Depending on your province, the government may have required you to temporarily shut down your business if they consider you to be a non-essential service. Provincial governments are progressively announcing their plan for reopening business, mostly on a sectoral basis.
If your business is able to keep operating at a distance, through telework, or online commerce you will likely be permitted to continue to stay operational throughout this period.
Fines may be applicable for non-compliance.
To find out if your provincial government is requiring you to temporarily close or have given you the right to reopen please see our online guide.
The definition of an essential service can vary from one province to another. Please see our online guide to find out if your province has defined essential services.
Unfortunately, this is the case for many businesses. The government has announced a number of measures to help you get through this difficult time. There are also steps you can take to determine your business’ future:
- Review your finances: Look at your revenue vs your expenses – are you able to meet your basic expenses? Speak to your accountant/bookkeeper about your options and whether it makes sense to stay open, pause your business, shut down until an opportunity in the market arises, or close your business.
- Make a Business Continuity Plan: Weathering the storm will be difficult, make sure you have a plan as to how to do it. Restarting a business that has been suspended will take thought and time to bring back to its former level. Are there other options for your business to stay open? Can you find new suppliers? Can you change your business model to continue to serve your clients (i.e. provide delivery of food instead of having sit-in customers)
- Speak to your commercial insurance provider: We have been hearing from you and insurance companies that COVID-19 is very rarely covered. Some insurance companies require that you have physical damage in order to access your Business Interruption insurance, others just do not cover diseases. Because every commercial insurance policy is different, we recommend that you speak with your insurance provider to better understand what coverage is available to you under the terms of your policy. If anything, you should check if any flexibility exists with your insurer and figure out what you may need to know to keep your commercial and personal insurance policies valid for when you are ready to open your business doors again. For more information visit the Insurance Bureau of Canada.
- The Insurance Bureau of Canada (IBC) is implementing a series of consumer relief measures to ease the financial burden on insurance customers. These include immediate auto premium reductions and waiving NSF fees charged by insurers for insufficient funds to cover a customer’s premium. IBC members will also work with small business to help manage costs, exploring flexible payment options for those in a vulnerable position or facing financial hardship as a result of COVID-19. For more information about business interruption coverage, read IBC’s FAQ. You should review it before calling your insurance provider.
- Communicate with your employees twice a week:
- Let employees know what safety measures/policies you are putting in place to keep them safe.
- Post educational posters and share safety tips.
- Ensure that there is a way for employees to notify you if they are sick whether that be through the health and safety representative/committee or though their manager.
- Talk to employees about their job security/health status/vacation/benefits options.
- Look at your business function and re-evaluate frequently. Cutting back on non-essential projects could save you money or looking at how your business can pivot and adapt to this COVID-19 environment will help your business’ future planning
- CFIB has negotiated CFIB Savings deals for you and your business. They are included in your membership, so we encourage you to take advantage of them.
- Look at your contract or lease to see if there is a clause regarding extreme circumstances.
- If there is nothing in the contract, you can try and negotiate an agreement to reduce or delay your payment.
- Document any negotiations, discussions, agreements and/or payments.
- Look carefully at your finances, so you know exactly what you can afford before you speak with your landlord/a supplier. If they permit you to reduce payments, you want to be sure it is an amount you can comfortably afford.
- Speak with your bank, credit union, BDC, EDC or other loan provider for some relief.
- We have been hearing from you and insurance companies that COVID-19 is rarely covered. Some insurance companies require that you have physical damage in order to access your Business Interruption insurance, others just do not cover diseases. Because every commercial insurance policy is different, we recommend that you speak with your insurance provider to better understand what coverage is available to you under the terms of your policy. If anything, you should check if any flexibility exists with your insurer and figure out what you may need to know in order to keep your commercial and home policies valid for when you are ready to open your business doors again. For more information visit the Insurance Bureau of Canada.
Is Canada Post offering COVID-19 Mail Hold and Mail Forwarding services?
Canada Post ended its new sign-ups for the free Hold Mail service and the free Mail Forwarding service on August 1, 2020. However, businesses that registered before August 1, 2020, and still require the Hold Mail or Mail Forwarding service will continue receiving either for free if they renewed before August 1. All Hold Mail and Mail Forwarding services new sign-ups must pay the full price as of August 1, 2020.
Mail Hold: Customers who requested the Hold Mail service between March 13 and August 1 will get it for free. Residential and business customers must register online and fees will be refunded after purchase.
Mail Forwarding: By using Canada Post’s online mail-forwarding service you can have business mail forwarded to an address of your choosing. If you subscribed to this service after March 13 and before August 1, Canada Post will provide you with a refund when you cancel the service.
For more information see the Canada Post Q & A.
For refunds, complaints or questions please contact Canada Post’s Customer Service at 1-866-607-6301.
CFIB continues to work with its trusted partner, PrimaSure to provide low-cost group benefits for business owners and their employees.
To alleviate some of your stress during the crisis, PrimaSure, offered by Nexim Insurance Solutions, has opened its call lines to all business owners with group insurance questions - not just PrimaSure clients.
The below answers mainly pertain to PrimaSure products. For more information, on how your particular contract is affected, contact Nexim by phone at 1 866 693-2342 or email at [email protected].
During a layoff, all benefits are maintained, including disability insurance (if this is a benefit on your plan) for up to 3 or 4 months (depending on your contract), as long as premiums continue to be paid.
Employers have different options to be applied to the entire class of employees which are:
- Maintain all benefits for their employees during layoff;
- Maintain all benefits without disability insurance;
- Terminate all benefits or Suspend the group plan.
- In Quebec, Members whose health coverage has been terminated, must register with the RAMQ in order to have coverage for their medications. Once they have returned to work and are actively back on the group insurance plan they will have to contact the RAMQ to advise they again have access to private medical.
Please call Nexim Canada before making a decision on one of the above options to be properly informed on the forms that must be completed and information that must be submitted to the carrier.
While in the short term it may seem better to terminate the benefits for employees while on layoff, it is important to consider the following points that could affect the decision:
- Should an unfortunate death occur during the layoff, there would have not been active life insurance in place for the participants and their dependents;
- Once a participant has decided to terminate disability benefits during a layoff:
- Should the participant fall ill and are unable to return to work once the layoff has ended, they will not be eligible to make a disability claim if the disability occurred during the time they were not covered; and
- Once returned to work, the pre-existing clauses may once again be applied for the disability benefit.
- All participants who are currently out of the country will be left without coverage for any emergencies that occur;
- All employees who decide to terminate their benefits by their own will risk having to provide proof of good health to re-adhere to the plan once returned to work; and
- If the re-enrolment period for the group is missed, participants may need to provide proof of good health to re-enrol on the plan.
Yes, a group can decide to suspend coverage for all employees (during that period any claims incurred will not be reimbursed including Life) for a period of up to 3 or 4 months depending on their contract. During this period the group would not pay for any premiums.
In order to avoid a re-enrollment process, the group would need to reinstate the benefits prior to the maximum layoff period indicated in their contract.
The employees no longer fulfilling the minimum amount of hours to be eligible for the plan will be able to remain active on the plan for the length of the layoff period indicated for their plan, after which they will need to fulfill the minimum hours required to stay active on the plan.
This will depend on your provider and plan – please contact Nexim for more information on your specific plan.
There are postal pharmacies at your disposal that will deliver medication to your door. Pharmacies in your area may also be delivering prescriptions to avoid an overload of people in their establishments. Maintenance drugs can easily be delivered on schedule to your door and can be processed by phone or online.
Carriers are asking for classes within the policies to be dealt with the same way. A decision must be made for the entire class of people. In the situation that only partial staff is laid off, those employees or owners who are still actively working can continue to have access to the Group Insurance Plan as usual.
As businesses close and there is a move to working at home, cyber-security is more important than ever. There have already been reports of malicious emails masquerading as legitimate entities using the COVID-19 pandemic in an effort to capture private and personal information.
NOTE: Government will not reach out to you directly by phone or email to offer you relief
When fraudsters pose as a company, brand or e-mail address you recognize, it’s called phishing. A play on the word fish, the perpetrators are fishing for someone to fall for their scam by sending emails (usually with a link to a website) purporting to be from a reputable company. They’re hoping to trick people into giving out personal information or making payments.
- Make sure you have a spam filter on your emails
- Look for tell-tale signs such as typos, grammar errors or poor image quality
- Check the e-mail address – businesses and organizations don’t use hotmail or gmail accounts
- Don’t assume people or businesses are who they say they are
- Don’t give out personal/business information unless you’re absolutely sure of who you are dealing with.
- Trust your instincts – if you’re not comfortable, contact the company directly to find out if the message is legitimate.
Callers will try to trick you into handing over personal information (full name, address, Social Insurance Number, etc.) by posing as a government official. A true government official will be willing to provide you with their name, agent ID number (if applicable), department, the building they are calling from, and will provide you with a phone number that you can call back to reach them. Government agents will also already have your information. Please double check your online portal accounts for any notifications of an audit. We are aware that CRA agents may require a second profile verification call to verify the legitimacy of businesses who have applied to CEWS. If you are unsure of the caller's identity, do not give out any personal information and say that you will call the CRA at another time.
Examples of scam calls include callers pretending to be from CRA either threatening criminal action if a fine isn’t paid or offering relief monies paid by direct deposit. These scammers often try to keep victims on the phones as long as possible with stress tactics and sometimes even pretend to reroute you to a phone line impersonating the local police authority.
Similar to phishing, text scams will try to get you to click a link that will either lead to a malicious website or download malicious content onto your phone. Recent examples include a fake Red Cross text offering free face masks if you just click the link.
Stop and think before you share personal information over the phone or click on COVID-19-related links.
The quickest way to access CERB if you can’t do it through the portal would be to call the automated CERB telephone service at either 1-800-959-2019 or 1-800-959-2041 (if you have filed your taxes up to 2018) or at 1-800-959-8281 if you have never filed a tax return.
If you wish to speak with an agent about CERB, you can call CRA at 1-833-966-2099.
If you wish to talk to an agent about the issues with your My Account portal, you can call 1-800-959-8281.
Please note that all CRA numbers are currently experiencing higher than normal call volumes, and therefore wait times to speak with an agent are longer.
If you need help with My Business Account you can call 1-800-959-5525.
Please note that all CRA numbers are currently experiencing higher than normal call volumes, and therefore wait times to speak with an agent are longer.
Arm's-length: Generally, an arm's length employee is any employee who does not own the business (or in the case of a corporation, has a controlling interest in the corporation) and is not a member of the owner’s immediate family.
Non-arm's length (not at arm's length): A non-arm's length employee is someone who owns the business (or in the case of a corporation, has a controlling interest in the corporation) or is part of the owner’s immediate family.
Immediate family can be related by:
- grandparents of spouse,
- parents of a spouse,
- brothers and sister of a spouse,
- children of a spouse,
- spouse of a brother or sister,
- spouse of a child,
- spouse of a grandchild.
- Common-law partnership ;
- treated the same way as legally married spouses.
- adopted children are treated in the same way as blood-related children.
As per the CRA, Employment income is the number that you would find in box 14 of an individual’s T4Slip. This includes:
- Salary, wages (including pay in lieu of termination notice), tips or gratuities, bonuses, vacation pay, employment commissions, gross and insurable earnings of self-employed fishers, and all other remuneration (see Box 14 – Employment income for a detailed list) you paid to employees during the year
- Various taxable benefits or allowances
- Retiring allowances
- Deductions you withheld during the year
- Pension adjustment (PA) amounts for employees who accrued a benefit for the year under your registered pension plan (RPP) or deferred profit sharing plan (DPSP)
For a limited time, the Canadian Payroll Association is allowing non-members to ask their Payroll InfoLine COVID-19 related payroll questions.
Ask you question here.
COVID-19 has put my business into unmanageable debt. What can I do?
If you struggle to pay bills, find that you are evading collection calls, and feel you can no longer make ends meet, it may be time to explore your options.
Alternatives may be:
- Credit counselling
- Debt consolidation
- Consumer or business proposal
- Declaring bankruptcy
Talk with your financial institution about the first two options. To learn more about a proposal, or filing bankruptcy, meet with a Licensed Insolvency Trustee (LIT). LITs are federally regulated professionals who can evaluate your financial situation, explain debt-relief options, and help you make informed choices. Find a Licensed Insolvency Trustee.
What is a Consumer or Business proposal?
A proposal is an alternative to bankruptcy. A Licensed Insolvency Trustee (LIT) prepares your offer to pay creditors a percentage of what is owed over a specific period of time, or to extend the amount of time to pay off the debt, or a combination of both. The creditors vote to accept or reject the proposal. Accepting a proposal means creditors can recover at least some of the outstanding debt, compared to bankruptcy where they may lose everything you owe them.
There are two types:
- Consumer proposals: For individuals owing less than $250,000, excluding mortgages; and
- Division 1 proposals (Commercial proposals): For businesses and individuals (there is no limit regarding how much money is owed).
Once all the terms of the proposal are met, the debtor is legally released from the debts included in the proposal.
A proposal is noted on your credit report. If you have a good payment pattern, you will be that much further ahead when you want to rebuild your credit.
What are the different types of bankruptcy?
Bankruptcy is a structured, formalized legal process to be released from the obligation to repay debts. It can allow you to reset your finances, but bankruptcy has limitations and longer-term implications. Therefore, it is often viewed as the last resort after the alternatives of refinancing or filing a proposal.
There are three types:
- Personal: Canada’s most common type of bankruptcy. It often occurs when someone has a loss of income, can’t decrease debt, has maxed out borrowing options and relies on credit for everyday expenses.
- Small business: For sole proprietors and partnerships that are not incorporated, a small business bankruptcy is treated the same as a personal bankruptcy. The assets and debts of the business are viewed as the owner’s personal assets and debts. Your personal assets (eg., house or vehicle) can be seized if your business cannot meet its financial obligations.
- Corporate: For incorporated businesses, which are legal entities, and therefore owners’ personal assets are not at risk.
Once you have declared bankruptcy, creditors cannot take your assets or inventory, nor can they garnish your wages if you get a job. Your Licensed Insolvency Trustee (LIT) will sell your assets, including any acquired during your bankruptcy, but excluding any assets exempted by provincial and federal laws. Money raised by the asset sale is held in trust by the LIT for distribution to your creditors.
Bankruptcy will be noted on your credit report, making it harder to get a loan. You may have to complete certain duties, such as attending credit counselling sessions and reporting your income to your trustee every month.
Visit Bankruptcy – Business structures to learn how a bankruptcy will affect the CRA accounts for sole proprietorships, partnerships and corporations.
Every province has its own legislative requirements and recommendations that must be followed when reopening businesses, otherwise you could be fined. Not knowing could cost you! We've created customize provincial FAQs for everything you need to know when it comes to reopening your business.
|British Columbia||Prince Edward Island|
|New Brunswick||Newfoundland and Labrador|
How to access financial support
The below surveys can help you determine which programs to look at:
For student job subsidies, check out our list of student workplace programs.
Resources for small business grants
- Canada GrantWatch
- Canada Startups funding database
- Etools for exporting (Canada business database)
- Funding programs for employment and social development
- Futurepreneur Canada
- Government of Canada business grants and financing
- Startup Canada grants and programs
You can view a PDF of chart outlining significant support programs, including links to application forms here.
You can also view a PDF of the chart outlining all support measures, including links to application forms here.
- Income Tax Return Submissions are extended to June 1, 2020
- Those expecting a GSTC or Canada Child Benefit should try not to delay their filing to ensure that their 2020-21 benefit is properly determined.
- Payment arrangements are available if you cannot pay your taxes, child and family benefit overpayments, Canada Student Loans, or other government program overpayments in full
You can view a PDF of chart outlining tax deferrals with links to application forms here.
If you are in Quebec, know that Revenu Quebec is applying similar measures to CRA.
- GST/HST remittances will be extended until June 30, 2020. Eligibility is as follows:
- Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
- Quarterly filers have to remit amounts collected for January 1, 2020 through March 31, 2020 reporting period; and
- Annual filers, whose GST/HST return or instalment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer's current fiscal year.
Note: although remittances are deferred, you must still file your GST/HST return on time. Quebec business can postpone filing until June 30, 2020.
- Corporate income tax payments due between mid-March to September 1st, 2020 are deferred till August 31, 2020. Must still submit them by June 1, 2020.
- Customs Duty and Sales Tax for Importers for statements of accounts for March, April, and May will be deferred to June 30, 2020.
- More information about particular accounting and payment obligations on imported goods can be found by contacting the Canada Border Services Agency at 1-800-461-9999.
- Trusts, Partnerships and NR4 information returns are all extended to May 1, 2020.
- Existing Requirements to Pay (RTPs) do not need to be remitted or complied by Banks and Employers during this time until further notice
- Charities submitting a Form T3010 (Registered Charity Information Return) due between March 18, 2020 and December 31, 2020 will have an extended filing deadline of December 31, 2020
- Charities Directorate has suspended all operations until further notice (call centre, registration and audit activities)
- No deferrals or exemptions on payroll deduction payments and all related activities at this time.
- Administrative Income Tax actions required by the CRA that are due after March 18, 2020, can be deferred to June 1, 2020.
- These administrative income tax actions include returns, elections, designations and information requests. Payroll deductions payments and all related activities are excluded.
- Income Tax Payment Deferrals for taxes owed between March 18, 2020 and September 2020 until after August 31, 2020
- Penalties & Interest Relief will be provided to those affected by COVID-19 on a case-by case basis when submitting the Form RC4288, Request for Taxpayer Relief - Cancel or Waive Penalties or Interest
- Objections related to:
- Canadians' entitlement to benefits and credits will continue to be processed
- Other tax matters will be suspended until further notice by CRA
- Appeals before the Tax Court of Canada are suspended until further notice
- Objection Requests due March 18 or later now have an extended deadline until June 30, 2020
- Collections activities will be suspended until further notice and flexible payment arrangements can be made by:
- Contacting your CRA Collections Officer
- Calling CRA at 1-800-675-6184
- GST/HST & Income Tax Audits:
- Interaction with taxpayers will be limited to high risk and exceptional cases, or cases of high risk GST/HST refund claims which require some contact before they can be paid out
- No new post assessment GST/HST or Income Tax audits for the next four weeks.
- Other Audits:
- No new audits will be launched;
- No requests for information relating to existing audits; and
- No audits should be finalized and no reassessments should be issued
- CRA Outreach Officers are now available to Communities/Organizations over the phone by completing their online form
- Bank Mortgage Payment Deferrals (for up to 6 months) with Canada's large banks are available on a case-by-case basis. Contact your financial institution to find out more information.
- CMHC Mortgage Payment Deferrals and other mortgage tools are available immediately. Contact the Canada Mortgage and Housing Corporation for more information.
- Auto insurance premium reductions from Insurance Bureau of Canada members
Is there another extension of the GST/HST deferral? What can I do if I cannot pay my GST/HST payments by June 30th?
Unfortunately GST/HST deferrals will not be extended past June 30, 2020. Businesses will have to file and remit their GST/HST returns by June 30, 2020, or interest will begin to accrue at a rate of 6%/annum compounded daily.
If a business already owes remittance to CRA, it can create a payment plan by calling 1-800-675-6184. This is not recommended if you have no outstanding remittance.
The new Business Credit Availability Program (BCAP) provides $40 billion of additional support to businesses experiencing challenges through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). BCD & EDC work together with eligible financial institutions to offer you solutions through your regular financial institution. Please speak to your financial institution account manager to determine what help is available to your business.
This program includes:
- Canada Emergency Business Account (CEBA) a 40k loan to be provided through financial institutions.
- Loan Guarantee for Small and Medium-Sized Enterprises to support their operations. EDC will guarantee 80% of new operating credit and cash flow term loans that financial institutions extend to SMEs, up to $6.25 million. The program cap for this new loan program will be a total of $20 billion for the export sector and domestic companies.
- Co-Lending Program from Small and Medium-Sized Enterprises to provide additional liquidity support to Canadian businesses. The Co-Lending Program will bring the Business Development Bank of Canada (BDC) together with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts up to $6.25 million, 80 percent of which would be provided by BDC, with the remaining 20% by a financial institution. BDC’s portion of this program is up to $5 million maximum per loan. Eligible financial institutions will conduct the underwriting and manage the interface with their customers. The potential for lending for this program will be $20 billion.
These are now available through eligible banks and credit unions.
Speak to your current financial institution. Your assigned account manager will likely have access to these loans or have a method of contacting BDC and EDC.
CEBA applications are available now, but only through financial institution online portals.
All eligible credit unions will be added to the list of providers. There are 232 Financial institutions offering the BCAP programs. Please check the list provided on the CEBA website under “How can I apply”.
Effective March 24, 2020, EDC is stepping up to support all exporting companies by offering their bank a guarantee on loans of up to $5M so that companies can access more cash immediately. For more details, contact your financial institution.
For credit insurance customers, EDC understands how difficult this time is and therefore effective immediately EDC will:
- Cover losses for goods shipped even if the buyer has not accepted the goods, subject to terms.
- Waive the 60-day waiting period for claims.
- If you’re new to EDC and are seeking more information please call 1-800-229-0575 or contact them here.
- Current EDC Customers who need working capital and financial solutions should contact their account manager.
- Existing EDC customers who need assistance with insurance products and online portals should contact 1-866-716-7201 and [email protected].
- If you only sell products and services within Canada, other Business Credit Availability Program (BCAP) partner financial institutions are here to help you. Contact the Business Development Bank of Canada (BDC) at 1-877-232-2269 as a first step to see how they are helping businesses like yours.
Update 2020-06-18: The CEBA Non-Deferrable Expense Stream is available as of June 26, 2020, in the big financial institutions. Smaller institutions may take a few more days to implement it.
This new stream was created to allow sole proprietors, businesses who rely on contractors and businesses who pay themselves in dividends to access CEBA after showing that they have non-deferrable-expenses (actual and forecasted) between $40,000 and $1.5 million for the year 2020. The list of non-deferrable expenses can be found below.
Government also announced they are looking at ways to help business owners and entrepreneurs who don’t have business bank accounts (preferring to use a personal bank account), and new businesses. More information to come.
CEBA is a lending program that can help businesses pay their expenses that cannot be deferred during this challenging period. These loans are government funded, interest free and provided through financial institutions in cooperation with Export Development Canada (EDC).These loans have a forgivable portion of 25% (up to $10,000) when the loan is paid back, starting in 2021. Some banks are offering these as a $40,000 term loan and others are offering a line of credit up to $40,000-sometimes through a zero-interest credit card.
If your business would be helped by the $10,000 forgivable portion, but is concerned about incurring more debt during this crisis, you are able to take out the full $40,000 loan and set aside the $30,000 to ensure you have the funds to repay the loan in its entirety when it becomes due. By doing this, the $10,000 acts as a non-repayable grant, helping the business pay some of its ongoing costs until revenues improve.
Keep in mind your business would have to take out the full $40,000 in order to get the $10,000 maximum benefit. If you take out a smaller amount with financial institutions offering a line of credit approach, only 25% of that amount would be non-repayable.
It is also important to note that the loan is interest free up until December 31, 2022. To qualify for forgiveness, the loan needs to be repaid by then (i.e., if paid down earlier, a payment of 75% of the loan value would fully extinguish the payment obligations on the loan). After that date the loan converts into a 3 year term loan, with 5% yearly interest, and there will be no forgiveness of 25% up to $10,000.
A loan of up to $40,000.
Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000). If you take out the whole $40,000 out up front you can use the $10,000 as if it were a grant. If you do this then remember to keep the rest of the $30,000 safe for when you need to pay it back.
- Borrowers with a Canadian operating business open as of March 1, 2020; and
- Borrowers with a federal tax registration; and
- Borrowers with a total employment income paid in the 2019 calendar year between $20,000 to $1.5 million in total payroll in 2019 (found on your T4Sum); and
- Borrowers with an active business chequing/operating account with their primary financial institution opened on/prior to March 1, 2020 and was not in arrears on existing borrowing facilities by 90 days or more as at March 1, 2020; and
- Borrowers who have not already used the CEBA and will not apply for the CEBA with other financial institutions; and
- Borrowers who acknowledge their intention to use the loan to continue to operate their business or to resume their operations; and
- Borrowers who agree to participate in post-funding surveys conducted by government or any of its agents
Non-Deferrable Expenses Stream:
- Borrower with total payroll of $20,000 or less in year 2019; and
- Borrowers with a Canadian operating business open as of March 1, 2020; and
- Borrowers with a federal tax registration; and
- Borrowers with a CRA business number that have filed a 2018 or 2019 tax return; and
- A total of 2020 Eligible Non-Deferrable expenses between $40,000 and $1,500,000.
- Borrowers with an active business chequing/operating account with their primary financial institution opened on/prior to March 1, 2020 and not in arrears on existing borrowing facilities by 90 days or more as at March 1, 2020; and
- Borrowers who have not already used the CEBA and will not apply for the CEBA with other financial institutions; and
- Borrowers who acknowledge their intention to use the loan to continue to operate their business or to resume their operations; and
- Borrowers who agree to participate in post-funding surveys conducted by government or any of its agents
Note: Businesses that did not have any returns to file with CRA in 2018 or 2019 can still file nil returns on their My Business Account.
How do I apply to the CEBA non-deferrable expense stream?
- Step 1 - Apply for the Non-Deferrable Stream through your financial institution
- Get together your receipts/invoices/agreements in an uploadable form for evidence of your 2020 Eligible Non-Deferrable Expenses
- Step 2 - Apply for the Non-Deferrable Stream though the government of Canada website
- We are hearing that many businesses are experiencing technical difficulties while applying. Make sure you start correctly by using Chrome, Safari, Firefox or Edge and ensuring that your cache and cookies history is clear. Please note these applications go to EDC and not CRA.
- Need a guide? https://ceba-cuec.ca/wp-content/uploads/2020/06/CEBA-Document-Upload-Guide-EN.pdf
- Have a question? Check the CEBA FAQ https://ceba-cuec.ca/faq/
- Wait for your Financial institution to get back to you about if your application was approved or declined.
Still have issues, questions or concerns? Please try to address these with your financial institution first. If they cannot help you then please feel free to send us an email at [email protected].
I have applied, when will I receive access to the money from the Canada Emergency Business Account (aka CEBA/40k loans)?
Payroll stream: 3-10 days
Non-deferrable expense stream: 10-15 days
|CEBA 1.0||CEBA was launched in financial institutions. More FI were gradually added to the list of 233 CEBA providers. The list can be found on the CEBA website under How to Apply||Available April 9|
|CEBA 2.0||CEBA expanded the payroll range to $20,000 - $1,500,000||
Available April 16
|CEBA 3.0 Phase 1||CEBA created the Non-deferrable-expenses stream to allow sole proprietors, businesses who rely on contractors and businesses who pay themselves in dividends to access CEBA.||Available June 26
|CEBA 3.0 Phase 2||Expanding eligibility to Personal bank financial institution accounts, new businesses and financial institution accounts that have been opened after March 1st.
Where can I apply for the Canada Emergency Business Account (aka CEBA/40kloans)?
Eligible businesses should go to their financial institution’s website to apply for these loans. Your assigned account manager will likely have access to these loans or have a method of contacting BDC and EDC.
There are 233 financial institutions participating in providing CEBA. Please find their list on the CEBA website under How to Apply. Here are the details for the main financial institutions:
- ATB Financial
- Laurentian Bank
- Manulife Bank
- National Bank
- TD Bank
- Eligible Credit Unions
What is an eligible non-deferrable expense under the Canada Emergency Business Account (aka CEBA/40k loans)?
Eligible Non-Deferrable expenses are defined as $40,000 to $1.5 million in non-deferrable expenses for the year 2020 that have a contractual or legal obligation to be paid prior to March 1st. The eligible categories are:
- Wages (including contract workers) and other employment expenses;
- Rent or lease payments for business real estate purposes.
- Mortgage payments for business purposes. Should you work from home you can include the portion of the expenses that relates to your business like you would when calculating your business expenses for tax purposes.
- Rent or lease payments for business capital equipment.
- Insurance payments.
- Property tax payments.
- Business utility expenses (gas, oil, electricity, water, telephone and internet).
- Regularly scheduled debt service payments.
- Independent contractor payments incurred under an agreement made before March 1st.
- Licensing, accounting and subscription authorizations or permission fees necessary to conduct business.
Is the Canada Emergency Business Account (aka CEBA/40k loans) taxable?
If you have received CEBA:
- Only the amount that is forgivable is considered taxable.
- The rest is considered a repayable loan and does not need to be included in your revenue.
When your financial institution provides you with your forgivable loan amount you can declare your forgivable loan portion to CRA in two ways:
- As revenue in your tax return, or
- You can elect to not include the forgivable loan amount in the income of the year in which the forgivable loan is received; and instead reduce the deduction for business expenses by the amount of the forgivable portion.
For more information on how to do this, or if you have other questions on how to prepare your future tax returns, please speak to CRA or your accountant.
The Regional Development Agencies (RDAs) are providing the Regional Relief and Recovery Fund (RRRF), an alternative for businesses who fall through the cracks. The below are programs available and similar to the CEBA loan.
|RDA||Who is eligible?||Who is not eligible?||How much money can I get?|
|Canada Economic Development for Quebec Regions||Businesses (including self-employed and start-ups) and organisations that:
||Businesses and organisations that:
||One-time financial assistance of $40,000 or less:
|FedDev (southern Ontario)||Businesses (including sole proprietor) and organisations that:
||Businesses and organisations that:
||Repayable contributions up to $40,000
|FedNor (Northern Ontario)||Businesses and organisations that:
||Businesses and organisations that:
||Repayable Contribution up to $40,000
Cover the following costs:
|Western Economic Diversification Canada||Businesses and organisations that:
||Businesses and organisations that:
||Repayable contributions up to $40,000
- Double check your application! We are hearing that many businesses are inputting their legal business name, branch number, business number, business address, or payroll amount incorrectly. These should reflect what the financial institution has on file. Please ensure to look at the format of the answers that you are required to provide.
- Is your account a personal one or a business account? Only business accounts are eligible for CEBA at this time.
- Try calling your financial institution's customer service line or branch line to be assigned to an accounts manager to determine the reason for your rejection. They should be able to walk you through your application.
- Email [email protected] and include:
- Your business legal name (according to your financial institution)
- Your financial institution
- A summary of your situation
- Your contact information
- If you want to speak to a live person, we encourage you to keep in touch with CFIB (whether your CEBA application is successful or declined) by sharing your situation with a Business Counsellor at 1-888-234-2232 or by email at [email protected]
If you are rejected due to a need to update your financial institute's profile you may need to wait 24-48hrs for this to be updated before you apply again.
If you are rejected due to an inputting error then you can try applying again. Financial institutions are telling us that they are seeing many inputting errors in applications. They do encourage you to try applying again.
Check out our CFIB's page on federal government relief measures here.
The federal government is providing businesses with a wage subsidy toward employee wages. Businesses that are able to show a drop in revenue will be eligible to receive the subsidy for the wages they have paid their employees from March 15th to December 19th.
For those struggling to navigate the new rules, please read The 6 Most Important Changes to the CEWS and our Guide to understanding the updated CEWS. A business can complete their application without an accountant, but it may take some work. You have until January 31st, 2021, to apply online with CRA and you can always amend your application if you make a mistake.
CRA will be implementing a CEWS appeals process so those who are not sure if they are eligible should still apply and, if declined, will have an opportunity to appeal the decision. More to come.
We know that calculating your CEWS rate and Eligible Employee Remuneration will require some work. It is our understanding that CRA will create an interactive webpage to help business owners with the calculations. We are working with CRA to make sure any tool they develop is simple to use because if it is not, many businesses may choose not to participate or end up making unnecessary mistakes. CFIB is also here to help. If you have questions or need some assistance, please call our helpline at 1-888-234-2232.
What are the most up to date announcements to the Canada Emergency Wage Subsidy (CEWS)?
|2020-08-17||Period 5 applications will be available here.|
|2020-08-11||New CEWS calculator will be available here.|
|2020-07-22||Government passes the legislation.|
|2020-07-17||Government proposes a draft legislation that would extend the CEWS until Dec 19th and expand the support to all businesses suffering a revenue drop as a result of Covid-19. The new program would use a sliding scale allowing businesses who need the help the most to receive it, and businesses whose revenues are increasing to be eased back into the “new normal” with a tapering of the subsidy amount. You can read more about the proposed changes here and here.|
|2020-05-15||Finance Minister Bill Morneau announces that the CEWS will be extended to August 29th.|
|2020-05-08||Prime Minister Justin Trudeau announces that the CEWS will be extended beyond June.|
|2020-05-04||CEWS applications begin to be processed.|
|2020-04-27||Businesses can apply for the CEWS.|
The CRA presented a FAQ session with CFIB that you can watch for free on YouTube on What you need to know about the 75% wage subsidy with respect to the Periods 1-3
|2020-04-08||The Department of Finance announced the CEWS would launch in about “3 weeks."|
To see if your business is eligible to use the CEWS determine the following:
|Eligibility||Am I an eligible employer? To be eligible you must have:
Can I demonstrate a revenue drop of:
Are my workers eligible employees? To be eligible, your employees must:
If yes, then you can start calculating the subsidy. To maximize your CEWS you must determine:
|Subsidy||Your preferred accounting method (to be used for all periods) to reflect your impacted revenues:
Your preferred approach to reflect your impacted revenues:
Which periods will you deem eligible.
The amount of subsidy which will be based on the wages you paid to your eligible employees.
Essentially, the calculation for the CEWS equates to the sum of eligible employee wages (known as Eligible Remuneration) multiplied by the CEWS % rate you receive based on your revenue drop.
CEWS=(CEWS %) X (sum of Eligible Remuneration)
There is no maximum on the total amount of subsidy you receive, however, there is a limit on the amount of subsidy per employee. The maximum wages you can claim per employee is $1129/week. Now get out your calculators, gross revenues, and payroll numbers because we are going to go for a deep dive into CEWS.
More businesses have been included as eligible employers including certain seasonal businesses and amalgamated businesses during the pre-COVID period, etc. The program does not look at the number of employees, but at whether you have a CRA payroll number as of March 15, 2020. If you did not have a CRA payroll number because your third-party payroll provider filed it for you, you can create one now and still be considered an eligible employer.
Eligible employers include:
- Individuals (including trusts)
- Corporations that are not income tax exempt
- Corporations that are tax exempt and are:
- Non-profit organizations
- Agricultural organizations
- Boards of trade
- Chamber of commerce
- Non-profit corporations for scientific research and experimental development
- Labour organizations or societies
- Benevolent or fraternal benefit societies or orders
- with of eligible employers, and certain Indigenous governments
- with eligible employers (including partnerships where at least 50% of the interests in the partnership are held by eligible employers
- Registered Canadian Amateur athletic associations
- Registered journalism organizations
- Not for profit organizations
- Registered Charities
- Certain Indigenous government-owned corporations that carry on a business
- Private schools or private colleges
How do I calculate my gross revenue drop for the Canada Emergency Wage Subsidy (CEWS)?
A revenue drop is the percentage of gross revenues lost in a month in comparison to a pre-COVID-19 reference period (known as a prior reference period).
To calculate your gross revenues, you can choose between two accounting methods. You can choose to record your income as it is received and expenses as they are paid (Cash method) or you can choose to record income and expenses when they are billed (Accrual method). Once you have chosen your preferred accounting method, you will have to continue to use that same accounting method for all periods from 1 to 10. You can change from one accounting method to the other, but you will then have to change the accounting methods for all previous applications as well so you are best to choose one method and stick with it for all your CEWS applications.
To calculate your amount of revenue drop you will need to choose between the General approach (compares revenue of current month to same month in 2019) or the Alternative approach (compares revenue of current month to average revenue in January and February of 2020). See below for more details.
Whatever approach you use, you will have to continue to use that same approach for Periods 1 to 4. The only time you will be allowed to switch your approach from one to the other will be in Period 5, after which you will have to use that same approach for the rest of the CEWS periods.
As you can see, there are more calculations to make in the new periods. This is because the New CEWS percentage consists of a base CEWS percentage and a top-up CEWS percentage (if applicable).
Any revenue drop will make you eligible for the new base CEWS percentage and is based on a 1-month revenue comparison. A revenue drop of 50% or more will make you eligible for the Top-up CEWS percentage. This is based on a 3-month average revenue comparison.
Both the Base CEWS percentage and the Top-up CEWS percentage are comprised of a revenue drop calculation that is multiplied by a specific amount set by the government called a multiplier. See Table 1.
Base %=(Base multiplier) X (Base revenue drop)
Top-up%=(Top-up multiplier) X (Top-up revenue drop - 50%)
Table 1: Subsidy multipliers by claim period
Base subsidy multiplier by period
5 & 6
July 5 - Aug 29
Aug 30 - Sept 26
Sept 27 - Oct 24
Oct 25 - Nov 21
Nov 22 - Dec 19
Base subsidy multiplier
Top-up subsidy multiplier
When determining the amount of subsidy for which you are eligible, start with calculating the top-up CEWS rate for each period. If you have a revenue drop of less than 50% on average over the previous 3 months, you can save yourself some time as you will not be eligible for the top-up CEWS.
If you do have a revenue drop rate of 50% or more on average over the 3 month period prior to the period for which you are claiming, then sharpen your pencil because you qualify for both the base CEWS percentage and the top-Up CEWS percentage.
Once you determine which approach works best for your business you can add both your base CEWS revenue drop percentage and top-up CEWS revenue drop percentage (which will be zero if your revenue drop is less than 50%) to determine your new CEWS percentage.
If you are in Period 5 or 6 you can use the Safe Harbour Rule to use the greater of the old or new revenue reduction percentage in your CEWS. To decide which is likely more beneficial for your business, compare your new CEWS percentage with the old CEWS percentage. If your revenue reduction is greater or equal to 30 % using the old calculations AND your new CEWS percentage (the sum of Base% + Top-up%) is less or equal to 75% for the claim period, then use the old CEWS calculations. Table 2 shows the CEWS periods and the months with which you are comparing your revenues.
Within the old CEWS rules, there is an option called the Deeming rule which allows businesses to apply for CEWS without needing to show CRA proof of having met a revenue drop in the current claim period if they qualified in the previous claim period. This rule can only be applied for the first 4 CEWS periods. It is important to note that even if you are deemed eligible for a period, you must apply for every period in order to receive funding.
This Deeming rule evolves in Period 5 and onwards as it was integrated into the revenue drop test. Instead of automatically qualifying for a future period, a business can elect to use their current OR prior month’s revenue to compare with the previous year to determine which would provide them with the highest amount of subsidy.
How do I determine which employees’ wages are eligible for the Canada Emergency Wage Subsidy (CEWS)?
Eligible employees must be employed in Canada to be eligible for the wage subsidy. In addition, for periods 1 to 4 only, they cannot be without pay for 14 or more consecutive days within a CEWS period. This rule no longer applies from period 5 onwards.
You will then have to determine whether the employee is arm’s length or non-arm’s length (usually family members/owners), and if they are on a paid leave of absence or not. Chart 1 may be helpful in navigating the complexities of which types of wage subsidy calculations apply in each circumstance.
How do I calculate my Baseline Remuneration for the Canada Emergency Wage Subsidy (CEWS)?
The baseline remuneration is the average wage paid from a selected period prior to COVID-19. As shown below.
Baseline Remuneration Periods
Jan 1-Mar 15, 2020, or
Mar 1-May 31, 2019
Jan 1-Mar 15, 2020,
Mar 1-May 31, 2019, or
Mar1-June 30, 2019
Jan 1- Mar 15, 2020, or
Jul 1-Dec 31, 2019
To maximize your employee’s Baseline Remuneration, you will need to determine which baseline period gives your employee the greatest average wage. To do this:
- Total all the remuneration paid to the employee during the selected Baseline Remuneration period.
- Divide the total pay by the number of days in the selected baseline period, subtracting all days within any period of 7 or more consecutive days the employee was not paid for
- Multiply the result by 7 to get the average weekly Baseline Remuneration.
What is the deeming rule for the Canada Emergency Wage Subsidy (CEWS)?
For Periods 1-3, the Deeming rule allows businesses who have met a revenue drop in one period to be eligible to apply for the next CEWS period without needing to show CRA proof of having met a revenue drop. From what we understand so far, you can at maximum use this deeming rule twice.
Below is a scenario where a business could be eligible to use the deeming rule more than once.
Period 1: Meets the 15% revenue drop requirement - Eligible
Period 2: Uses deeming rule - Deemed eligible
Period 3: Meets the 30% revenue drop requirement - Eligible
Period 4: Uses the deeming rule - Deemed eligible
Note: Businesses must apply for every period they would like to receive funding.
For Periods 5-10, the Deeming rule has changed its meaning to allow businesses to use their previous period’s revenue reduction percentage if their current claim period’s revenue reduction percentage is lower.
Can independent contractor wages be used for the new Canada Emergency Wage Subsidy (CEWS)?
No, unfortunately this was not changed in the new rules. Eligible remuneration still needs to be recorded on a T4.
Can my dividends be used for the new Canada Emergency Wage Subsidy (CEWS)?
No, unfortunately this was not changed in the new rules. Eligible remuneration still needs to be recorded on a T4.
If a corporation who is an eligible employer amalgamates or winds-up after March 15, can its successor claim or continue to claim Canada Emergency Wage Subsidy (CEWS) on its behalf?
In the new rules a business is allowed to elect to amalgamate with a predecessor as long as the main purpose of the amalgamation was not to cause the new corporation to qualify for the CEWS or increase their amount of the CEWS. These new rules will backdate to April 11, 2020 and allow a business to use their amalgamated corporation to calculate a benchmark revenue for the revenue decline test.
My business is new. Is there a prior referencing period alternative to Jan/Feb that I can use for the Canada Emergency Wage Subsidy (CEWS)?
No, unfortunately there are no alternative prior referencing periods alternative to Jan/Feb.
The CRA says businesses can choose to use the 10% TWSE or not. If they do choose to receive the TWSE, then they must declare it on their CEWS application.
If they do not choose to take advantage of it or are not eligible to the TWSE, then they can elect to input "0" in the area where it needs to be declared in the CEWS application.
If you still have a payroll remittance of fed, prov., or territorial income tax to send to the CRA
- Continue to deduct income tax, CPP, and EI from your employee’s wages
- Calculate the subsidy that you would be eligible from the wages paid from March 18, 2020 to June 19, 2020.
- Reduce your current payroll remittance of federal provincial, or territorial income tax to the CRA
If you do not have a payroll remittance of fed, prov., or territorial income tax to send to the CRA
- Your business will be treated as if they have over-remitted to the CRA.
- Submit your self-identification form to confirm that you have not yet received the TWSE. Ensure to do this sooner rather than later to avoid delays in processing your next T4Sum
- CRA will credit your payroll account by the amount of your eligible subsidy.
The CEWS is being processed at the payroll program (RP) account level, but an exception is being made for certain affiliated businesses or entities. Some affiliated and/or amalgamated businesses or entities will be able to consolidate or unconsolidate their revenues.
As of April 27 businesses are able to apply for the CEWS Periods 1-4. As of August 17th, Period 5 will be available for applications.
Applications can be submitted in 3 different ways. Please be mindful to only apply through one method.
When registering for CEWS through My Business Account you can request a new CRA security code be e-mailed to you through the Personal Tax Line 1-800-959-8281. You can only request this once the mailout request has been made through the registration of the My Business Account (online or over the phone at 1-800-595-8281)
When registering for CEWS through the Web forms online application (similar process to filing T4s) you can request the web access code online. If you are an authorizing authority on the payroll account, you can request the web access code over the Business Tax Line 1-800-959-5525. They will tell you the 4 digits and 2 letters verbally on the call.
Before using the calculator, you should prepare and have on hand the following:
- A direct deposit set up with CRA
- Updated financial accounts for the last year & the current year. Determine what indicators prove that you deserve the subsidy. It is always recommended that you use an accountant for this step.
- Updated gross payroll information for each of your subsidy eligible employees
- The amount of EI premiums and CPP contributions that you have paid on behalf of those employees
- The amount you have deducted by using the 10% Temporary Wage Subsidy for employees (if applicable)
- The amount that you have received from ESDC's Work-Sharing program to pay your employees (if applicable)
- Calculate your subsidy amount using the CEWS calculator
For Periods 1-10, all employers would be expected to at least make and provide proof of their best efforts to top up salaries to 100%. While topping the last 25% is not a requirement for the CEWS, the business should take Provincial Employment Standards and common law practices into consideration before reducing their employee’s wages. Your province may see a 25% reduction of wage as a constructive dismissal if not managed properly.
- Use the 10% wage subsidy (see details below). Using the 10% wage subsidy will reduce the amount you will be able to receive from the wage subsidy.
- Try applying for the wage subsidy anyways. This is no promise that you will receive the wage, but exceptions may be made if proper evidence is demonstrated. When the portal is available, be ready by having:
- Your financial books/ledgers/journals up to date
- Proof based on your finances to show that your business did have a decrease in cashflow/revenue/gross revenue
- Determine your payroll (i.e. this could be by requesting your T4Sum from CRA)
- Appeal the decision by filing an objection after having received your notice of determination
Your employees can earn up to $1,000 per CERB period and keep receiving CERB. Businesses cannot subsidize an employee's wage if they have not paid for it. Businesses will not be held accountable for individuals making more than $1000 per CERB period. The CERB is tied to an individual’s SIN and will therefore be deducted from the individual’s income tax should they go over the threshold.
This will not affect your CEWS eligibility. The CEWS & CERB programs operate independently from each other. If your employee receives over $1000/CERB period then it will be the employee’s responsibility they will have to pay it back to whoever sent them the benefit (ESDC or CRA).
The subsidy is calculated on employee wages paid. Should you be eligible for the subsidy (able to show the drop in revenue) you will still receive the subsidy for the remunerations paid after March 15.
For example, if you are eligible for the first claiming period (from March 15 to April 11), but were required to lay off your employees on March 31, you will receive the subsidy for employee wages paid between March 15 and March 31. You will not be able to subsidize any wages that you have not paid to your employees. As long as your employees have no employment income for 14 consecutive days within a 4-week period they would be eligible to receive the CERB.
Technically no. If you no longer have work for your employee, you could decide to continue to pay them and benefit from the subsidy. In that case, you would not have to lay off your employee.
Please note: EI and CPP (as well as the Quebec Pension Plan and the Quebec Parental Insurance Plan, in Quebec) can be refunded for employees who are paid while on leave. The employee would still be required to pay their share of the EI and CPP. This can be applied for when applying for the wage subsidy.
It depends on the structure of the business. Wages can only be subsidized if there is an employee/employer relationship. If an employee receives a T4 at the end of the year, the business would be able to subsidize their salary. To determine your payroll amount to be subsidized check your T4Sum. CFIB is lobbying the Ministry of Finance to expand this to other kinds of wages.
Please note that should you make changes to your business structure now in order to include your wage in the T4Sum, you will be required to provide proof of reason for this change. Changing your business structure at this time may be perceived as trying to take advantage of the program and may make you ineligible for the subsidy.
The definition for arm's length can be found on CRA's website.
Simply put, a person at arm's length does not have a blood, trust or controlling relationship with the business entity. Persons not at arm's length can be more simply viewed as family, significant others, partnerships, or businesses where one partner has controlling interest/voting shares.
For example, an owner's daughter works for a business. She would be a "related person" not at arm's length. Whether the daughter's salary could be subsidized would depend on how her pay and decision making is structured within the business.
- Arm's length - Should the daughter be paid a salary reflected on a T4 and T4Sum, the business entity could subsidize her wage like other employees
- Not arm's length - Should the daughter not be considered an employee under CRA employer/employee rules, the business entity would not be able to subsidize her wage
- Should the daughter be hired after March 15th and given a salary that can be reflected on a T4 and T4Sum her wage would not be eligible for the subsidy. This would seem like the controlling partnership/family is creating a wage to subsidize.
What is the election of section 125.7 that I have to certify and attest in the Canada Emergency Wage Subsidy (CEWS) application?
This section is asking if you as the employer (together with all required participants in the election under the CEWS program rules) has made one or more of the following elections or choices (referred to below as "elections") for revenue calculation for the period covered by this application (check all that apply):
- a joint election, along with each other member of the group that prepares consolidated financial statements, under paragraph 125.7(4)(a) of the Income Tax Act (revenue determined on a non-consolidated basis for members of the employer's group).
- a joint election, along with each other member of the affiliated group, under paragraph 125.7(4)(b) of the Income Tax Act (revenue determined on a consolidated basis for the employer's group).
- an election under paragraph 125.7(4)(c) of the Income Tax Act (joint venture election).
- a joint election, along with each person or partnership with which the employer does not deal at arm's length and from whom the employer earns all or substantially all of its qualifying revenue under paragraph 125.7(4)(d) of the Income Tax Act (non-arm's length revenue).
- an election under paragraph 125.7(4)(e) of the Income Tax Act (cash method).
- an election under subparagraph (b)(ii) of the definition "prior reference period" in subsection 125.7(1) of the Income Tax Act (prior reference period election).
- an election under subparagraph (a)(ii) or (b)(ii) of the definition "qualifying revenue" in subsection 125.7(1) of the Income Tax Act (election by registered charity or not-for-profit to exclude government funding).
What is the 10% Temporary Wage Subsidy for Employers (TWSE)?
The TWSE allows a business to reduce their payroll remittances by 10% of the paid employee wages during the period of March 18 to June 19, 2020. Over the 90- days period, the limit is $1,375 per employee and $25,000 per employer.
- Individuals (excluding trusts)
- Partnerships with members who are individuals (excluding trusts), registered charities, other partnerships eligible for the subsidy or eligible Canadian-Controlled Private Corporations (CCPCs)
- Canadian-Controlled Private Corporation (incorporated) eligible to the small business deduction or non-profit organizations, registered charities
- Have an existing business number & payroll program account with CRA on March 18; and
- Pay salary, wages, bonuses, or other remunerations to an employee in Canada.
It is a 10% subsidy, so if you have 2 employees that you pay $1,500 each, every two weeks, the subsidy will be $150 * 2 = $300
The maximum that you can receive per employee is $1,375.
The maximum amount of TWSE that an employer can receive is $25,000.
- You do not need to apply to the subsidy
- Continue to deduct income tax, CPP and EI from the salary, wages, bonuses, or other remuneration paid to your employees.
- Calculate the 10% subsidy that you would be eligible for.
- Reduce your current payroll remittance of federal, provincial, or territorial income tax that you send to CRA by the amount of the 10% wage subsidy that you are eligible for.
- If applying after June 19th, you will have to complete and submit a CRA self-identification form which will help CRA reconcile the subsidy with your payroll program account. This form is not yet available. If a business has not reduced their remittances, then CRA can credit your payroll program account after receiving the self-identification form.
Example: if you have two employees for a total bimonthly labour cost of $3,000 and you deduct $700 from their pay for the federal and provincial income tax, you will be able to remit to CRA only $400 and keep the remaining $300 for you as you have a subsidy of $300 (as calculated above).
The calculation is the following: Planned Income Tax remittance – 10% subsidy = New Income Tax remittance
You cannot however reduce your remittance of Canada Pension Plan contributions (CPP) or Employment Insurance (EI) premiums. You must continue to remit the CPP contributions and EI premiums you have deducted from your employees’ pay, as well as the employer’s share of the CPP contributions and EI premiums.
For more details, see the Frequently Asked Questions from CRA.
Is the 10% Temporary Wage Subsidy for Employers (TWSE) being extended past June 19, 2020?
No, at this time the government has not indicated that they will be extending this program. Government is still reviewing the CEWS consultations and COVID-19 support program changes are still under consideration at this time.
On April 16, 2020, Prime Minister Trudeau announced a new rent assistance program aimed at those with commercial properties for the months of April, May and June. This program will be provided through Canada Mortgage and Housing Corporation (CMHC) to offer a forgivable loan to voluntary eligible landlords with eligible tenants. This forgivable loan will lower rent by 75% for eligible small businesses that have been impacted by COVID-19 and will prevent them from being evicted from April to June.
Updates: On July 31, 2020, the government announced that CECRA will be extended into August. Businesses that qualified for April, May, and June will qualify for August.
On July 13, 2020, CMHC opened the July extension opt-in for the CECRA program. Property owners with small business tenants who experienced an average revenue drop of 70% or more for the months of April, May and June are automatically eligible to receive CECRA support in July. Property owners must apply for the July extension through the CECRA portal before September 14, 2020.
On June 30, 2020, government removed the requirement to claw-back insurance and provincial rent support from the CECRA forgivable loan amount to simplify the application process.
As of June 4th, 2020, landlords will no longer require that tenants provide them with their 2019 gross revenue for the CECRA application.
The application period is now open. Applications take about 2 weeks to be approved. Incomplete applications can take longer as they require more time to process, and more touchpoints with the application parties. Once the application has been approved for funding, CMHC provides the funding in 5-7 business days.
How will the Canada Emergency Commercial Rent Assistance (CECRA) be administered and distributed?
The CMHC has engaged MCAP and First Canadian Title (FCT) to deliver CECRA. You may be contacted by these organizations throughout the validation & funding process. Funds will be transferred to the property owner’s financial institution.
% of the Rent covered
Landlords/Property owners who own commercial real property that:
- Own commercial property located in Canada; and
- Are renting to one or more COVID-19 impacted small business tenants who are:
- Eligible small business tenants; or
- Eligible small business subtenants; or
- Eligible mixed usage tenants (residential components and multi-unit residential properties with commercial tenants); and
- Have entered or will enter into a rent reduction agreement & include a moratorium on eviction for the period of April, May, and/or June 2020 which will reduce the impacted tenant’s rent by at least 75%; and
- Have declared rental income on their income tax return (personal or corporate) for the tax years of 2018 and/or 2019.
Canada Emergency Commercial Rent Assistance (CECRA) is available to eligible property owners/landlords who do not have a mortgage.
A newly purchased or constructed property will still be considered eligible for the CECRA if all other program eligibility requirements are met. This includes having entered into a lease agreement with an eligible tenant on or before April 1, 2020.
Eligible businesses, nonprofits and charitable organizations who:
- Pay $50,000/month or less in rent;
- Generate no more than $20million in gross annual revenues, calculated on a consolidated basis; and
- Have temporarily ceased operations or
- have experienced a minimum of 70% drop in pre-COVID-19 revenues
Should I include CEBA, CERB, CEWS in my gross revenue calculation for the Canada Emergency Commercial Rent Assistance (CECRA)?
No, these programs are not to be included in your business’s gross revenue calculation.
If your business was operating between April-June 2019: compare your gross revenues from April, May and June 2020 to your gross revenues from April, May and June of 2019.
If your business was not operating between April-June 2019: compare your gross revenues from April, May and June 2020 to your gross revenues from January and February 2020.
How can I apply for the July extension of the Canada Emergency Commercial Rent Assistance (CECRA)?
The July extension opt-in is available as of July 13th.
If you have previously been approved for CECRA, you automatically qualify, and no additional documents are required. Property owners must log into the portal and opt-in for their impacted tenants before September 14, 2020.
If you haven’t yet applied for CECRA, you can apply for July as part of your entire application. These applications are still due August 31, 2020.
- Property address and any information pertaining to the program criteria, such as information on the Borrower/Landlord, number of tenants, rent rolls, etc.
- Signed tenant and property owner attestations
- Agreeing to comply with the program’s terms and conditions
Canada Mortgage and Housing Corporation (CMHC) reserves the right to request any additional reporting it deems reasonably necessary.
Can property taxes be included in the rent to be paid to the landlord to add into the Canada Emergency Commercial Rent Assistance (CECRA) application?
If they are stated to be owed to the landlord in a valid lease agreement, property taxes can be included in the expenses to be covered by CECRA.
CECRA funds must first and foremost reimburse the tenant for any rents paid over 25% of the monthly rent from April, May and June. Otherwise CECRA funds can be used for the following:
- Net rent / minimum rent / base rent (in a net lease)
- Regular monthly installments of operating costs (in a net lease)
- Regular monthly installments of property taxes payable to the landlord (in a net lease)
- Regular monthly installments of other additional rent amounts payable to the landlord — for example: maintenance costs, repairs, utilities, management fees, etc. (in a net lease)
- Gross rent (in a gross lease)
- Percentage of sales rent paid (if included in the lease arrangement)
CECRA funds cannot be used for the following:
- Property Damages
- Indemnity payments
- Payments arising due to tenant default / landlord enforcement
- Payments arising due to landlord exercise of self-help remedies
- Interest and penalties on unpaid amounts
- Fees payable for discrete items or special services (for example: fees to landlord for reviewing plans, supervising work, considering requests for consent, performing exceptional tasks at tenant’s request)
- Reconciliation adjustment payments
- Amounts required under the lease agreement to be paid separately by the tenant to 3rd parties (for example: property taxes, utilities, insurers)
- Costs of non-monetary obligations (e.g., repairs and maintenance)
Note: applying for insurance coverage does not make you ineligible for the program
Applications for the CECRA are now open to property owners and landlords. Click here to apply. The deadline to apply for the program is August 31, 2020.
If you have already submitted an application, the deadline to apply for the July extension is September 14, 2020.
What if a tenant or property owner cannot use e-signatures?
You can sign the documents and use scanned copies in the CECRA application.
Should I include CEBA in the Canada Emergency Commercial Rent Assistance (CECRA) application where it asks for “Total Property Owner proceeds from insurance or other non-repayable rental support program (if applicable)”?
CMHC considers CEBA to be a repayable loan and therefore it should not be included in this section of the application.
The support from Federal Canada’s COVID-19 economic response plan programs do not belong in this section. This section should only include business interruption insurance and/or other non-repayable commercial rent relief programs.
This section will no longer reduce funding from the CECRA forgivable loan, per the government announcement made June 30.
Landlords will need to provide in their application to CMHC:
- Tenant or Sub-tenant’s Attestations
- Property Owner’s Attestation
- The signed Rent reduction Agreement (sample)
- The signed Forgivable Loan Agreement (sample)
- Property information: address, type, property tax statement, latest rent roll for each property and the number of commercial units
- Property owner information: banking information (including bank statements), property owner contact information, business ownership details and any co-ownership information and contact details
- Tenant information: contact information, registered business name, lease area, and average monthly gross rent from April to June 2020
CMHC has mentioned that property owners will not be on the hook for the forgivable loan should their tenant have misrepresented their gross revenues. Tenant consequences will be determined on a case-by-case basis.
The agreement is to be retroactive to April 1, covering rent payments for April, May and June 2020. If you already paid your rent, the property owner can offer a rebate or a credit on future rent payments. If a property owner has already provided a discount for April that will count towards the program.
The renewal of a lease will not render a landlord or tenant ineligible for CECRA, providing all the terms and conditions of the program are kept.
Every situation is different, but the most important first step is to start the conversation with your landlord. Remember it is in everyone’s best interest to work an agreement out. Below are some tips to be considered to facilitate process:
- Communicate your situation with your landlord. Feel free to try using CFIB’s CECRA letter template to open a dialogue. You may want to include in the letter what other government programs, if any, you are eligible for.
- Think of other fair options that you might be able to put forwards to your landlord before speaking with them.
- Remind your landlord of your past good tenant history. This may make them less likely to want to start the 6 to 18 month search for a new tenant or risk having to rent their space at a lower pandemic price due to a lack of demand.
- Even if the landlord does not want to agree to CECRA, they may be open to other arrangements. Approach your landlord the same way that you would want any of your customers to approach you if they couldn’t pay and had an outstanding bill.
CECRA is not mandatory. You might consider:
- Contacting other tenants in your complex (if applicable) to appeal with a unified voice.
- Some provinces have one-time grants that might help with rent.
- Contacting your provincial government & local MP with a letter
- Sharing you situation with CFIB at [email protected] or our BR help line at 1-888-234-2232
Every situation is different, but the most important first step is to start the conversation with your tenant. Below are some tips to be considered to facilitate process:
- Provide communications to your tenants that, should they be suffering due to COVID-19, that they should be reaching out to you. Not all tenants will be aware of:
- Your willingness to participate in CECRA
- Use CFIB’s CECRA template letter, bearing in mind that every situation is different.
- Many businesses have lost significant revenue and do not always have access to other programs. If CECRA is not a good fit, then maybe think of another fair option to put forward. Please feel free to use CFIB’s letter template to open a dialogue
A business is eligible if they have temporarily ceased operation due to COVID-19, OR have experienced at least a 70% drop in pre-COVID revenues
Each location is eligible if:
- it has a gross rent of no more than $50,000,
- you have a valid lease agreement for each location, and
- you do not generate more than $20million in gross revenues annually
The revenue reduction requirement is entity specific. If your small business has multiple locations, you are required to determine the 70% revenue decrease test at the entity level as per your financial statements - not per property even though the application process is by property.
Can my landlord require me to renegotiate my contract, sign a lease extension and increase my rent when implementing the Canada Emergency Commercial Rent Assistance (CECRA)?
No. This is not in the spirit of the CECRA Program or legislation. CECRA cannot be used to leverage a future lease extension or increases in rent.
Are property owner’s being charged a fee to apply for the Canada Emergency Commercial Rent Assistance (CECRA)?
No, there is no fee to apply for CECRA. However, the CECRA application process may cost landlords time and resources. CMHC offers application help for landlords that can reduce this cost.
Can landlords charge administration fees for applying for the Canada Emergency Commercial Rent Assistance (CECRA) on behalf of their tenants?
Per CMHC, landlords should not charge administration fees as it is not in the spirit of the legislation or the CECRA program. Should you be a landlord with concerns about CECRA, CMHC can clarify any questions or concerns you might have.
Can landlords require me to sign an non-disclosure agreement before discussing Canada Emergency Commercial Rent Assistance (CECRA) with me?
It is not in the requirements of the CECRA program and, per CMHC, it is not in the spirit of the legislation or CECRA program. Should you be a landlord with concerns about CECRA, CMHC can clarify any questions or concerns you might have.
Can my landlord provide me a different rent reduction agreement document from what CMHC provides?
Yes, they can offer you a different rent reduction agreement, as long as they follow CMHC's required provisions.
What should I do if my Landlord is trying to strong-arm me into signing things or sending extra financial information for the Canada Emergency Commercial Rent Assistance (CECRA)?
Remember to give your landlord the benefit of the doubt. They are a business too. Keep in mind that having them consider applying for CECRA is already half the battle on your end. This program is still very new and landlords may not yet be caught up with all of the rules. Contact CMHC if your landlord is looking for clarification about the program.
If your landlord is in fact trying to strong arm you, please call our Business Counsellors at 1-888-234-2232.
My businesses started in March, and I have nothing to compare revenues to – am I eligible for the Canada Emergency Commercial Rent Assistance (CECRA)?
The CECRA program will not be available to businesses that opened on or after March 1, 2020.
Based on the current eligibility criteria, you would not qualify for CECRA. There must be a lease agreement in place between a landlord and a tenant.
If the landlord is a corporation and the tenant is another corporation, but both corporations are owned by the same person, are they eligible for the Canada Emergency Commercial Rent Assistance (CECRA)?
- there is a lease agreement in place;
- the value of the lease is comparable to market value; and
- all other eligibility requirements are met.
MCAP is one of Canada’s largest independent mortgage finance companies, with the tools to assess if a business’ rent is out of the norm. Such discrepancies will be escalated to CMHC for further investigation.
Note: businesses operating in an arm’s length situation are less likely to have an issue than those operating at non-arm's length.
The program is based on the amount of rent that each individual business tenant pays; so, in this case, you should qualify for CECRA.
You would be considered an eligible tenant as long as you have a valid lease agreement in place that is comparable to market value.
A formal agreement must be in place to be eligible, but the agreement can be month-to-month. The agreement must have been in place on or before April 1, 2020.
Yes, commercial tenants of mixed-use buildings are eligible (providing they meet all the criteria)
CMHC has confirmed that the 30% was an early policy requirement, but that it has since been removed.
Only Property owners can apply for CECRA; however, sub-landlords can benefit from CECRA.
Yes, providing you and your landlord meet all the other eligibility criteria.
You cannot double dip. The total rent relief cannot be more than 75%. If some relief has been provided through other mechanisms, like property tax relief, they will be counted towards the 75% reductions.
Many businesses are barely hanging on; this program could be what saves them. That said, you have a business to run as well and need to decide if it is worth rolling the dice on this program to keep your current tenant, or to try and find a new business to rent to, in an economy that will have a lot less potential renters.
We believe it will be considered taxable income, but we are waiting for confirmation from CMHC.
Yes, if you can afford it and if you and your tenant meet the eligibility criteria for CECRA. However, note that the applications opened May 25th and it could take a few weeks to get the money
Can willing tenants pay more than 25% of their rent if they can afford it and still be in compliance with the terms of the Canada Emergency Rent Assistance (CECRA)?
CMHC says no. The intent of the CECRA program is to support small businesses who are suffering hardship.
Yes, as long as they meet the eligibility requirements of the program.
A landlord is welcome to provide additional relief to their tenants beyond the 75% rent reduction defined by the program.
If a tenant misrepresents their losses, the program will consider this a breach of the terms of the loan and will enter collection with the burden on the tenant.
There will be no penalty for the landlord, and landlords will not be held responsible for paying the loan if their tenants misrepresented their revenues. This is reinforced in Clause 4 of the property owner attestation where it says:
“The Property Owner has no knowledge, acting reasonably and without investigation, of any falsehood or misrepresentation contained in the Tenant Attestation(s) submitted by Impacted Tenant(s) in connection with the Agreement.”
The 70% revenue reduction requirement can be achieved over the three month period by averaging the monthly revenue declines. It is not necessary for the 70% reduction to be achieved in each individual month.
Can landlords apply only for one month of Canada Emergency Commercial Rent Assistance (CECRA)?
Landlords cannot apply for only one month. The program is designed so that you apply for all three months (April, May and June) or none at all.
This will require ongoing communications with your landlord.
Some landlords may also put a notice on their website for their tenants to see.
No. As currently designed, the program requires the tenant and landlord to contribute 25% each and the government will provide the other 50% directly to the landlord.
In many provinces commercial eviction protections have been put in place. We continue to push for remaining provinces to implement protections for commercial tenants.
Provinces with eviction protection in force:
- Nova Scotia (for as long as the province is under public health orders)
- Saskatchewan (for as long as the province is under public health orders)
- British Columbia (until the end of June)
- Manitoba (until August 31, 2020)
- Alberta (until August 31, 2020)
- Ontario (until August 31, 2020)
Provinces that have announced protection:
- Quebec (legislation under development)
The landlord and tenant must come to a mutual agreement on this. Rebates may be provided or discounts on future rents.
The federal government will share the program funding costs with the provinces and territories 75%/25%. The total funding cost is estimated to be $2,296 million.
B.C. will be contributing an estimated $80 million. See more information here.
Alberta expects to commit up to $67 million. See more information here.
Nova Scotia’s anticipated contribution will be $9.1 million. See more information here.
Ontario government is contributing $241 million. See more information here.
Quebec government is contributing $280 millions. See more information here (French only).
Please note, that CECRA is one program offered through CMHC, not multiple programs tailored to each province. As more provinces provide us with information, we will add the links in this section.
CECRA does not apply to properties owned by the federal, provincial, or municipal governments. However, there are certain exceptions, including airports, post-secondary institutions, hospitals, First Nation and indigenous organizations and governments, and crown corporations (must be deemed eligible by CMHC).
Can municipal landlords apply for Canada Emergency Commercial Rent Assistance (CECRA)?
Municipal landlords are generally not eligible for the program, however, there are some exceptions (i.e. sub-landlords on a long term lease and specific eligible crown corporations).
If I don’t have a written lease agreement in place before April 1st, am I still eligible for the Canada Emergency Commercial Rent Assistance (CECRA)?
A verbal agreement is not considered a valid and enforceable agreement in regards to CECRA. A legally binding lease agreement must be in place on or before April 1, 2020, to be considered eligible. When in doubt, our recommendation is to still try to apply for CECRA through your landlord.
Are tenants’ 2019 gross revenues an application requirement for the Canada Emergency Commercial Rent Assistance (CECRA)?
This information is no longer required for the application.
Can landlords ask for a tenant’s business financials before applying for the Canada Emergency Commercial Rent Assistance (CECRA)?
Landlords do not need business financials to apply for CECRA. It is not in the spirit of the legislation or CECRA program to ask for them.
What happens if my lease expires before August 31st, am I still eligible for the Canada Emergency Commercial Rent Assistance?
Normal course renewals/extensions do not preclude a tenant from benefiting from the program.
If the lease expires before August 31, 2020, the tenant may still be eligible for the CECRA program, provided the tenant and landlord are each committed and will remain committed to the month to month tenancy pursuant to the terms of the lease until at least August 31, 2020.
In the event that a lease expires before August 31, 2020 but the tenant has committed to entering into a new lease to continue to operate its business then such a tenant may be eligible for the program on an exceptional basis. The tenant must provide the program administrator with a copy of the signed lease for the new location and any other requested documents to evidence that the tenant is committed to continue operating its business in a new location.
Are month to month leases eligible under the Canada Emergency Commercial Rent Assistance (CECRA)?
Can tenants or landlords repay parts of the loan early if they can afford it?
There is no repayment of the loan required; the loan is fully forgiven provided that there is no event of default (Section 9 of the Forgivable Loan Agreement).
Can a Landlord receive CEBA and the CECRA?
Should CEBA be included in the Canada Emergency Commercial Rent Assistance (CECRA) proceeds from other rental support programs if it was used to pay rent?
No, CEBA should not be considered a rent relief program and does not need to be included.
Does the gross rent amount for the Canada Emergency Commercial Rent Assistance (CECRA) include GST/HST?
GST and HST are excluded when determining gross rent.
Is GST/HST applicable to the forgivable loan amount received by the landlord through the Canada Emergency Commercial Rent Assistance?
HST is not included in gross rent/covered by CECRA. HST is only due on the reduced amount of rent agreed to (up to 25%). Eligible tenants are able to recover all or part of the HST on rent that is paid to the landlords.
What should a rent roll look like for the Canada Emergency Commercial Rent Assistance (CECRA)?
Please see the provided CMHC rent roll template.
How should a business calculate their revenues for the Canada Emergency Commercial Rent assistance (CECRA) if they have recently amalgamated two businesses and revenues were kept separate until the end of April?
In this circumstance they would consider the combined results from both businesses in assessing their qualification for CECRA for both the $20 million gross annual revenue criteria and the financial hardship test of 70% reduction in revenue.
I am a property owner with more than one property. Do I need to create multiple Canada Emergency Commercial Rent Assistance (CECRA) logins to apply?
To ensure privacy of information, only one registered account can be created with a specific email/telephone number. A registered account may hold up to 100 applications per registrant and 50 tenants per application.
If you consolidated statements then the tenant would use revenues reported for the group level of companies.
Where can I find CMHC’s most up to date FAQ on the Canada Emergency Commercial Rent Assistance (CECRA)?
FAQs for the CECRA program can be found at the following two links:
Is there any way to apply for the Canada Emergency Commercial Rent Assistance (CECRA) without an email address or mobile phone that can receive a text message?
There are no alternatives at this time. CMHC is currently working on alternative processes.
How can I contact CMHC regarding the Canada Emergency Commercial Rent Assistance (CECRA)?
- E-mail [email protected]
- The CECRA application line is 1-833-610-0515
- The general program inquiries line is 1-800-668-2642
Note that both of these lines are experiencing high call volumes (currently averaging a wait time of 1:20mins), and you may not be able to get through. CMHC has recommended that you leave a voicemail and that they will call you back.
We have raised these issues with CMHC; please let us know if you experience problems contacting CMHC.
If you have lost income because of COVID-19, the CERB will provide you with temporary income support, whether you are EI-eligible or not.
This benefit is available from March 15, 2020, to October 3, 2020. The last day to apply is December 2, 2020.
If you are not eligible for EI, CRA CERB will provide you with a flat rate of $2,000/4 weeks for up to 16 weeks.
If you are eligible for EI, Service Canada EI-CERB will provide you the below options:
Option 1. $1000/2 weeks for up to 16 weeks; or
Option 2. $2000/4 weeks for up to 16 weeks
Yes, the benefit is taxable, but you will receive the $2000 upfront. When the time comes for you to prepare your income tax return for the year 2020 you will need to claim it as income.
- You must reside in Canada and have a valid social insurance number
- You are 15 years of age or older at the time of application
- You are earning employment income of $1,000 a month or less for reasons related to covid-19, or because you are unable to work due to illness, or because you lost your employment for other reasons beyond your control
- You have not quit your job voluntarily
- You are not receiving nor have you applied for the CERB from the Canada Revenue Agency nor are you receiving Employment Insurance benefits for the same benefit period
- You have earned a minimum of $5,000 in income within the last 12 months or in the 2019 calendar year from one or more from the following sources:
- Employment income
- Self-employment income
- Dividend, under certain conditions.
Application portals and phone lines are open now. CERB will be available until October 3, 2020.
- EI-eligible applicants should apply through the E-Service Canada portal.
- Non-EI-eligible applicants should apply through the CRA My Account.
To avoid overloading the CRA portal, CRA has recommended that the day to apply will depend on your month of birth. If you were born in:
- January, February and March, you can apply starting April 6
- April, May and June, you can apply starting April 7
- July, August and September, you can apply starting April 8
- October, November and December, you can apply starting April 9
In order to receive your benefit faster, make sure that you have signed-up for direct deposit with CRA and that the information you provided is up to date.
More details here.
There are three ways to apply:
- Online with E-Service Canada portal (recommended for those eligible for EI)
- Online with CRA My Account (recommended for those non-eligible for EI)
- Over the phone with an automated phone service:
- If you have Portal Account issues:
- If you have filed tax returns prior to 2018:
- If you have never filed a tax return before:
- If you have Portal Account issues:
Note: Ensure that you have your SIN, your postal code, and that you know the period that you are applying for when you call.
The fastest way to apply to CERB would be to call 1-833-966-2099.
You will have to re-apply for each claiming period.
More details here.
Service Canada and the Canada Revenue Agency (CRA) deliver this benefit jointly so if you have already applied for Employment Insurance, you do not need to re-apply.
The CERB is available in 4-week periods:
|1||March 15, 2020 - April 11, 2020|
|2||April 12, 2020 - May 9, 2020|
|3||May 10, 2020 - June 6, 2020|
|4||June 7, 2020 - July 4, 2020|
|5||July 5, 2020 - August 1, 2020|
|6||August 2, 2020 - August 29, 2020|
|7||August 30, 2020 - September 26, 2020|
Applicants will begin to receive their CERB payments within 10 days of their application.
The Federal Government has announced that if you are earning less than $1000 per month, you can work and claim CERB. Anyone earning more than $1000 per month will not be eligible for CERB.
First 4-week eligibility period: if you earn more than $1000 (gross) in the form of employment and/or self-employment income over two consecutive weeks during the 4-week period which made you eligible for the CERB, you will have to repay the $2000 you received from CERB.
Second 4-week eligibility period: if you earn more than $1000 (gross) in the form of employment and/or self-employment during the 4-week period, you will have to repay the $2000 you received from CERB.
Yes, if you have seasonal employment and can’t find a job due to COVID-19 you are eligible for CERB provided you meet all the eligibility criteria.
The federal government announced that anyone whose EI claim ran out after January 1, 2020, will be eligible for CERB.
You have the option to return or repay your CERB payment if you return to work sooner than anticipated, or if you applied but later realised you’re not eligible.
If you received CERB by cheque and have not yet cashed/deposited it, you can return it to the address below.
If you no longer have the cheque, or you received direct deposit, you can mail the repayment to the CRA:
- Make the payment out to Receiver General for Canada”
- Indicate it is for Repayment of CERB”
- Include your Social Insurance Number (SIN)
- Mail the payment to:
- Revenue Processing – Repayment of CERB
- Sudbury Tax Centre
- 1050 Notre Dame Avenue
- Sudbury, ON, P3A 0C1
As an employer, you are required to file an ROE whenever an employee experiences or anticipates an interruption of earnings. This is generally 7 consecutive days of no earnings or if the employee has fallen below 60% of their regular weekly earnings for reasons like illness, pregnancy or caring for an ill family member. All to say, an employer still needs to submit an ROE for their employee to Service Canada (the fastest way to do this is through ROE web, not Paper ROEs).
Employees applying for CERB do not need their ROE to apply to CERB.
Employees applying for EI, can use their previous 12 month pay stubs to create an interim ROE. This will allow them to start and process their ROE while waiting for employers to submit their ROE.
Please note that all EI applications received after March 15th are automatically being treated as CERB applications.
If an employee quits their job/takes a leave of absence voluntarily, they will not be eligible for the CERB. This program is designed for employees who are no longer able to work due to COVID-19. People will have to self-attest multiple times during the CERB payment period, and post-mortem audits may occur.
In Quebec, to compensate for the wage gap between people who receive CERB and essential workers on low incomes, the government introduced the Incentive Program for the Retention of Essential Workers (PIRTE).
Yes, if they meet the eligibility criteria above.
This will be done purely by attestations. Government will reserve the right to ask to see bank statements, check CRA T4s and T4Sums, and post-mortem audits may occur.
Yes. For example, in Quebec you can receive the temporary aid for workers from the Quebec government and the CERB from the federal government.
You are eligible for EI if you meet the regular eligibility criteria. You are eligible for the CERB if you have a valid social insurance number and meet all the criteria.
No, applicants cannot receive EI regular or sickness benefits and the CERB at the same time but:
- Those who are already receiving EI regular benefits will continue to receive the same benefits until the end of their benefit period. If these benefits end before October 3, 2020, they may then apply for the CERB if they meet the eligibility requirements.
- EI claims of those who became eligible for EI regular or sickness benefits March 15th onward will be automatically processed through the CERB. After 4 months of receiving the CERB, they will still be able to apply for their regular EI benefits if they are still unemployed. Receiving the CERB first will not affect their eligibility to receive EI benefits after.
Yes, you are eligible for CPP and CERB at the same time. However, you must meet all the other eligibility criteria for CERB.
Agents are available to speak to about CERB or CRA My Account at 1-800-959-8281. You can also check out the CERB website.
What if I know my employee is abusing the Canada Emergency Response Benefit (CERB)?
Report a lead on suspected tax or benefit cheating in Canada by providing key identifiers and factual details to the CRA by phone, mail, fax or submitting a lead online.
If you are a farmer or part of the agri-food sector, the below are some government programs and changes that may affect you:
- There’s been an increase in Farm Credit Canada, which provides credit to farmers and the agri-food sector.
- Farmers with an outstanding Advance Payment Program (APP) loan due on or before April 30 will have an additional six months to repay the loan.
- Farmers who still have interest-free loans outstanding will have the opportunity to apply for an additional $100,000 interest-free portion for 2020-2021, as long as their total APP advances remain under $1 million.
- The Government of Canada will provide support of $1,500 per temporary foreign worker to help pay the cost of the mandatory 14-day isolation period required of all workers arriving from abroad. Applications will be made through the Ministry of Agriculture website – more details to come.
- The launch of a $100M Agriculture and Food Business Solutions Fund through Farm Credit Canada
What is the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)?
The Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP) is a $50-million program designed to help employers who employ temporary foreign workers with the extra cost associated with the 14 day isolation period required under the Quarantine Act.
Eligible employers can receive a non-repayable contribution of up to $1,500 per temporary foreign worker.
Funding will be available until the $50-million has been distributed and as long as the order under the Quarantine Act is in force and the isolation protocol has to be followed.
Who is an eligible employer under the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)?
Eligible employer are:
- Canadian employers in the following sectors
- fish harvesting
- food production and processing
- comply with the mandatory 14-day isolation protocol and other public health requirement
- comply with the regulation of the Temporary foreign workers Program
- comply with regulations regarding wage and employment conditions from the program they use to hire their temporary foreign workers
What are the supported incurred incremental costs admissible under the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)?
- Wages and benefits of the temporary foreign workers during the mandatory 14-day isolation period
- Off site accommodations during the mandatory 14-day isolation period
- Transportation to and from off site accommodations required during the mandatory 14-day isolation period
- Food or a food allowance during the mandatory 14-day isolation period
- Health and safety supplies such as gloves, masks, hand sanitizer, disinfectant cleaners and soaps required for the mandatory 14-day isolation period
- Other incremental costs directly associated to the 14 day mandatory isolation period imposed on temporary foreign workers under the Quarantine Act
It is possible to claim retroactive cost. Retroactive costs are expenses that were made on or after March 26, 2020. In order for those cost to be reimbursed, they must be:
- approved or deemed eligible
- incurred during or for the purpose of the mandatory 14 day isolation period
How can I apply to the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)?
Eligible employers can download the application form here. Only one form is necessary to request funds for all of your temporary foreign workers.
Application must be submitted before June 30, 2020.
You can send the application by email to: [email protected]
I was approved for funding with the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP), what are the next steps?
- You will need to sign the Contribution Agreement. This document includes information such as the maximum amount you can receive. This will be accompanied by a step-by-step guide on how to complete a claim for reimbursement.
- Once the 14 day isolation period is over, submit documentation supporting your claim. You can submit more than one claim if you have workers arriving on different dates or you can wait and submit all you claim at once.
Claim must be submitted by August 14, 2020
- For every worker, you will be required to provide their Unique Client Identifier (UCI). The UCI can be found on the worker’s work permit.
Once all the documentation is received and processed by Agriculture and Agri-Food Canada, you will receive a cheque that covers the whole amount of the claim. Individual cheques will be sent for each requested claim.
Can I receive money for all my temporary foreign workers under the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)?
In order to be eligible, workers must have arrived in Canada between March 26, 2020, and June 30, 2020.
Can I still receive the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP) if I received financial assistance from a provincial or territorial government to help cover these costs?
Your MISTFWP contribution may be reduced.
Can I still receive MISTFWP if my incremental costs per employee is less than $1,500?
Yes, however should the $1,500 exceed the incremental costs per employee your MISTFWP contribution may be reduced.
How can I make a change or withdraw my application to the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)
If you need to make a change to your application, you need to contact the program. Do not resubmit a claim.
If you need to withdraw a claim, you need to contact the program.
How can I contact the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)?
Agriculture and Agri-Food Canada
Mandatory Isolation Support for Temporary Foreign Workers Program
1341 Baseline Road
Tower 7, 7th floor
Ottawa ON K1A 0C5
Email: [email protected]
The federal government announced $470million in support to fish harvesters, including:
- The Fish Harvester Benefit - income support for up 75% of losses for harvesters experiencing a 25% drop in revenue, up to $10,000. Available to anyone who can’t access the 75% Canada Emergency Wage Subsidy.
- The Fish Harvester Grant - non-repayable grants up to $10,000 to owners of fish harvesting businesses.
- Amendments to employment rules next year to allow workers to apply for EI based on the income of previous years.
More details are to come.
Work-Sharing (WS) is a program that helps prevent layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The program provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work week while the business recovers.
Employees, their employers and Service Canada negotiate a Work-Sharing agreement. Employees must also agree to a reduced schedule of work and to share the available work over a specified period of time.
If you still have questions about how this will work with your business specifically, e-mail [email protected].
- Have you been in business in Canada year-round for at least 1 years?
- Are you a private business, a publicly held company or non-for-profit organization?
- Can you show a decrease in business activity of approximately 10%?
- Are you employees eligible to receive Employment Insurance benefits?
- Will your employees agree to a reduction of their normal working hours?
- Do you have a minimum of two employees?
- Can you wait 10 days to negotiate your Workshare agreement?
If all the above are a yes, then Apply for Work-Sharing.
Email the below two items to Service Canada to start the negotiation process for your workshare agreement (this will be unique for every location or work-sharing unit.)
Note: Service Canada must receive the package at least 10 days before the requested start date of the Work-Sharing Agreement.
- an Application for a Work-Sharing Agreement ESDC-EMP5100 (including attachments and signatures of both employer representative(s) and employee representative(s)
- Attachment A (a list of employees included in the Work-Sharing unit) available in PDF (8 KB) and Excel (36 KB) format)
Atlantic Provinces - [email protected]
Quebec - [email protected]
Ontario - [email protected]
Western Canada and Territories - [email protected]
For more information please read the Work sharing Applicant Guide.
COVID update: Those who have implemented work-sharing in the past will have the 30-day negotiation/application period waived. If you have signed a work-sharing agreement before please consult the temporary special measures to see if you are eligible for the COVID-19 extension of the Work-Sharing agreements from 38 weeks to 76 weeks.
Since the people, location and agreement will be different for each one, you will need separate work-sharing agreements for each location/unit.
Service Canada has mentioned that these programs will not be available at this time. This is because they are pushing out as many CERBs as possible.
Employees on CERB may receive employment income of up to $1000/CERB period. This could be provided by an employer in the form of a top up.
Note: this program is no longer open for applications.
The Canada Summer Jobs Program (CSJ Program) is an initiative to help students (15-30 years of age) gain quality work experience and to encourage businesses, who would normally not have the financial capability, to hire a student worker by subsidizing their wage.
I have applied to the Canada Summer Jobs program. How do I find out if my application was approved?
- Check the status of your application on your GCOS account
- Check the list of approved businesses on Canada Summer Jobs 2020 : Employers that have been approved for funding. If you have not received an email response about the decision of your application then you will not be on this list.
Please keep in mind that businesses who applied in February received a response May 15. Applications are looked at individually and expectations timeframes cannot be provided for those who applied in May.
I have not applied to the Canada Summer Jobs Program. Can I still apply?
Unfortunately late applications/invitations are now closed. Those who would like to use a similar program like the Student Work Placement Program (WIL Digital Subsidy), Mitacs and the Business + Higher Education Roundtable (BHER).
What other Student Workplace programs exist through which I would be able to receive a subsidy?
- WIL Digital: https://www.wil-amt.digital/en/
- Mitacs: https://www.mitacs.ca/en
- Business + Higher Education Roundtable (BHER): http://bher.ca/
- Co-operative Education and Work-Integrated Learning Canada (CEWIL Canada): http://bher.ca/news/bher-and-cewil-announce-grant-funding-to-create-new-work-integrated-learning-opportunities
- Private and public sector employers can now receive up to 100% of the provincial or territorial minimum hourly wage for each employee instead of the previous 50%.
- Employers will be allowed to hire staff on a part-time basis
- Agreed upon contract can be extended to February 28, 2021
The WIL program, offered by the Information and Communications Technology Council, helps employers grow their business by providing up to $7,000 in financial assistance to hire post-secondary students from a publicly funded Canadian post-secondary institution (this includes universities, colleges and CEGEP). These students can be full-time or part-time, vary in their year of study and be from any discipline (including Arts, Humanities, Social Sciences, STEM, Business, etc.).
- 50% of the student’s salary, up to $5000; or
- 70% of the student’s salary, up to $7000, if the student falls into an under-represented group
The WIL subsidy can be used in conjunction with wage subsidies offered by the provinces and territories.
- Registered businesses
- Non-for-profit organizations
- Post-secondary institutions in Canada
- Businesses creating a new student position for this program
For more information please see the WIL Digital website.
- $675 million in RRRF loans
- $287 million in Community Futures Development Corporations programs which target small businesses and rural communities across the country
Program details will vary in each Regional Development Agency and the application process is available now. Some RDAs programs can be used to supplement other Government COVID-19 relief while other RDA programs are only available to those who were denied by the Government COVID-19 relief. Please keep reading to find the RDA programs that apply to you.
What are the 6 different Regional Development Agencies (RDA)?
- Atlantic Canada Opportunity Agency (ACOA) - NS/NB/PE/NL
- Canada Economic Development for Quebec Regions (CED) - QC
- Canadian Northern Economic Development Agency - YT/NT/NU
- FedDev Ontario (Southern Ontario) - ON
- FedNor (Northern Ontario) - ON
- Western Economic Diversification Canada (WD) - AB/BC/MB/SK
Yes, however you must apply for other federal relief measures first, such as the Canada Emergency Business Account (aka CEBA/40K loans), the 75% wage subsidy, and the Canada Emergency Commercial Rent Assistance (CECRA) before applying to the RRRF.
Businesses and organizations who have either:
- Applied for other federal relief measures but were unsuccessful; or
- Accessed other federal relief programs but are still experiencing financial hardship. For these applicants only eligible costs for which the applicant has not received any other assistance may be covered by the RRRF
Note: Critical sectors to the resilience and survival of Atlantic Canada’s economy (i.e. manufacturing, ocean industries, clean growth technology and tourism) may be given priority.
Actual amounts of potential assistance under the RRRF will be discussed on a case-by-case basis with a ACOA program officer. This assistance is to cover cash flow for up to 6 months. Only eligible costs that are not covered by any other assistance for emergency relief will be considered to be covered under RRRF.
Yes, the RRRF is meant to assist with eligible costs that have not been assisted by other emergency relief. Eligible costs will be determined on a case-by-case basis and detailed in your contribution agreement. RRRF Eligible costs that can be requested by an applicant are:
- Rent or lease of equipment and machinery
- Salaries and benefits
- Property taxes
- Cleaning Supplies
- Additional safety measures
- Bank interest charges
- Interest portion of loan payments
- Office supplies
- Vehicle operating expenses
- Professional fees
- Other fixed overhead costs
- One time stabilization expenditures
Eligible Speak with an ACOA program officer to discuss your particular circumstance.
- Download the RRRF online application form
- Upload the below either online (fastest method of application) or by mail
- Application for Financial Assistance Regional Relief and Recovery Fund
- Externally prepared financial statements for years 2018 & 2019
- Projected cash flow for six months
- Copy of articles of incorporation (if applicable)
- All other documentation relevant to your request
- If you are uncertain if the RRRF is right for you speak to an ACOA program officer:
- If you are a current ACOA client, please contact your program officer directly
- All other businesses and organizations, please call 1-800-561-7862 or e-mail [email protected]
Applications will be assessed as they are received. Ensure that your application is properly completed to be processed quickly. Incomplete applications may prevent ACOA from considering your application. Speak to ACOA before submitting an application to ensure the process goes smoothly. Help with fillable forms is also available.
Applications are open now online. They will be accepted and assessed until March 31, 2021 or until the funding runs out, whichever comes first.
While every effort will be made to provide RRRF funding to as many businesses as possible, demands for funds may exceed the amount that is available.
Once you are approved for the program, and you have accepted the offer, ACOA will give you an advance of half of the amount. The rest of the funding will be provided after you submit eligible claims to ACOA.
Yes, it is repayable. There is a 2-year “grace” period which ends on December 31, 2022. Payments will start on January 1, 2023 and the full amount must be repaid by December 31, 2025.
This will be determined on a case-by-case basis, but you may be eligible for amounts comparable to the federal relief already announced. Speak with an ACOA program officer to discuss your particular circumstance.
Eligible costs will be determined on a case-by-case basis, and these costs will then be detailed in your contribution agreement.
Canada Economic Development for Quebec Regions (CED) will distribute a RRRF of $211 million for Quebec.
- $140million in financial support for vulnerable SMEs ineligible for measures already in place and facing cash-flow problems
- $71million to support SMEs and non-profit organizations by providing capital and technical assistance in rural communities that are served by Community Futures Development Corporations and Business Development Centres.
The CED will provide two kinds of financial assistance based on the SMEs profiles and needs:
- Loan up to $40,000
- Loan for over $40,000
Yes, but you must have applied & have received a response from the below support measures that are applicable to you under Canada’s COVID-19 Economic Response Plan :
- Canada Emergency Business Account (aka CEBA/40K loans)
- Canadian Heritage Emergency Fund for Culture
- Financial assistance for Aboriginal SMEs
- Canada’s Emergency Wage Subsidy
- NRC IRAP Innovation Assistance Program (DAP)
The Quebec RRRF program provides payroll and working capital support to those who are not eligible for other support measures under Canada’s COVID-19 Economic Response Plan. Should you be receiving these support measures, but still require additional assistance your applications will not be processed on a priority basis.
- Non-profit organizations
- Business support organizations
- Indigenous organizations
- registered/based in Quebec; and
- suffering a negative impact related to COVID-19 (i.e. revenue loss, layoffs, cashflow pressure, etc.); and
- aware of their support measure applications under the Canada COVID-19 Economic Response Plan having being accepted or refused
Then determine which profile best matches your situation.
- Businesses with revenues of $250,000 and more, including:
- Manufacturing businesses
- Value-added services (e.g., sectors creating jobs or contributing to technology transition, the green economy or business resilience)
- Food processing (primary, secondary and tertiary processing)
- Businesses from all industries, including tourism, requiring over $40,000 in funding
- High-potential start-ups in the manufacturing and value-added services sectors
If this profile matches your circumstances, you must complete the pre-eligibility questionnaire. If you are eligible, you will then be invited to complete an application for financial support.
- Retail businesses and local services
- Social economy enterprises (all sectors)
- Artisanal production and specialty local food products
- Tourism industry projects requiring funding of $40,000 or less
- Businesses with less than $250,000 in sales (all other sectors)
- Self-employed workers (all sectors)
- Start-ups other than in the manufacturing and value-added services sectors
- Businesses matching Profile 1, but that are already clients of a SADC/CAE
If this profile matches your circumstances and:
- you are in a metropolitan area, please call 1-800-561-0633
- you are outside a metropolitan region contact your SADC or CAE
If you’re not sure which profile best suits you, please call 1-800-561-0633 to speak with a CED advisor.
You can also Check your pre-eligibility using CED’s questionnaire here.
If you do not qualify for other federal relief measures, you must determine which profile best represents your situation. Please read both profile criteria before determining which is the best fit for you:
- Ensure that you have applied for the other government COVID-19 relief measures that apply to your business. Keep your evidence of rejection.
- Check your eligibility
- Complete the online Request for financial assistance RRRF (once opened you have 12 hours to complete it)
- Attach in 6 documents :
- Evidence of rejection from any federal emergency measures
- Financial statements for the last year and the most recent interim
- Recent statement from your financial institution
- Void cheque or direct deposit validated by your Canadian financial institution
- Copy of the delegation instrument(if applicable)
- Formal or informal notice indicating that the customer could be or is in violation of an environmental law or regulation (if applicable)
Applications are being accepted now, and can be made through the CED’s website.
Financial aid will generally not exceed $40,000; however, SMEs and non-profits in the manufacturing sector, or other value-added services, may qualify for more than $40,000. Amounts will be determined based on need, and will have different repayment terms.
Businesses looking for less than $40,000:
- If 75% of the contribution is repaid by December 31, 2022 (based on a predetermined payment schedule), the remaining 25% becomes non-repayable.
- If 75% of the contribution is not repaid by December 31, 2022, then the entire contribution is considered repayable over a 3-year period starting January 1, 2023
For businesses looking for more than $40,000:
- The entire amount is considered repayable over a five-year period, based on a predetermined payment schedule, starting January 1, 2023.
The funding can be used to stabilize SMEs and non-profit organizations, and to mitigate the effects of COVID-19. Eligible costs include:
- Equipment and machinery rental or leasing
- Wages and benefits
- Property taxes
- Professional fees
- Other fixed overhead costs and one-time stabilization costs
If you SME is based in Quebec, please call 1-800-561-0633 or email to [email protected].
In Southern Ontario, the regional Relief and Recovery Fund (RRRF) will be administered by FedDev Ontario.
- $213 million for SMEs facing financial pressures
- $39.4 million for rural businesses in the form of capital and business support; delivered by southern Ontario’s Community Futures Development Corporations.
You must either be disqualified from accessing federal relief measures, or have applied to the federal relief measures and been declined, in order to access the RRRF.
Canadian or provincially incorporated businesses, co-operatives, Indigenous-owned businesses located in southern Ontario who
- have 1 to 499 full-time equivalent employees;
- are facing funding pressures with fixed operating costs due to COVID-19;
- were a viable business before the pandemic, and plan to continue the business or resume operations; and
- have already applied to the federal government’s emergency credit relief measures for which they are eligible.
Applications are open now, using the Applicant Toolkit available on the FedDev website.
Applications can be made using the application form. It is strongly recommended to consult the program guidelines and the frequently asked questions before completing your application. If you have questions, you can contact FedDev at 1-866-593-5505.
There are two funding options:
Option 1: Up to $40,000 in a conditionally repayable contribution (interest-free loan)
- No payments required until December 31, 2022, but can opt to make payments between January 1, 2021 and December 31, 2022
- If 75%, or up to $30,000 is repaid by December 31, 2022, then the remaining 25%, up to $10,000 is forgivable.
- If 75% is not repaid by December 31, 2022, the balance owing converts to a 3-year loan, with a fixed repayment schedule beginning January 1, 2023 with no forgivable portion
- Full amount must be repaid by December 31, 2025.
Option 2: Up to $500,000 unconditionally repayable contribution (interest-free loan)
- Interest-free, fully-repayable loan
- 100% must be repaid
- No payments required until December 31, 2022
- Fixed payment schedule begins January 1, 2023
The loan amount will be determined based on:
- The funding option selected
- Eligible operating costs
- Whether any other federal relief measures have been accessed, and in what amounts
- Applicants ability to repay the loan
The loan funds cannot be used for:
- Monthly mortgage and loan payments;
- New capital expenditures;
- Refinancing of existing debt;
- Costs of amortization or goodwill;
- Purchase of land or buildings; or
- Any costs deemed not reasonable or not directly related to a business’ fixed operational expenses.
In Northern Ontario, the Regional Relief and Recovery Fund will be administered by FedNor Ontario.
Incorporated companies, corporations, co-operatives, Indigenous organizations (such as Indigenous/First nation/Métis Settlement owned businesses) that:
- Are located or operating in Northern Ontario;
- Don’t qualify for, or have been declined for other federal relief measures;
- Employ between 1 and 499 full-time equivalent employees; and
- Are negatively impacted by COVID-19.
Non-profit organizations, for example Chambers of Commerce, Industry Associations and Tourism organizations that:
- Are based in Northern Ontario and/or offer support to businesses in Northern Ontario; and
- Carry out commercial activities; and
- Are able to support SMEs regarding COVID-19
- Sole proprietorships
- Businesses in the following sectors:
- Food and Beverage
- Professional Services
Businesses in these sectors should contact the Community Futures Development Corporation in Northern Ontario.
The application period opened on May 13, 2020, and will remain open until all the funds are allocated.
The maximum amount is $250,000.
- SMEs will receive repayable or conditionally-repayable loans.
- Non-profit organizations will receive non-repayable loans.
Loans to SMEs will be repayable, or conditionally-repayable, with no interest or security required.
- Payments will be made in installments over a maximum of 5 years from the date the first payment was issued.
- A payment moratorium is available until December 31, 2022; however
- SMES that receive $40,000 or less, and who repay at least 75% before December 31, 2022, will have the remaining 25% (up to $10,000) forgiven.
- The full balance must be paid by December 31, 2025
- Loans to non-profit organizations are non-repayable.
Eligible costs are retroactive to March 15, 2020, and include:
- Commercial Rent / Mortgage (rent is only eligible if not supported by the Canada Emergency Commercial Rent Assistance program);
- Rent or lease of equipment and machinery;
- Salaries and benefits (only eligible if not eligible or rejected through the Canada Emergency Wage Subsidy);
- Property taxes;
- Cleaning supplies;
- Additional safety measures;
- Bank interest/charges and loan repayment (interest);
- Office supplies;
- Vehicle operating expenses;
- Professional fees;
- Insurances, and
- Other fixed overhead costs and one-time stabilization expenditures.
Costs incurred before March 15, 2020 are ineligible. Other ineligible costs include:
- Land and buildings acquisition;
- Entertainment expenses;
- Salary bonuses and dividend payments;
- Refinancing of existing debts;
- Amortization or depreciation of assets;
- Federal and provincial income taxes, GST (recoverable portion), taxes or surtaxes on excess profit;
- Provisions for contingencies;
- Lobbying activities or commissions paid to consultants to secure funding; and
- Donations, dues and membership fees.
The RRRF will be provided in two different ways:
- A loan up to $40,000 where repayment of 75% of the contribution before December 31, 2022 will result in forgiveness of 25% (up to $10000). This is for businesses not eligible to the Canada Emergency Business Account or RRRF - Community Futures Stream
- A loan greater than $40,000 up to a maximum of $1,000,000 where this contribution is fully repayable to businesses that can demonstrate a meaningful contribution to the western Canadian economy, and experiencing liquidity issues. These companies may or may not have accessed other Government of Canada relief programs, but need more funding to mitigate cash flow pressures.
- RRRF Funding up to $40,000
- Were refused for the Canada Emergency Business Account (CEBA)
- Are not eligible for the RRRF - Community Futures Stream
- Are not a sole proprietor
- Are not non-for profit organizations
- Have fewer than 500 full-time employees
- Are located in Western Canada (BC, AB, SK and/or MB)
- Are not in an area serviced by a CF office
- Were operational as of March 1, 2020
- Have suffered financially because of COVID-19
- Intend to continue operations in Western Canada
Examples of businesses that are eligible to apply are pre-revenue firms and businesses who pay workers in dividends or have independent contractors.
- RRRF Funding over $40,000
- Are not a sole proprietor
- Are not a not-for-profit
- Have less than 500 full-time employees
- Are incorporated to operate in Canada
- Were operational as of March 1, 2020
- Are located in Western Canada (defined as British Columbia, Alberta, Saskatchewan or Manitoba)
- Have suffered financially because of the COVID-19 pandemic
- Can demonstrate 2019 revenue of less than $10 million, or pre-revenue businesses that received angel or venture capital funding
- Have applied for funding from other federal COVID-19 support measures, such as the Business Development Bank of Canada's Co-Lending Program, and Export Development Canada's Business Credit Availability Program
- Intend to continue operations in Western Canada
- Can describe the financial impact that COVID-19 has had on its operations, and outline how WD funding will help support the western Canadian economy to:
- retain diverse and valuable talent
- maintain sector knowledge and skills
- maintain capital flow
- maintain critical supply chains and increase capacity to withstand supply chain disruptions
- protect technologies and processes that improve resilience, productivity, and/or competitiveness
- protect vital intellectual property
This will depend on the relief program.
Businesses who have received the Canada Emergency Business Account (aka CEBA/40K loans) or the Community Futures Emergency Loan Program will not be eligible for the $40,000 RRRF.
Businesses that have received support from other Government of Canada relief funding measures, including the Business Development Bank of Canada's Co-Lending Program, Working Capital Loan, and Oil and Gas Sector Capital Loan, as well as Export Development Canada's Business Credit Availability Program, but require additional funding to mitigate liquidity pressures may still apply.
Either up to $40,000 or up to $1,000,000 depending on your situation and sector.
Applications are currently being accepted on an ongoing basis and will be assessed as they are received. The WD RRRF will close once it has successfully distributed all available funds to eligible businesses.
The application process is the same for both loan amounts. Only one application can be submitted per business.
- You must apply for the Canada Emergency Business Account (aka 40K loans).
- If you are not eligible for the Canada Emergency Business Account and you are located in an area serviced by a Community Futures Organization you must apply to the Community Futures Emergency Loan Program
- If you do not meet the criteria of either above programs
- If applying for funding up to $40,000 attach the below items to your completed Regional Relief and Recovery Fund application
- Void cheque or direct deposit form validated from your bank
- If applying for funding over $40,000 attach to your Regional Relief and Recovery Fund application:
- Financial statements for the past 2 years
- Estimated 2020 cash flow needs from April 1, 2020, to September 30, 2020
- Void cheque or direct deposit form validated from your bank
- Receive and print your confirmation message with your Reference #
- You will be notified by email with a decision on your application
At the end of your Contribution Agreement, you will be required to submit a final report that includes:
- Number of jobs maintained, thanks to RRRF
- Confirmation that the business is continuing its operations
- Any other metrics requested by WD
- Recipient’s financial statements (at the request of WD)
Check out the guide here.
Up to $40,000
- Repayment of 75%, or up to $30,000 of the contribution about paid before December 31, 2022, will result in a 25% forgivable portion (max. $10,000)
- No scheduled monthly repayments are required until after December 31, 2022
- If 75% is not paid before December 31, 2022, the balance owing will be converted to an additional 3 year term loan with a fixed monthly repayment schedule. This will begin January 2023 and will not have any forgivable portion
- 100% of contributions must be repaid by December 31, 2025
- 100% of contributions must be repaid by December 31, 2025
- No scheduled monthly repayments are required until after December 31, 2022
- 3 year repayment period beginning January 2023
- Check that you are eligible
- Check that your application is not missing any mandatory information or documentation
- Ensure that you have only submitted one RRRF application
- Contact the WD at 1-888-338-WEST (9378)
Up to $40,000
If your application is approved, you will be asked to review and accept a Contribution Agreement before a single payment is provided to you.
If your application is approved, you will be asked to review and accept a Contribution Agreement before your funds will be disbursed. This may include advance payments.
Please feel free to contact your Western Economic Diversification Canada Office at 1-888-338-WEST (9378)
Vancouver, BC - Tel: 604-666-6256 - Email: [email protected]
Calgary, AB - Tel: 1-888-338-9378 - Email: [email protected]
Edmonton, AB - Tel: 780-495-4164 - Email: [email protected]
Saskatoon, SK - Tel: 306-975-4373 Email: [email protected]
Winnipeg, MB - Tel: 204-983-4472 Email: [email protected]
In the territories, the RRRF provides support in key sectors including, but not limited to, tourism, fisheries, the mining supply chain, local food production and processing, regional innovation ecosystems and community infrastructure, as well as support to Community Futures Networks in Nunavut, Northwest Territories and relevant stakeholders in Yukon. There are three ways to receive funding:
- NBRF - CanNor’s Northern Business Relief Fund - non-repayable grant
- Targeted relief and stabilization measures for key sector
- Community Futures Network - More information to come soon
All registered northern-based business including sole-proprietors, partnerships and incorporated companies who:
- predominantly operate in one or more of the territories, and their operations have a direct impact on the northern economy
- have been in operation since October 1, 2019
- have fewer than 100 employees - priority will be given to SMEs with less than 20 employees
- were solvent, financially viable, and not declared bankrupt prior to the onset of economic disruptions associated with COVID-19
- are currently, and expect to continue, operating at a loss over the coming months (i.e. to incur ongoing expenses that are higher than incoming revenues) as a direct result of COVID-19.
- franchisees or subsidiaries of larger corporations where financial support can be provided by the franchisor, parent or holding company or trust fund, or where the total number of employees of the corporation and all its subsidiaries is greater than 100
- territorial, municipal or other governments, agencies of government and crown corporations
- not-for-profit organizations, societies, co-operatives, unincorporated associations
The NBRF amounts available will vary on the SME’s eligible fixed operating costs. This amount can vary from $2500-$100000 and will be covered at 100% in the form of a non-repayable grant for a maximum of $100000 in total costs over the 4 month period. Any amount claimed that would allow a recipient to generate profit will make the SME ineligible to NBRF.
Eligible fixed operating costs include:
- rent/mortgage; and
- utilities (Heat, electric, water & sewer, phone and internet); and
- subscriptions (i.e. financial or booking systems);and
- insurance; and
- other fixed costs as deemed reasonable at the sole discretion of CanNor
Ineligible fixed operating costs:
- salaries and wages
- costs covered by business continuity insurance
- mortgage for property(ies) other than the primary business location OR residential properties used for income generation (for example, AirBnB)
- rent or mortgage for home-based businesses
- other home-based business costs where the costs are not 100% attributable to the business (for example, while a home-based business can request reimbursement for business insurance, it cannot request reimbursement of 20% of its electricity bill on the basis that the business occupies 20% of the floor space of the primary residence)
- other costs that may be deemed ineligible and/or are not deemed by CanNor to be essential during the period of business closure or reduced operations
- any amount claimed that would allow a recipient to generate profit will makes the SME ineligible to NBRF
When Applying provide:
- Complete Application-Agreement form
- Direct Deposit Form
- Detailed General Ledger (March-June 2019) OR Monthly invoices for the eligible fixed costs of the months for which they are being claimed.
- Income Statement of General Ledger Summary for the year 2019
- Articles of incorporation
- Lease/mortgage agreement for commercial space (if applicable)
- Franchise agreement (if applicable)
At the end of the agreement
- Income Statement of General Ledger Summary for agreement period (April-July 2020)
- Copy of all invoices for fixed costs claimed for the entire agreement period
- Copy of agreement and payments received from any other federal, territorial, municipal or other COVID-19 relief program including (CEWS, EI Work sharing program, Government of Nunavut Small Business Support Program, Government of Yukon SME Relief Program)
E-mail CanNor at [email protected] to obtain a copy.
Nunavut Regional Office
E-mail: [email protected]
Northwest Territories Regional Office
E-mail: cannor.ecdevnwt-devecnwt.[email protected]
Yukon Regional Office
E-mail: [email protected]
Work refusals are becoming more prevalent with COVID-19 Health and Safety concerns. Make sure you keep the below in mind when dealing with employee work refusals.
- Create a business pandemic policy to communicate and educate employees about your new workplace expectations and measures in the workplace.
- Keep the lines of communication open with your employee. Ask for the work refusal reasons in writing/email. The situation is likely to fall into the below categories:
- Health and Safety concern (fear of getting sick)
- Sickness (from Covid-19 or not)
- Caring for or living with a dependent or at-risk demographic (child or parent)
- Communicating, but not willing to come back to work
- Not communicating (job abandonment)
- Determine if there is any way that your business can accommodate the employee’s situation. Health and safety in the workplace are the employer’s priority and the responsibility of all those in the workplace. Should there be an opportunity to accommodate a reasonable concern, then it will be the responsibility of the business to consider accommodations to the point of undue hardship. Accommodation can take many forms such as providing more PPE, allowing an employee to work from home, or allowing an employee to use a protected provincial/territorial/federal leave of absence, if available.
- Keep documented proof. Whether it’s accommodations for an employee who feels unsafe in the workplace, or weekly registered letters sent to an employee to prove a history of non-responsiveness, it is always advised that you keep communications with employees in their employee files.
It is important to remember that an employee’s non responsiveness cannot be assumed to be a resignation. Thus, an employee’s refusal to report to work, or his or her absence without justification or resignation letter, cannot automatically be interpreted as a voluntary departure/resignation.
If you are unable to communicate with your employee, you are required to follow up with them in a verifiable method such as registered mail. This letter should come from a place of concern for the employee and request that the employee provide you with an update on their situation. The letter should in no way be threatening or presumptive. Should the employee persist in being non-responsive, you should continue to document this history of non-responsiveness before considering job abandonment or frustration of contract. These situations should be dealt with on a case-by-case basis. If you are in this situation, please contact your Business Counsellor or employment lawyer.
The government advises people 70 years of age or older to stay home unless necessary. However, it is not prohibited to ask them to work. Before acting on a decision, ensure that you know what your provincial laws and HR best practices are on this matter.
Provincial Health and safety laws provide that an employee has the right to refuse to work if they have reason to believe that their health or safety is at risk. It is the responsibility of an employer to provide a safe workplace, so if there is a refusal of work related to health and safety it should be documented and addressed in the workplace. Should the refusal of work persist, then your provincial ministry of labour or department of Health and Safety will likely need to be involved to investigate the matter.
Provincial Human Rights laws provide protected grounds on age. This means that an employer unjustifiably treating employees differently because of age would leave themselves open to a human right’s claim for age discrimination.
HR best practices:
It is often recommended to refrain from categorizing your employees by age and instead base employee safety measures and policies on all employees’ ability to work. This reduces the risk of human rights claims, allows employers to set health and safety expectations across all their employees and deal with the case-by-case situations as they come up.
Should a case come up, consider whether the worker's presence at work is necessary, and whether their health allows it. Should there be reasonable cause for concern, you may need to consider additional preventive measures/policies in the workplace to accommodate their situation and ensure their wellbeing and that of others in the workplace.
Should an employee be willing to work, but you, as the employer, feel uncomfortable having them in the workplace, you will likely need to pay for their leave to stay home.
An alternative solution would be to try to find work from home solutions for this employee.
What do I do with employees who cannot return to work because they are taking care of a dependent (child or parent)? What do I do if my employees don’t feel safe sending their children to school or daycare?
Pre-COVID-19, an employee who does not return to work could be disciplined up to and including dismissal; however, our current situation is very unique and will require drastic changes in the workplace. Employers will be required to be flexible and accommodate employees who cannot return to work. Each employee will likely have their own needs that should be managed on a case-by-case basis.
Here are some tips for managing the situation:
- Talk to your employee about their situation and what their needs might look like. Is this a matter of health and safety in the workplace? Is this a matter of being available to watch the dependent?
- Determine if there are any accommodations that you as the employer can provide, such as working from home or a change in their job description to allow them to do work from home.
- Check to see what provincial, territorial and/or federal protected leaves might apply to your employee. As provinces move to re-open, following public health guidelines, your employees are expected to return to work in a safe workspace.
- Call your CFIB Business Counsellor to discuss your employee’s situation and how to find the best solution for both of you.
Note that some jurisdictions have enacted protections for employees who are unable to work due to COVID-related reasons; talk to your Business Counsellor before disciplining an employee in this situation.
Pre-COVID-19, an employee who does not return to work could be disciplined up to and including dismissal; however, our current situation is very unique and will require drastic changes in the workplace. Employers will be required to be flexible and accommodate employees who cannot return to work. Each employee will likely have their own needs which should be managed on a case-by-case basis.
Here are tips on managing the situation:
- Talk to your employee about their situation and what their needs might look like to feel safe coming into the workplace. In these situations, it is not uncommon for the employee to be afraid of coming into the workplace altogether.
- Determine if there are any accommodations that you as the employer can provide, such as telework, working from home or a change in their job description to allow them to do work from home, or leave without pay.
- Check which provincial, territorial, and/or federal protected leaves might apply for your employee. for personal or family leave that may apply to this situation. As provinces move to re-open, following public health guidelines, your employees are expected to return to work. Under normal circumstances, an employee who does not return to work could be disciplined up to and including dismissal.
Note that some jurisdictions have enacted protections for employees who are unable to work due to COVID-related reasons; talk to your Business Counsellor before disciplining an employee in this situation.
- We know that these situations are not always easy or clear. Call your CFIB Business Counsellor to discuss your employee’s situation and how to find the best solution for you and your employee.
- Check the public health guidelines in your jurisdiction on how to proceed in this situation.
- If the employee has not come into the workplace, you can require an employee to self-isolate for 14 days. The worker must take all necessary measures to protect their health and safety, and those of others in the workplace. As an employer you have a duty to take all necessary measures to protect the health and safety of your workers.
- Provide the employee with their provincial, territorial, and federal leave/pay options and ensure that they know who to call at the workplace to keep updated on their situation.
- Request the employee provide you with a fit-to-work assessment before coming back into the workplace. Please note that provincial rules will vary on being able to ask for doctor’s notes.
This will vary depending on the level of exposure to your workplace and the provincial rules provided by your ministry of labour and your public health authority. Please consider the general recommendations below:
- Request that the worker leave the premises, use the COVID-19 Symptom Self-Assessment Tool, and self-isolate for 14 days
- Evacuate the space/send employees home
- Determine the level of exposure in your workplace
- Check the public health guidelines in your jurisdiction on how to proceed in your situation.
- Clean and disinfect the exposed premises. Ensure that workers are not using the space to give the disinfectants time to take effect.
- Re-educate employees on company policies to ensure that the incident does not happen again.
Being allowed to require a medical note from your employee will depend on your business’s provincial employment standards and on the severity of the employee’s shared situation.
To reduce the strain on health care providers, some provincial governments recommend that only persons experiencing serious symptoms attend hospitals or medical clinics. Some provincial governments are requesting that businesses do not ask employees for medical notes before or after sickness. As an alternative, your provincial government may allow you to ask for a fit-to-work assessment/functional abilities form upon your employee’s return to ensure their ability to work.
If a particular situation allows you to request a medical note, it will be important to check whether your province's standards require you to cover the costs related to this request (transportation, remuneration, medical assessment, etc.).
Should you be uncertain of what is acceptable in your province feel free to contact a CFIB Business Counsellor to speak about your situation.
Provincial Health and Safety legislation allows an employee to refuse work they feel is unsafe. Health and Safety in the workplace is an employer priority and the responsibility of all those in the workplace. It is important to talk to the employee about their concerns, explain to them all the safety measures put in place at the workplace to keep employees safe, and ask the employee what would make them feel safer. Including employees in these decisions lets them know their voices are heard and that their safety really is a priority.
Should the employee still feel that they are unsafe in the workplace past the point of accommodation, you may need to request the complaint in writing and involve your provincial Ministry of Labour to investigate your workplace to make a health and safety ruling. If the complaint is deemed reasonable, then you will be required to accommodate the employee. If the complaint is deemed unreasonable, then you can require the employee to return to work.
Having a COVID-19 Health and Safety policy in place will help to clearly show the measures that the business has taken to keep workers, customers and suppliers safe. It should also provide information on how employees can report concerns. In some jurisdictions, a COVID-19 Health and Safety policy, or a COVID-19 operational plan is a requirement to re-open your business. Check with your Business Counsellor to find out what is needed in your province/territory.
Can I tell my employees that the time they were off due to COVID-19 business closures is their vacation time for this year?
While most jurisdictions do allow for the employer to decide when an employee will take vacation, there are generally conditions attached:
- The employer is required to give notice of the date the vacation will begin, and
- The employer may not mandate vacation time unless an agreement on vacation time cannot be reached.
This means that telling an employee after the fact will not be permissible.
If your jurisdiction does allow for the time off to be vacation time, then you will still need to pay out the vacation pay. Consult our chart to find the rules according to your province or territory.
If you have questions about vacation time and returning employees, please contact your CFIB Business Counsellor.
Employees can work while on claim using the workshare program.
This is a three-way agreement with the employee, employer and Service Canada that takes about 30 days to negotiate. If the employer has already put this in place, Service Canada will waive the 30 days of negotiation.
The first CERB period for an employee is the first 4-week period where they have not earned more than $1000 in employment and/or self-employment income for 14 consecutive days. Should you be eligible for EI this will not necessarily be the first CERB period (March 15 - April 11, 2020). Should you not be eligible for EI these 14 or more consecutive days will be within the four-week benefit period of your claim.
Subsequent CERB periods are the 4-week in length. If you are eligible for EI, this will not necessarily follow the CERB period schedule. If you are not eligible for EI, this will follow the CERB period schedule. An employee can earn $1000 in employee income and/or self-employment income in each period and still claim CERB.
- Provide a copy of the employee’s pay stub or a copy of the to-be-filed” ROE to the employee
- File the ROE when possible on ROE web
We know this is very frustrating. CFIB is raising this issue with the government.
In the meantime, the fastest way for an employer to submit their ROEs is still online through ROE web. Although paper ROEs seem like a quick solution for businesses it will not help Service Canada work more efficiently.
For employees applying for EI, know that employees can always provide Service Canada with pay stubs/a copy of the ROE to create an interim ROE while waiting for their employer’s ROE.
When laying off employees you will be required to file a Record Of Employment (ROE).
An ROE has to be filed when there is an interruption of earnings of seven days (known as the seven-day rule). The interruption of earnings occurs when there are seven consecutive days with no work and no insurable earnings, or when an employee’s salary falls below 60% of regular weekly earnings due to illness, injury, quarantine, pregnancy, etc.
If you are filing the ROE electronically, it must be issued within 5 calendar days of the end of the pay period in which the employee’s interruption of earnings occurs. If you are using a paper ROE, it must be issued within 5 calendar days of the employee’s interruption of earnings, or the date you became aware of the interruption of earnings.
There are two ways to complete the ROE:
- Through ROE web either by using a:
- Select Sign-In Partner; or
Note: Service Canada will require a second method of verification which they will send by mail before you gain access to ROE web.
- Calling Service Canada 1-800-622-6232 for a Paper ROE (unavailable at the moment)
For more information please read the steps to complete the ROE.
Shortage of Work (Layoff)
When you are laying off employees due to a shortage of work or a temporary business closure.
Illness or Injury
When an employee is absent due to illness, quarantine, or ordered self-isolation.
When an employee quits their job, or refuses to come into work.
When you have received approval to participate in the work-sharing program and the employee needs to apply for benefits.
Leave of absence
Can be used if an employee is unable to work; for example, schools and day cares are closed and so they must stay home with a child.
DO NOT put any comments in the comments box on the ROE; this will slow down processing as the ROE will need to be reviewed manually.
Service Canada offers a block-by-block guide to completing the ROE.
For now, the eligibility criteria remain unchanged. We will update the information if the government announces special measures.
Updated 2020-05-04: Service Canada is now allowing businesses to top up” their employees’ wages if they are receiving CERB up to a threshold of $1000/CERB period.
The Supplemental Unemployment Benefit Program is designed for businesses who do want to top-up”or increase their employees’ weekly earning when they are unemployed due to a temporary stoppage of work, training, illness, injury or quarantine. These SUB plans need to be registered with Service Canada and are not considered as earnings and therefore are not deducted from EI benefits. These are supplementations of the employer’s side
For more details see the SUB plan guide.
Workers with open work permits, international students, and workers on visas will be allowed entry into Canada, despite restricted border measures, provided that they self-isolate for 14 days.
For many businesses, the COVID pandemic may be the first time they’ve had to consider having employees working from home. Fortunately, it’s fairly easy to ensure productivity even while the team is geographically separated.
- Staying connected: communication will be more important than ever. As well as e-mail, consider a cloud-based platform such as Microsoft Teams, Slack, Skype or Facebook Workplace to allow for instant messaging. You can create group chats so members of internal teams can have virtual meetings and even conference calls without needing the telephone.
- Be clear in your expectations: Is it more important that employees work a certain number of hours or that they complete a certain task? How often should employees check in? Be mindful that employees may have unavoidable distractions such as child-care due to school closures.
- Make sure employees have what they need: Not everyone will be set up for working from home, so talk to employees and make sure they have what they need to do their job. Don’t assume that employees have landlines, printers, fast internet connection, etc.
- Be patient: This is a time of huge turmoil for everyone, and some employees will adapt better than others. Acknowledge the stress your employees are feeling and work with them to find solutions.
If employees are concerned about working from home, you can share with them our top tips for a productive home office.
The Government of Canada will provide support of $1,500 per temporary foreign worker to help pay the cost of the mandatory 14-day isolation period required of all workers arriving from abroad. Applications will be made through the Ministry of Agriculture website – more details to come.
- Honour the worker’s period of employment to start upon their arrival to Canada
- Paying the wages and benefits during the TFW’s self-isolation period
- Specifically, for the workers in the Seasonal Agricultural Worker Program
- Other workers must be paid for a minimum of 30 hours per week and at the rate specified on the LMIA
- The employer can withhold standard contract deductions (e.g. Employment Insurance, housing, transportation, etc.) as per their TFW Program stream requirements.
- No deductions of any additional amounts due to the self-isolation period
- Keep a proof of employee wages paid
- Cannot authorize the worker to work during the self- isolation period, even if requested by the worker. The only exception is if the service is deemed an essential service by the Chief Public Health Officer. No other duties other than those approved by the Chief Public Health Officer may be asked of the worker.
- Regularly monitor the health of workers who are self-isolating or workers who become sick after the self-isolation period.
- Communicate with your employee on a daily basis (call, text, email, or in-person two metres away if necessary) during self-isolation and ask if they are experiencing any symptoms
- Maintain a record of responses received
- If a worker becomes symptomatic at any time the employer must:
- Immediately arrange for the worker to be fully isolated from others
- Contact the local public health officials
- Contact the appropriate consulate (suggested)
- Ensure workers have the tools and supplies necessary to practice good hygiene:
- Access to hand-washing facilities
- Provide soap
- Provide alcohol-based hand-sanitizer if hand-washing facilities are not available and hands are not soiled
- Provide information on COVID-19 to the worker on or before the first day of self-isolation
- Try to provide the information in a language understood by the employee. Contact the Public Health Agency of Canada at 1-833-784-4397 or by e-mail at [email protected] for materials in different languages.
- Provide information in writing or orally (i.e. by telephone) as appropriate
- The employer must report any violation of the Quarantine Act to local law enforcement; including workers who do not observe the mandatory self-isolation period.
- Employers must follow all federal and provincial/territorial employment and health and safety laws, as well as the public health requirements of both the federal and provincial/territorial governments
Additional requirements for employers who provide accommodations:
- Self-isolating workers must be housed separate to those who are not self-isolating
- Self-isolating workers can be housed together; however, the workers must be able to maintain at least a 2 metre distance between them at all times. If this requirement cannot be met, then alternate housing arrangements (e.g. hotel) may be required.
- Note: if new workers are housed for self-isolation with workers already in self-isolation, the calendar resets to the day the most recent worker arrived.
- Surfaces in the accommodations must be cleaned and disinfected regularly. In bathrooms, kitchens and common areas cleaning/disinfecting is recommended to be done at least daily and a log should be kept of all cleaning.
- Workers can do this as it is considered essential work, alternatively a professional cleaner can be hired
- The employer must provide all supplies – paper towel, cleaning/disinfecting products, dish soap, laundry soap, etc.
- Information on preventing the spread of COVID-19 must be posted in the accommodations, including information on best practices in maintaining facilities:
- Information should be posted in bathrooms, kitchens, common areas
- Information should be in the language of the worker(s)
- The accommodations must prevent the self-isolating worker from coming in contact with older adults (65+) and people with medical conditions who are at risk of developing serious illness. A caregiver for an elderly person must spend the self-isolation period in different accommodations to the elderly person.
Occupational Health and Safety requires employers to provide a safe workplace for their employees.
Preventive measures could include:
- Ensuring that handwashing facilities are readily available and encouraging employees to practice good hygiene.
- Ensuring employees are aware of the symptoms and risk of the virus.
- Having a Health and Safety meeting with your committee or representative (if applicable) to review business policies and protocols.
- Posting safety measures and encouraging employees to follow them to help prevent person to person transmission.
- Permitting employees to work remotely where possible. Communicate this to employees, so they will feel comfortable working from home if they are feeling under the weather.
- Having safety products available (hand sanitizer, disinfectant wipes, gloves, etc.).
- Paying additional attention to cleaning – disinfecting door handles, computer keyboards, telephones, etc.
Note: these measures also help prevent the spread of other infections such as colds, the flu, and stomach bugs.
Be wary of singling out an employee to stay home as a preventive measure, if other employees are continuing to come into the workplace. The reason to remove the employee from the workplace needs to be supported by facts, and be in line with public health guidelines, to avoid the possibility the move could be perceived as being discriminatory.
Having a small business sick policy or attendance policy is good business sense at all times, not just when there is a pandemic. Letting employees know exactly what they are entitled to, based on Employment Standards requirements and your own internal policies, will set expectations and reduce confusion and frustration.
Under Occupational Health and Safety legislation, employees have a right to refuse work if they have reasonable grounds to believe it is dangerous to their health or safety. Remind your employees of the preventive measures that have been put in place, and the safety products available to them. This may help mitigate instances of employees refusing to work due to the coronavirus outbreak.
Each employee has a duty to report any dangerous situation to their supervisor. The employer then has a duty to take remedial action by having the workplace health and safety committee and/or representative investigate. In some cases, a government health and safety officer may need to investigate as well.
The employer may choose to reassign work. In this case, the employee must receive the same wages and benefits as they would have received under their previous assignment.
Please review the OH&S legislation in your jurisdiction for guidance on further reporting responsibilities, or talk to a CFIB Business Counsellor.
The federal government is requiring all travelers arriving from an international destination to self-isolate for 14 days. If the employee develops even a low-grade fever or mild cough they should avoid close contact with other people, and call their healthcare provider or public health department (contact information below).
If the employee is ill and still exhibiting symptoms, you can ask the employee to provide a note from a healthcare practitioner that gives them clearance to return to work, before the employee may return to their regular duties.
The federal government is recommending that all international travel be restricted. International flights will only be permitted to land at certain airports, and travellers arriving from international destinations will be required to self-isolate for 14 days. It is also possible that travellers will find themselves quarantined in the country they are visiting.
Self-insolation/quarantine requirements are decided by the destination’s provincial government. The employee may well be required to self-isolate for 14 days upon arrival in the destination province, and again when they return home.
Should an employee be travelling to provinces without self isolation/quarantine requirements, an employer should still consider the risks to the employee’s Health & Safety and determine if having a self isolation term in the business’ travel policy is necessary.
Some provinces are now mandating a 14-day self-isolation for any person returning from outside the province. If this is the case in your province, then the employee will have no choice but to self-isolate.
If your province does not have the requirement to self-isolate following inter-provincial travel, the business could set the expectation of self isolating in the business’ travel policy. An employer is responsible for the health and safety of it’s employees and can ask the employees to stay home should there be reasonable cause . Requiring an employee to self-isolate when it’s not mandated by the government may mean still paying the employee. It would be best to talk to a lawyer in those situations to ensure the business is on-sides with any applicable employment standards rules and regulations.