March 19, 2020

Your CFA Daily Update on COVID-19

Federal programs to help with the cash crunch

Wage subsidy – Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer for a period of three months. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities. This will help businesses facing revenue losses and help prevent lay-offs.

Business Credit Availability Program (BCAP) – The program will further support financing in the private sector through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Under this program, BDC and EDC will enhance their cooperation with private sector lenders to coordinate financing and credit insurance solutions for Canadian businesses. This will allow BDC and EDC to provide more than $10 billion of additional support to businesses. Apply through

Tax Deadlines Deferred – The CRA is allowing businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020.  This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. 

Closures and state of emergencies in SK, NF, PEI, NB

Under the following states of emergency the following are activities are banned

• Public gatherings now capped at 50 people, down from 250 people.
• Gyms and casinos ordered to close.
• Restaurants can remain open but may eventually be limited to takeout only.
• Provincial government employees told to work from home. 
• Grocery stores, pharmacies and gas stations are exempt from that rule – but must have processes to maintain a one-to-two-metre separation.

Saskatchewan – Late on March 18, Saskatchewan Premier Scott Moe declared a state of emergency in Saskatchewan. For more information

PEI - P.E.I. has asked non-essential businesses to close as part of its plan to fight COVID-19. Things like grocery stores, pharmacies, gas stations, hardware stores and car repair locations can stay open, the premier said. Read more about what's happening on P.E.I. here.

Newfoundland and Labrador – Has declared a public health emergency, and ordered several types of businesses — including gyms, movie theatres, arenas and bars — to close. "This is an unprecedented time," Health Minister John Haggie said Wednesday. Read more about what's happening in N.L. here. 

New Brunswick – Premier Blaine Higgs says the province is now in a state of emergency, effective immediately. The restrictions are similar to what are listed above in the other provinces. NB also has suspended the authority of landlords to evict tenants for non-payment of rent through May 31. For more information

BUSINESS RESOURCES

– Federal government fiscal stimulus package in response to Covid-19 courtesy from BDO Canada LLP

– Tax Alert: Federal and Quebec Governments Extend Income Tax Filing and Payment Deadlines courtesy from BDO Canada LLP

– U.S. provides 90-day extension to pay individuals and corporate taxes due to Covid-19 courtesy from BDO Canada LLP

– COVID-19 Impact: Expansion of EI Benefits and Other Financial Support Programs courtesy from Cassels Brock & Blackwell LLP

BC – Guides for Employers and Employees

For Employees: You can take time away from work to deal with unexpected illness or life situations. Find what you need to know about taking unexpected time off work:

Get information for Employees

For Employers: Find out what you must do if employees fall ill, are absent from work or your business is unexpectedly disrupted

Get information for Employers

CFA UPCOMING WEBINAR

Impact of COVID-19 on Employment Law

March 24, 2020 | 2 p.m. ET

Your Speakers:

DESCRIPTION:
This webinar will provide you with an overview of the impact of the rapidly-changing COVID-19 situation on employment law. Topics covered in this webinar include layoffs, sick leave, quarantine leave and terminations. It will also provide you with the opportunity to ask questions to legal experts.

COVID-19's impact on the world is creating waves across all sectors and industries.

Every member of the CFA community is dealing with an issue that is affecting the world, our industries, our communities, our businesses, and our people.

We would like to hear from you if you have any topics, issues or questions to navigate turbulent times in order to support you further: