Additional COVID-19 Resources
COVID-19 – Helping Your Employees
New Tax Filing and Tax Payment Deadline
The Canada Emergency Wage Subsidy
Canada Emergency Business Account
Aid for Students and the Canadian Emergency Student Benefit
GGFL Service Changes
COVID-19, Taxes and Office Operations
Client Safety and Care During COVID-19
Updated May 11, 2020
Governments at all levels have introduced measures that help businesses manage their cashflow in these extraordinary times. These include payment deferrals without interest or penalties and enhanced or new programs providing access to loans. We recommend taking full advantage of these measures to help you manage your cashflow. Here is a list of what’s available. We will update information as programs are added or modified.
Temporary Wage Subsidy
On Friday March 27, the federal government announced a significant increase to the Temporary Wage Subsidy (TWS).
The new measures, which are designed to keep employees on the payroll during the COVID-19 crisis, include a 75 per cent wage subsidy – an increase from the 10 per cent announced last week – and guaranteed interest-free loans.
The wage subsidies will be backdated to March 15, 2020. See COVID-19 and the Temporary Wage Subsidy for more details on the subsidy.
Taxes Payable
GST and HST payments, as well as duties and taxes owed on imports, will be deferred until June.
The government has granted extensions on most business tax filing dates and payment due dates. See our list here – New Tax Filing and Tax Payment Deadline.
Access to Credit
Two of the key conduits for government assistance will be the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
On March 27, 2020, the government also announced it would make an additional $12.5 billion available through the EDC and BDC bringing the total amount announced since last week to $22.5 billion.
BDC’s new relief measures for qualified businesses include:
- Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses;
- Postponement of payments for up to 6 months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less;
- Reduced rates on new eligible loans;
- Additional details regarding Business Credit Availability Program (BCAP) measures, including industry specific support, to be announced soon.
More information can be found here: https://www.bdc.ca/en/pages/special-support.aspx?special-initiative=covid19 and here https://www.edc.ca
On May 11th, the government announced a new loan program for large and mid-sized enterprises. The Large Employer Emergency Financing Facility (LEEFF) will provide $60M in financing for companies with annual revenue of $300M and financing of $12.5M-$60M for companies with revenue of $100M.
Companies applying need to have “significant operations and workforce in Canada” and there will be obligations to report on climate and sustainability initiatives. Limits on executive pay and share buybacks will also be in place.
Employer Health Tax Reduction
The Ontario government has provided relief for employers who are currently eligible for the Employer Health Tax Exemption of $490,000. The exemption is now on payroll of up to $1 million.
There is also a payment holiday of five months for Ontario businesses unable to file their provincial taxes on time due the current special circumstances. Read more here Provincial Tax ‘Holiday’
Workplace Safety Insurance Board (WSIB) Payment Deferrals
Those businesses participating in the Workplace Safety Insurance Board program will now be allowed to take a payment holiday until August 31, 2020 without incurring any interest or penalties.
No action is required. Businesses may continue to report as usual without remitting a payment. Read more here WSIB.
City Of Ottawa Property Tax Hardship Deferral
All property owners have been given an interest free grace period up to April 15, 2020. Those experiencing financial hardship due to COVID-19 pandemic may apply to defer payments to October 2020 without penalty. There are conditions:
- The property owner must have experienced financial hardship directly related to the COVID-19 pandemic.
- Property taxes must have been paid up to date before the March 2020 interim installment.
- The property must be either;
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- A taxable property assessed in the following tax classes; occupied commercial, shopping, office, industrial, multi-residential or new multi-residential class and have a total taxable 2020 property assessment value equal to or under $7.5 million.
- A taxable residential property with a residential structure.
Businesses leasing their space, should contact their landlord to request the extension of any benefits to their own operating charges.
City Of Ottawa Water Bills
Residents will also receive some relief on their water bill.
The city is providing an interest-free 30-day payment grace period on all unpaid water bills issued before Wednesday, April 1. For water bills issued between April 1 and Oct. 30, the city will grant a 30-day extension on the due date.
