Category Archives: COVID-19

Revisions to CERB – Canadian Emergency Response Benefit

April 14, 2020

The federal government has been looking at ways to revise and improve the Canadian Emergency Response Benefit (CERB). This revision is intended to better address the needs of part time and other workers, especially those Canadians working in essential jobs who make less than they would if they received the benefit as it was originally established.

Under the original plan, the CERB provided a taxable benefit of $2,000 every four weeks for up to four months for eligible workers who have lost their income due to COVID-19.

Today the Prime Minister announced that the government will be changing the eligibility rules to:

  • Allow people to earn up to $1,000 per month while collecting the CERB
  • Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their usual seasonal work as a result of the COVID-19 outbreak
  • Extend the CERB to workers who recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19
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The Prime Minister also acknowledged that the COVID-19 pandemic has placed particular demands on low-income workers in certain sectors, including those on the front-line in hospitals and nursing homes, those ensuring the integrity of the food supply, or providing essential retail services to Canadians.

To address this situation, the federal government will work with provinces and territories through a new transfer to cost-share a temporary top-up to the salaries of workers deemed essential in the fight against COVID-19, who make less than $2,500 a month.

Details as to the application and delivery of this measure will be released shortly following further work with provinces and territories.

Ontario Extends Declaration of Emergency

April 14, 2020

Ontario Extends Declaration of Emergency to Continue the Fight Against COVID-19

TORONTO ― On the advice of the Chief Medical Officer of Health and with the approval of the Ontario legislature, the Ontario government is extending the Declaration of Emergency under the Emergency Management and Civil Protection Act for a further 28 days. This will allow the government to continue to use every tool at its disposal to protect the health and safety of the people of Ontario during the COVID-19 pandemic.

Passed during a special sitting of the Ontario legislature and with the full cooperation of all parties, the Declaration of Emergency has been extended until May 12. The extension of the provincial declaration of emergency allows Ontario to continue to enforce current emergency orders, such as the closure of all non-essential workplaces, outdoor amenities such as parks and recreational areas, public places and bars and restaurants, as well as restrictions on social gatherings of more than five people, and prohibitions against price-gouging. A full list of emergency orders can be found on the e-Laws website under the Emergency Management and Civil Protection Act.

“During these unprecedented times, we cannot let our guard down. The actions being taken by everyone to stay home and practice physical distancing are making a difference, but we are not out of the woods yet,” said Premier Ford. “With the support of every Ontario MPP, we continue to take any and all actions necessary to support our frontline health care workers and respond rapidly and decisively to slow the spread of this deadly virus.”

The legislature also passed the Coronavirus (COVID-19) Support and Protection Act to amend the Education Act, Planning Act, Development Charges Act, Police Services Act and the Ministry of Training, Colleges and Universities Act. This new legislation demonstrates that the government is actively listening to the concerns of education and municipal stakeholders during this COVID-19 emergency.

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“This legislation is about protecting the health and economic interests of Ontarians,” said Stephen Lecce, Minister of Education. “We will do whatever it takes to get through this challenge ― most especially for the next generation ― so that students continue learning and graduating.”

The amendments to the Education Act will allow school boards to continue charging fees on new construction in order to retain a vital source of revenue for new school projects. The bill also includes an amendment to provide a fair and consistent provincewide approach to addressing school suspensions and expulsions as part of the government’s commitment to the safety of students and staff upon the reopening of schools.

The changes to the Ministry of Training, Colleges and Universities Act will temporarily suspend student loan payments for OSAP borrowers and initiate a six-month interest-free moratorium on OSAP loans.

“We are taking action to ease the financial burden for students and current borrowers during the COVID-19 outbreak,” said Ross Romano, Minister of Colleges and Universities. “By temporarily suspending loan repayments and interest accrual, our government is providing immediate support for OSAP borrowers during these challenging times.”  

The government is making it possible to suspend certain municipal planning decision timelines during the state of emergency, and change the Development Charges Act to ensure municipalities can continue to count on a vital source of revenue that helps pay for local growth-related infrastructure, such as roads, water and sewers as well as fire and police services. The amendments to the Police Services Act also allow the Solicitor General to give municipalities an extension beyond January 1, 2021 to prepare and adopt a community safety and well-being plan.

“Nothing is more important than protecting the health and well-being of all individuals and families,” said Steve Clark, Minister of Municipal Affairs and Housing. “We have listened to our municipal partners and made these changes to help them better manage staff time and resources so they can focus on the COVID-19 outbreak.”

“In these unprecedented times, our government is doing everything in its power to support our municipal, policing and community partners,” said Sylvia Jones, Solicitor General. “While Community Safety and Well-Being Plans are an important tool for municipalities to keep our communities safe, we need them to focus on allocating resources where they are needed most right now, and that is to stop the spread of COVID-19.”

Non- COVID related Sick Leave

April 6, 2020

I have received a number of questions from clients regarding medical notes for non COVID-19 related sick leave. Please see below.

The Ontario government’s Guide to the Employment Standards Act indicates that regular sick leave continues to fall under previous rules. I have quoted the relevant rules below, however my advice at his time would is based on easing the burden on the healthcare system. While the employer still has the right to ask for a note, best practice would be to trust the employee and not require a note.

The Guide to the ESA states that:

  • Employees are entitled to up to three full days of job protected unpaid sick leave every calendar year, whether they are employed on a full or part-time basis.
  • There is no pro-rating of the three day entitlement. An employee who begins work partway through a calendar year is still entitled to three days of leave for the rest of that year.
  • Employees cannot carry over unused sick leave days to the next calendar year. The three days of leave do not have to be taken consecutively. Employees can take the leave in part days, full days or in periods of more than one day. If an employee takes only part of a day as sick leave, the employer can count it as a full day of leave
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An employer may require an employee to provide a medical note from a health practitioner such as a doctor, nurse practitioner or psychologist when the employee is taking the leave because of personal illness, injury or medical emergency if it is “reasonable in the circumstances”.

However, the employer can ask only for the following information:

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CEWS Update: April 6

April 6, 2020

Last week the Prime Minister and Minister of Finance provided information on the proposed Canada Emergency Wage Subsidy (CEWS) to assist eligible employers affected by the impact of  COVID-19.

I have received many questions from employers regarding the CEWS and I have summarized answers to many of those question in this email. The information is broadly divided into 5 key sections:

  • Eligibility and Timing
  • Mechanics
  • Interaction with Other COVID-19 Benefits
  • Taxation
  • Compliance and Obligations

As of this writing, (April 6) draft legislation has not been released nor has a specific timeline been set for releasing draft legislation. All indications are that the final legislation will be very close to the announced plans, although some details may change.


CEWS Eligibility and Timing

What employers are eligible for CEWS? 
The CEWS is available to employers that have seen a decrease in gross revenue of 30% or more due to the impact of COVID-19.

What constitutes a decrease in gross revenue by 30% or more? 
The specific requirements have not yet been defined, however some guidance has been provided:

  • An employer is an eligible employer where it can demonstrate that its monthly gross revenues for the particular month have decreased by 30% or more, as compared to its gross revenues for the same month in 2019.
  • The subsidy must be applied for monthly and is available for March, April and May. (See table below for Claiming Periods)
  • Gross revenue means the employer’s gross revenue from its business carried on in Canada earned from arm’s-length sources.
  • Revenue is calculated using the employer’s normal accounting method, and excludes revenues from extraordinary items and amounts on account of capital.
  • Where an employer did not have any activities in the relevant month in 2019 it can use some other reasonable basis for comparison, giving some flexibility. Some examples given of a reference period that could be reasonable in certain circumstances are the previous month or some other month the employer reasonably considers to be comparable.
  • NOTE: The details of a ‘relevant month’ or reference period’ will presumably be outlined in the draft and final legislation.

My advice to you is to compile relevant information as completely as possible in order to be prepared for the final legislation. Should you need assistance in this regard I am happy to recommend experts from my legal and accounting network. 

What size and types of employers and corporations are eligible?

Size/number of employees: 

  • no restrictions

Type of employers:

  • individuals
  • taxable corporations
  • private or public partnerships consisting of eligible employers
  • non-profit organizations and registered charities

For charities and non-profits, the government has stated it will work with the sector to ensure that gross revenue is defined in a way appropriate to their specific circumstances.

Country of ownership or control of employer:

  • no restrictions
    • Canadian owned/controlled or foreign owned/controlled

NOT ELIGIBLE: Public bodies are not eligible for this subsidy. Public bodies include municipalities and local governments, Crown corporations, public universities, colleges, schools, and hospitals.

What are the eligibility periods?
The Canada Emergency Wage Subsidy program will be in place for 12 weeks, from March 15 to June 6, 2020. In other words, wage subsidies will be retroactive to March 15, 2020. 

The table below comes from the Government of Canada website and outlines each claiming period and the reference period for the gross revenue test. 

Claiming PeriodReference period for eligibility
Period 1March 15 – April 11March 2020 over March 2019
Period 2April 12 – May 9April 2020 over April 2019
Period 3May 10 – June 6 May 2020 over May 2019
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Amount of wage subsidies available under CEWS

For a given employee receiving eligible remuneration paid between March 15 and June 6, 2020, eligible employers can receive a wage subsidy on the first $58,700 of an employee’s salary equal to the greater of: 

  • 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week; and 
  • the lesser of the amount of remuneration paid, up to a maximum benefit of $847 per week, and 75% of the employee’s pre-crisis weekly remuneration. 

NOTE: If you have previously reduced an employee’s remuneration from its pre-crisis level, it may be possible to obtain a subsidy calculated on the higher pre-crisis remuneration.  Please contact me for advice.

How will an employee’s wages be calculated for the purpose of the 75% wage subsidy? 

Eligible remuneration includes salary, wages, and other remuneration. These are amounts for which employers would generally be required to withhold or deduct amounts at source to remit to the Receiver General. 

Severance pay or items such as stock option benefits or the personal use of a corporate vehicle are not deemed eligible remuneration. It is unclear at this point to what extent, if any, other non-monetary taxable benefits would be included. I will keep you informed of these details.

  • NOTE: A special rule will apply to employees that do not deal at arm’s length with the employer. 
    • The subsidy will only be available if the employee was already an employee of the eligible employer on March 15, 2020. 
    • The subsidy amount for such employees will be limited to the eligible remuneration paid in any pay period between March 15 and June 6, 2020, up to a maximum benefit of $847 per week or 75% of the employee’s pre-crisis weekly remuneration.

Is a subsidy available for an employee’s salary that exceeds the $58,700 threshold?
At this writing it appears that a subsidy is available if an employee’s salary exceeds the $58,700 threshold. There would appear to be no cap on the aggregate subsidy that an eligible employer may claim. 

Can you reduce your employee’s pay and continue to benefit from the 75% wage subsidy?
Under the guidance provided by the Minister of Finance, an employer may reduce an employee’s pay and continue to benefit from the 75% wage subsidy. 

NOTE: Please contact me for advice if you are considering reducing an employee’s pay. It is important to consider that a salary reduction could give rise to other labour and employment considerations. 


Mechanics

Applying for CEWS  
Eligible employers will be able to apply for the Canada Emergency Wage Subsidy through the Canada Revenue Agency’s “My Business Account” portal, as well as through a web-based application to be made available within the next four to six weeks.

Employers must keep records demonstrating their reduction in arm’s-length revenues and the remuneration paid to employees. More details about the application process are expected shortly. 

Who pays the employees – the eligible employer or the government?
Eligible employers pay employees. After paying employees, eligible employers will be responsible for submitting a claim with the Canada Revenue Agency using the portal described immediately above.

Eligible employers will be required to prove they paid an employee and the appropriate wage subsidy will be paid by the Receiver General to the eligible employer. Further details are expected as to when employers can expect to receive wage subsidy payments after paying their employees.


Interaction with other government COVID-19 Benefits

Can employers receive wage subsidies for employees who were laid off and are already being supported by employment insurance? 
In order to seek wage subsidy benefits for an employee who has been laid off due to COVID-19 the employer must re-employ the employee. In this regard, the government urges eligible employers to make every possible effort to rehire all laid-off employees.  

In the absence of re-employment, employers are not eligible to receive subsidies for employees who were laid off. Canada’s Emergency Wage Subsidy is intended to support employers for wages paid to employees they currently employ. 

Employees who have been laid off:

  • are eligible for Employment Insurance 
  • may, with the agreement of their employer, use their vacation time during a period of a temporary layoff to continue to receive pay. 

Interaction with the 10% wage subsidy announced on March 18, 2020 
On March 18, the Prime Minister announced a temporary 10% wage subsidy. For employers eligible for both the Canada Emergency Wage Subsidy and the 10% wage subsidy for a given period, any benefit from the 10% wage subsidy for remuneration paid in a specific period would generally reduce the subsidy available under the Canada Emergency Wage Subsidy for that same period.

Details about the 10% wage subsidy can be found here: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html


Interaction with the Canada Emergency Response Benefit announced on March 25, 2020

An eligible employer would not be eligible to claim the Canada Emergency Wage Subsidy for remuneration paid to an employee in a week that falls within a four-week period for which the employee is eligible for the Canadian Emergency Response Benefit (CERB). Employers not eligible for the Canada Emergency Wage Subsidy would still be able to furlough employees who will receive up to $2,000 a month.

Details about the CERB can be found here: https://www.canada.ca/en/services/benefits/ei/cerb-application.html


Taxation

Does the wage subsidy have an impact on payroll taxes?
No. Payroll taxes will continue to be calculated as provided under applicable legislation. 

Total employer payroll will continue to be calculated in the same manner, even if a portion of the remuneration paid was effectively reimbursed to the employer through the subsidy.

Is the wage subsidy taxable?
Yes. The wage subsidy would normally be treated as government assistance and included in the income of the eligible employer, although this income inclusion would be offset by an equivalent deduction for the salary paid to employees, generally resulting in a “wash” or neutral effect. 

It is worth noting, however, that this income inclusion can affect the entitlement to or amount of other tax incentives available to the eligible employer, including, for example, in determining the amount of qualified expenditures giving rise to scientific research and experimental development tax credits.


Compliance and Obligations

The government has indicated repeatedly that Canada’s wage subsidy program must be accessed in good faith and there would be serious consequences for those who abuse the program, or who act dishonestly or fraudulently. Every dollar from the wage subsidies must go to employees.

Are employers obligated to “top up” an employee’s salary to 100% after receiving wage subsidy benefits from the government? 
Eligible employers must make their best efforts to top up employees’ salaries to 100% of pre-crisis levels.

It is unclear how the presence or absence of best efforts will be determined and whether there will be any sanction. As the legislation is debated and potentially amended it may become clear if and how an eligible employer would be required to demonstrate or prove to the government that they are/were financially unable to top up employees’ salaries.

Ensuring compliance with Canada’s Emergency Wage Subsidy program
To maintain the integrity of the program and ensure it helps Canadians keep their jobs, eligible employers will be required to repay amounts paid under the Canada Emergency Wage Subsidy if they do not meet the eligibility requirements and pay their employees accordingly. 

Penalties may apply in cases of fraudulent claims. Anti‑abuse rules will also be proposed to ensure the subsidy is not inappropriately obtained and employees are paid the amounts they are owed. 

The government is considering proposing new offences that will apply to individuals, employers or business administrators who provide false or misleading information to obtain access to the subsidy or who misuse any funds obtained under the program. The penalties may include fines or even imprisonment. These details have yet to be officially announced.

Ontario extends business closures

April 3, 2020

The Government of Ontario has extended business closures and revised the list of essential businesses through an updated Emergency Order.

Below please find the news release that includes further details and links, including a new list of Essential Businesses.

The release also notes that business-owners with questions concerning their essential business status are encouraged to call the Stop the Spread hotline at 1-888-444-3659. The hotline is available from 8:30 a.m.― 9:00 p.m. Monday to Friday and 8:30 a.m.— 5:00 p.m. Saturday and Sunday.

April 3, 2020

News Release

Ontario Extends Business Closures to Stop the Spread of COVID-19 

Additional Measures Necessary to Protect the Health and Safety of the People of Ontario

TORONTO — Following the advice of the Chief Medical Officer of Health, the Ontario government is reducing the list of businesses classified as essential and ordering more workplaces to close. This measure is necessary to prevent the spread of COVID-19 and protect the health of the people of Ontario, while ensuring that necessary goods and services remain available.

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The government is ordering all businesses not covered by the updated Emergency Order to close effective as of Saturday, April 4, 2020 at 11:59 p.m. This closure will be in effect for 14 days, with the possibility of an extension as the situation evolves. Teleworking, online commerce and other innovative ways of working remotely are permitted at all times and are strongly encouraged for all businesses. All supply chains necessary for the production of vital food and healthcare supplies are being protected and remain intact.

The updated essential businesses list can be found here.

“We are facing a critical moment in the fight against COVID-19 and we must do everything in our power to keep everyone safe and healthy and prevent our health care system from being overwhelmed,” said Premier Ford. “Everyone must do their part to stop the spread and flatten the curve. If you are not an essential business, you need to close your doors, work from home if possible and play a role to help contain this outbreak. This is a matter of life and death.”

As a temporary measure the Ontario government has revised the list of essential businesses. The updated list will direct additional businesses to close and restricts specified businesses to providing services by alternate methods such as curb side pick up and delivery, except in exceptional circumstances. This includes stores that sell hardware products, vehicle parts and supplies, pet and animal supplies, office supplies and computer products and repairs and safety supplies.

“We have now reached a critical time in our fight against COVID-19.” said Christine Elliott, Deputy Premier and Minister of Health “Every step taken by the province and every effort made by each of us to avoid close contact with others are the key to our success as a province to stop the spread of this virus.”

Only critical construction projects will continue, including industrial projects such as refineries and petrochemical plants and infrastructure projects such as new hospitals, roads and bridges. New starts in residential projects will stop, while residential construction that is near completion will continue.

Business-owners with questions concerning their essential business status are encouraged to call the Stop the Spread hotline at 1-888-444-3659. The hotline is available from 8:30 a.m.― 9:00 p.m. Monday to Friday and 8:30 a.m.— 5:00 p.m. Saturday and Sunday.

“We recognize the toll this outbreak is taking on business owners and workers,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Ontario businesses are top of mind during this unprecedented time. We know that the only way to ensure the health of our businesses and our economy is to ensure the health of all Ontarians.”

The government is implementing additional measures to protect frontline workers in essential businesses by adding more than 60 special consultants and officers and doubling the number of phone agents at its Health and Safety Call Centre to 50 to make it easier for workers to report safety concerns. Workers worried their workplaces are unsafe can phone 1-877-202-0008 to speak with an agent.

“If you’re a worker on the frontlines of this outbreak, you should know we’re doing everything in our power to keep you safe at work,” said Monte McNaughton, Minister of Labour, Training and Skills Development. “We’re beefing up our inspectors and making it easier for you to report your concerns. We’re working around the clock.”

COVID-19 Update: CEWS, CERB, SME Loans

April 1, 2020

The Government of Canada made several announcements today and clarified aspects of the COVID-19 Economic Response Plan designed to help businesses and laid off employees in the coming weeks and months.

The Plan is broken into 3 elements:


  1. COVID-19 Emergency Wage Subsidy (CEWS)
  2. COVID-19 Emergency Response Benefit (CERB)
  3. Small and Medium-sized Enterprise Loan and Guarantee program

I have summarized the main points of the three elements below. I hope you will find it informative. I will keep you apprised of any updates in regards to this plan or any other programs. 

COVID-19 Emergency Wage Subsidy (CEWS)

This measure is intended to ensure that workers are able to count on a source of income through this difficult time. It will enable employers to re-hire workers previously laid off, and to keep those who are already on payroll, so that Canada’s workforce and supply chains are able to return from this crisis in a strong position.

CEWS

  • Applies to eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019
  • Eligible employers include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
  • CEWS will apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. 
  • The program will be in place for a 12-week period, from March 15 to June 6, 2020.
  • An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. 
  • All employers will be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered. Employers will have to attest to doing everything they can to pay the remaining 25%
  • Severe penalties for companies trying to take advantage
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CEWS for Non-Profit companies and Registered Charities

  • For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances.
  • The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.

CEWS application

  • Eligible employers will be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. 
  • More details regarding how to apply for the program will follow. 

Organizations that do NOT qualify for CEWS

  • Those organizations that do NOT qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

More information can be found at: https://www.canada.ca/en/department-finance/news/2020/04/government-announces-details-of-the-canada-emergency-wage-subsidy-to-help-businesses-keep-canadians-in-their-jobs.html


COVID-19 Emergency Response Benefit (CERB)

The CERB will provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic as well as contract workers, freelance workers and self-employed individuals.

The CERB is available to:

  • wage earners who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19
  • working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. 
  • Freelance and laid off employees
  • Applications open beginning April 6 online at Canada.ca. Details will be announced
  • Applicants can choose to have payments by mail (will receive payment in 10 days) or direct deposit (will receive payment in 3-5 days)
  • Persons receiving CERB will be required to confirm every month that they are still out of work

Employees receiving CEWS are not eligible for CERB.

Employees who have already applied for EI do NOT need to register on April 6.

More information can be found at: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-benefits-credits-support-payments.html


Small and Medium-sized Enterprise Loan and Guarantee program

The new Small and Medium-sized Enterprise Loan and Guarantee program is intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements.

It will enable up to $40 billion in lending, supported through Export Development Canada (EDC) and Business Development Bank (BDC), for guaranteed loans when small businesses go to their financial institutions to help weather the impacts of COVID-19. 
In order to be eligible, businesses must have been impacted directly or indirectly by recent events and have been financially viable prior to the impact from COVID-19.

Small and Medium-sized Enterprise Loan and Guarantee program will operate as follows:

  • Small and medium-sized businesses can get support through a new Co-Lending Program that will bring the BDC together with financial institutions to co-lend term loans to these businesses for their operational cash flow requirements
  • Eligible businesses may obtain incremental credit amounts up to $6.25 million, 80 per cent of which would be provided by BDC, with the remaining 20% by a financial institution
  • EDC will also provide funding to financial institutions so that they can issue new operating credit and cash flow term loans of up to $6.25 million to small and medium-sized businesses, as a result of a new domestic mandate enhancing EDC’s role in supporting Canadian businesses through COVID-19 crisis.
  • These loans will be 80 per cent guaranteed by EDC, to be repaid within one year.
  • Eligible companies could obtain up to $12.5 million through these two lending streams.

More information can be found at: https://www.bdc.ca/en/pages/special-support.aspx

Canada Emergency Wage Subsidy

This morning, Prime Minister Trudeau provided important details on the government’s commitment to provide a 75% wage subsidy for businesses impacted by COVID-19.  

Canada Emergency Wage Subsidy details include:

See these other posts for more COVID-19 Employment Law information:
»» 
Webinar & Slide presentation: COVID-19 Ontario Workplace Issues: March 16
»» Temporary Layoffs: March 17
»» 
EI Sickness Benefits and Work Sharing: March 17
»» New Emergency Care Benefits and Supports: March 18
»»Amendment to Ontario Employment Standards: March 21
»» Supplementary Unemployment Benefit Plan (SUB Plan): March 21
»» Mobilizing Canadian Industry to Fight COVID-19: March 23
»» List of Essential workplaces
»» COVID-19 Emergency Response Act March 26

March 30, 2020

  • Will cover 75% of salary on the first $58,700 earned, back dated to March 15
  • Any business with at least a 30% revenue decrease because of COVID-19 qualifies
  • Number of employees does not matter
  • It applies to non-profits, charities and companies big and small
  • Funding to employers will be through a credit facility that is being established
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The Prime Minister warned that there will be serious consequences for any business that improperly uses this benefit.

He encouraged companies that are able to top up the remaining 25% for their employees to do so, reiterating that ‘Canadians are all in this together’.

This subsidy is in addition to the CERB that was announced previously to assist business owners and self-employed persons who have lost their employment.

Mr. Trudeau also indicated that Minister of Finance, Hon. Bill Morneau, and Minister of Small Business, Hon. Mary Ng, will provide a detailed briefing tomorrow with additional information.

COVID-19 Emergency Response Act

See these other posts for more COVID-19 Employment Law information:
»» 
Webinar & Slide presentation: COVID-19 Ontario Workplace Issues: March 16
»» Temporary Layoffs: March 17
»» 
EI Sickness Benefits and Work Sharing: March 17
»» New Emergency Care Benefits and Supports: March 18
»»Amendment to Ontario Employment Standards: March 21
»» Supplementary Unemployment Benefit Plan (SUB Plan): March 21
»» Mobilizing Canadian Industry to Fight COVID-19: March 23
»» List of Essential workplaces
»» Canada Emergency Wage Subsidy March 30

The Government of Canada’s COVID-19 Emergency Response Act received royal assent yesterday (march 25, 2020) and is now law.

Complete information can be found on the Government of Canada Website: https://www.canada.ca/en/department-finance/economic-response-plan/covid19-individuals.html

Canada Emergency Response Benefit (CERB)

This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.

The mechanics of the system are being implemented, abd it has been announced that the CERB will be accessible through a secure web portal starting in early April. Applicants will also be able to apply via an automated telephone line or via a toll-free number.

The CERB will provide a taxable benefit of $2,000 a month for up to 4 months to:

  • workers who must stop working due to COVID19 and do not have access to paid leave or other income support
  • workers who are sick, quarantined, or taking care of someone who is sick with COVID-19
  • working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures
  • workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work
  • wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.
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Employment Insurance Sickness Benefits

As outlined before, employees who are sick, quarantined or have been directed to self-isolate, will not be required to provide a medical certificate to access EI sickness benefits.

Employment Insurance

Employees who have been recently laid off or have reduced hours and qualify for Employment Insurance benefits, can submit their request today.

Deferment of filing date for income tax returns and income tax balances

The filing due date for the 2019 tax returns of individuals.(other than trusts), will be deferred until June 1, 2020.   

Any new income tax balances due, or instalments, will be deferred until after August 31, 2020 without incurring interest or penalties.

Note: For those who expect to receive benefits under the Goods and Services Tax credit or the Canada Child Benefit, the government encourages them to not delay their 2019 return filing to ensure that entitlements are properly determined.

Mortgage support

Canadian banks have committed to work with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. Canadians who are impacted by COVID-19 and experiencing financial hardship as a result should contact their financial institution regarding flexibility for a mortgage deferral. This allows flexibility to be available − when needed − to those who need it the most.

Contact your financial institution for further mortgage assistance.

The Canada Mortgage and Housing Corporation and other mortgage insurers offer tools to lenders that can assist homeowners who may be experiencing financial difficulty. These include payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.

Canada’s mortgage insurers are committed to providing homeowners with solutions to mitigate temporary financial hardship related to COVID-19.

This includes permitting lenders to defer up to six monthly mortgage payments (interest and principal) for impacted borrowers. Deferred payments are added to the outstanding principal balance and subsequently repaid throughout the life of the mortgage.

Special Goods and Services Tax credit payment for low and modest income families

A one-time special payment by will be provided by early May through the Goods and Services Tax credit for low- and modest-income families.
The average additional benefit will be close to $400 for single individuals and close to $600 for couples.
There is no need to apply for this payment. Those who are eligible will receive it automatically.

Reduced minimum withdrawals for Registered Retirement Income Funds

The required minimum withdrawals from Registered Retirement Income Funds (RRIFs) are being reduced by 25% for 2020.

Moratorium on the repayment of Canada Student Loans

Effective March 30, there will be a six-month interest-free moratorium on the repayment of Canada Student Loans for all student loan borrowers. No payment will be required and interest will not accrue during this time.
Students do not need to apply for the repayment pause.

Other Support and benefits

Canada Child Benefit
An extra $300 per child will be provided through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.
This benefit will be delivered as part of the scheduled CCB payment in May.
Those who already receive the Canada Child Benefit do not need to re-apply.

Indigenous Community Support Fund
The government will provide $305 million for a new distinctions-based Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.

Homelessness
The government will continue to support people experiencing homelessness during the COVID-19 outbreak by providing $157.5 million to the Reaching Home initiative.
The funding could be used for a range of needs such as purchasing beds and physical barriers for social distancing and securing accommodation to reduce overcrowding in shelters.

Women’s shelters and sexual assault centres
The government is supporting women and children fleeing violence by providing up to $50 million to women’s shelters and sexual assault centres to help with their capacity to manage or prevent an outbreak in their facilities.

List of essential workplaces

See these other posts for more COVID-19 Employment Law information:
»» 
Webinar & Slide presentation: COVID-19 Ontario Workplace Issues: March 16
»» Temporary Layoffs: March 17
»» 
EI Sickness Benefits and Work Sharing: March 17
»» New Emergency Care Benefits and Supports: March 18
»»Amendment to Ontario Employment Standards: March 21
»» Supplementary Unemployment Benefit Plan (SUB Plan): March 21
»» Mobilizing Canadian Industry to Fight COVID-19: March 23
»» COVID-19 Emergency Response Act March 26
»» Canada Emergency Wage Subsidy March 30

For the purposes of this order, businesses include any for-profit, non-profit or other entity providing the goods and services described herein.

This does not preclude the provision of work and services by entities not on this list either online, by telephone or by mail/delivery.

Note that teleworking and online commerce are permitted at all times for all businesses.

Supply chains

1.    Businesses that supply other essential businesses or essential services with the support, supplies, systems or services, including processing, packaging, distribution, delivery and maintenance necessary to operate;

Retail and Wholesaling

2.    Businesses engaged in the retail and wholesale sale of food, pet food and supplies, and household consumer products necessary to maintain the safety, sanitation and essential operations of residences and businesses, including grocery stores, supermarkets, convenience stores, markets and other similar retailers;

3.    Businesses that provide essential items for the health and welfare of animals, including feed, animal food, pet food and animal supplies including bedding;

4.    Beer, wine and liquor stores and alcohol producers, and stores that sell beer and wine through arrangements with authorized providers; cannabis stores and cannabis producers;

5.    Gas stations, diesel, propane and heating fuel providers including providers of motor vehicle, aircraft and water/marine craft fuels;

6.    Motor vehicle, auto-supply, auto and motor-vehicle-repair, including bicycle repair, aircraft repair, heavy equipment repair, watercraft/marine craft repairs, car and truck dealerships and related facilities;

7.    Hardware stores and stores that provide hardware products necessary to the essential operations of residences and businesses;

8.    Business providing pharmaceuticals and pharmaceutical services, including pharmacies and dispensaries;

9.    Businesses that supply office products and services, including providing computer products and related repair and maintenance services, for individuals working from home and for essential businesses;

10. Safety supply stores (for e.g. work clothes, Personal Protective Equipment);

Food Services and Accommodations

11. Restaurants and other food facilitiesthat prepare and serve food, but only for delivery or takeaway, together with food delivery services;

12. Hotels, motels, shared rental units and similar facilities, including student residences;

Institutional, Residential, Commercial and Industrial  Maintenance

13. Businesses that provide support and maintenance services, including urgent repair, to maintain the safety, security, sanitation and essential operation of institutional, commercial industrial and residential properties and buildings, including, property management services,plumbers, electricians, custodial/janitorial workers, cleaning services, , security services, fire safety and sprinkler systems, building systems maintenance and repair technicians and engineers, mechanics, (e.g. HVAC, escalator and elevator technicians), and other service providers who provide similar services

Telecommunications and IT Infrastructure/Service Providers

14. Businesses engaged in providing or supporting Information Technology (IT) including online services, software products and related services, as well as the technical facilities such as data centres and other network facilities necessary for their operation and delivery; 

15.  Businesses providing telecommunications services (phone, internet, radio, cell phones etc) as well as support facilities such as call centres necessary for their operation and delivery;

Transportation

16. Taxis and other private transportation providers providing transportation services necessary for activities of daily living;

17. Businesses and facilities that provide transportation services to businesses and individuals including by air, water, road, and rail including providing logistical support, distribution services, warehousing and storage, including truck stops and tow operators;

18. Businesses that provide materials and services for the operation, maintenance and safety of transportation systems (road, transit, rail, air and marine) including delivery of maintenance services such as clearing snow, response to collisions, and completing needed repairs to the transportation systems.

Manufacturing and Production

19. Businesses that extract, manufacture, process and distribute goods, products, equipment and materials, including businesses that manufacture inputs to other manufacturers (e.g. primary metal/ steel, blow molding, component manufacturers, chemicals, etc. that feed the end-product manufacturer);

20. Businesses, facilities and services that support and facilitate the two- way movement of essential goods within integrated North American and Global supply chains.

Agriculture and food production

21. Businesses that farm, harvest, process, manufacture, produce or distribute food, including beverages, crops, animal products and by-products, aquaculture, hunting and fishing;

22. Businesses that support the food supply chain including assembly yards, livestock auctions, food distribution hubs, feed mills, farm equipment suppliers, feed suppliers, food terminals and warehouses, animal slaughter plants and grain elevators;

23. Business that support the safety of food including animal and plant health and animal welfare;

24. Businesses that provide veterinary services, and that supply veterinary and animal control medications and related supplies and testing kits;

25. Businesses that help to ensure safe and effective waste management including deadstock, rendering, nutrient management, bio hazardous materials, green waste, packaging recycling;

Construction

26. Construction projects and services associated with the healthcare sector, including new facilities, expansions, renovations and conversion of spaces that could be repurposed for health care space;

27. Construction projects and services required to ensure safe and reliable operations of critical provincial infrastructure, including transit, transportation, energy and justice sectors beyond the day-to-day maintenance;

28. Construction work and services, including demolition services, in the industrial, commercial, institutional and residential sectors;

29. Construction work and services that supports health and safety environmental rehabilitation projects

Financial activities

30. Capital markets (e.g., the TSX);

31. Banking & Activities related to Credit Intermediation; credit unions;

32. Insurance;

33. Businesses that provide pension services and employee benefits services;

34. Businesses that provide financial services including payment processing, the payroll division of any employer (as defined by the Employment Standards Act/Occupational Health and Safety Act), any entity whose operation is the administration of payroll, banks and credit unions;

Resources

35. Businesses that ensure global continuity of supply of mining materials and products (e.g. metals such as copper, nickel and gold) and that support supply chains in Northern Ontario including;

a.    Mining operations, production and processing;  

b.    Mineral exploration and development;

c.     Mining Supply and Services that ssupport supply chains in the mining industry including maintenance of operations, health and safety. 

36. Businesses that provide chemicals and gases to support the natural resource sector analytical labs and drinking water and wastewater sectors and other essential businesses;

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37. Businesses that ensure global continuity of supply of forestry products (e.g. lumber, pulp, paper, wood fuel, etc.);

38. Businesses that ensure global continuity of supply of aggregates to support critical infrastructure repairs and emergency response requirements (e.g. sandbags, armour stone barriers, etc.);

39. Businesses that ensure global continuity of supply of petroleum and petroleum by-products;

Environmental Services

40. Businesses that support environmental management/monitoring and spill clean-up and response, including environmental consulting firms, professional engineers and geoscientists, septics haulers, well drillers, pesticides applicators and exterminators, management of industrial sewage/effluent (eg for mining operations), and environmental laboratories;

Utilities and Community Services

41. Utilities, and Businesses that support the provision of utilities and community services, including by providing products, materials and services needed for the delivery of utilities and community services:

a.    Waste Collection, Waste/ Sewage Treatment and Disposal, operation of landfills, and Hazardous Waste Disposal;

b.    Potable drinking water;

c.     Electricity Generation, transmission, distribution and storage;

d.    Natural Gas distribution, transmission and storage,

e.    Road construction and maintenance;

f.      police, fire, emergency services including coroner services and pathology services ;

g.    corrections and courts services;

h.    other government services including licenses and permits;

42. Businesses engaged in or supporting the operation, maintenance and repair of critical infrastructure (railways, dams, bridges, highways, erosion control structures, etc.);

Communications Industries

43. Newspaper publishers;

44. Radio & Television Broadcasting;

45. Telecommunications providers;

Research

46. Businesses and organizations that maintain research facilities and engage in research, including medical research and other research and development activities;

47. Businesses that provide products and services that support research activities;

Health Care and Seniors Care and Social Services

48. Organizations and providers that deliver home care services;

49. Retirement homes;

50. Long-term Care Facilities;

51. Independent health facilities;

52. Laboratories and specimen collection centres;

53. Manufacturers, wholesalers, distributors and retailers of pharmaceutical products and medical supplies, including medications, medical isotopes, vaccines and antivirals; medical devices and medical supplies

54. Manufacturers, logistics and distributors of products and/or services that support the delivery of health care in all locations (including but not limited to hospitals, labs, long-term care homes, other residential health care, physicians, nurse practitioners and midwives, and home care services);

55. Businesses that provide products and/or services that support the health sector or that provide health services, including mental health and addictions and counselling supports.

56. Businesses that sell, rent or repair assistive/mobility/medical devices, aids and/or supplies.

57. Businesses that provide personal support services (many seniors and persons with disabilities, who can afford to, hire individuals to assist with the activities of daily living).

58. Health care professionals providing emergency care including dentists optometrists and physio-therapists;

59. Not-for-profit organizations that provide critical personal support services in home and also provide residential services for individuals with physical disabilities (such as the Centre for Independent Living and March of Dimes);

60. Businesses and all other organizations that support the provision of food, shelter, safety or protection, and/or social services and other necessities of life to economically disadvantaged and other vulnerable individuals, including but not limited to food banks, violence against women emergency shelters, homeless shelters, community housing, supportive housing, children’s aid societies, residential services for adults with developmental disabilities and for children, and custody and detention programs for young persons in conflict with the law;

Justice Sector

61. Professional and social services that support the legal and justice system;

Other Businesses

62. Rental and leasing services, including automobile, commercial and light industrial machinery and equipment rental;

63. Businesses providing mailing, shipping, courier and delivery services, including post office boxes;

64. Laundromats, dry cleaners and laundry service providers;

65. Professional services including lawyers and para-legals, engineers, accountants, translators;

66. Businesses providing funeral, mortician, cremation, transfer, and burial services, and any related goods and products (such as coffins and embalming fluid);

67.  Land registration services, and real estate agent services and moving services;

68.  Businesses providing security services including private security guards; monitoring or surveillance equipment and services;

69. Businesses providing staffing services, including temporary help;

70. Businesses that support the safe operations of residences and essential businesses;

71. Businesses that provide for the health and welfare of animals, including veterinarians, farms, boarding kennels, stables, animal shelters, zoos, aquariums, research facilities and other service providers;

72. Child care services for essential workers, and home child care services of less than six children;

73. Businesses providing cheque cashing services;

Business Regulators and Inspectors

74. Organizations, including Administrative Authorities, that regulate and inspect businesses.

COVID-19: Ontario closes non-essential businesses

News Release

Ontario Orders the Mandatory Closure of All Non-Essential Workplaces to Fight Spread of COVID-19

New Measures to Further Protect the Health and Safety of the People of Ontario

March 23, 2020 1:30 P.M.

Office of the Premier

TORONTO — To further contain the spread of COVID-19, the Ontario Government will order the mandatory closure of all non-essential workplaces effective as of Tuesday, March 24th at 11:59 p.m. This closure will be in effect for 14 days with the possibility of extending this order as the situation evolves. A full list of businesses that are permitted to stay open will be released tomorrow.

“This was a tough decision, but the right decision, as this is no time for half measures,” said Premier Doug Ford. “But I have said from day one we will, and we must, take all steps necessary to slow the spread of COVID-19. The health and safety of every Ontarian must come first. The health of you, your children, your grandparents and friends depends on all of us doing our part.”

Businesses that can continue operations with employees working remotely, or through other contingency measures, are being given approximately 36 hours to prepare and adapt. Essential services may continue their operations to maintain supply chains and ensure the people of Ontario have access to necessities, including groceries, medicines and other essential products.

A 1-800 number and website will be made available on Wednesday for any inquiries.

“Based on the advice of Dr. Williams, Ontario’s Chief Medical Officer of Health, and the experts at our Command Table, Ontario is taking further action to contain the spread of COVID-19,” said Christine Elliott, Deputy Premier and Minister of Health. “These enhanced measures are necessary to protect the health and well-being of Ontarians. Nothing is more important.”

“Our top priority must be to protect the health of the people of Ontario,” said Rod Phillips, Minister of Finance. “Slowing the spread of COVID-19 will allow the people and the businesses of Ontario to move forward from this unprecedented situation.”

“Our government is listening to our public health officials to ensure we take the right actions to support the health and safety of Ontario job creators and workers,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “We are working directly with businesses and workers across all sectors to support them in any way possible through this crisis. We urge the business community to share their innovative ideas and capabilities to fight COVID-19 through our new portal Ontario Together at www.ontario.ca/OntarioTogether.”

Additional Resources

  • Visit Ontario’s website to learn more about how the province continues to protect Ontarians from COVID-19.
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