FrontRunner Covid-19 Response Employment Tool-Kit (Canada)

1.    Government of Canada Wage Subsidy

The Government of Canada recently announced federal wage subsidy to cover three-quarters (75%) of salaries that will go to any company — large, medium or small — charity or non-profit that can show it has seen revenues drop sharply due to COVID-19. The subsidy is meant to cushion the blow from the pandemic will be available to employers that can show their revenues have fallen by at least 30 per cent due to COVID-19. The wages the subsidy covers will be capped at $847 a week and backdated to March 15th.

Additional Commentary:

The additional details regarding the 75% wage subsidy and other programs has been delayed until April 1, 2020 at 2:00 PM EST.

What we currently know about the wage subsidy:

• The government will subsidize up to 75 percent of employee wages for eligible employers, backdated to March 15, 2020.
• An eligible employer is any business whose revenue has decreased by 30 percent or more due to the pandemic. This definition includes businesses of all sizes, as well as non-profit organizations and charities.
• The 75 percent subsidy will apply to the first $58,700 of salary per employee, resulting in a maximum subsidy of $847 per employee per week.

What we still need to know about the wage subsidy:

• Which types of employers qualify for the subsidy (i.e. corporations, individuals and partnerships)?
• How will the 30 percent decline in revenue be measured?
• Does the subsidy apply to employees who are also shareholders of a company in the case of a family business?
• How do the existing programs (including the Work-Sharing Program and the Canadian Emergency Relief Benefit (CERB)) interface with the wage subsidy program to provide benefits and support to employees, including seasonal, contract and commission-based workers?
• How will the subsidy be distributed to recipients?

2.    Canada Emergency Response Benefit:

To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.

The CERB covers Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.

The application page is not yet live (Expected April 6th). The website includes the most recent information available: https://www.canada.ca/en/department-finance/news/2020/03/introduces-canada-emergency-response-benefit-to-help-workers-and-businesses.html

3.    Employment Insurance (EI):

To receive regular EI, you must have lost your job through no fault of your own, including layoffs - which is accurate in your case. EI sickness benefits include being unable to work because of illness or quarantine. Under last week’s EI changes, the one-week waiting period for sickness benefits will be removed for those who have been told to self-isolate or quarantine, meaning applicants can be paid for the first week of their claim. We include this option only because you are in a self-isolating scenario as is the majority of the population at this point.

In terms of specifics, Canadians who are eligible will receive 55 per cent of their salary or a maximum of $573 per week for between 14 weeks and a maximum of 45 weeks. The length of the payments is tied to the unemployment rate in an applicant’s region and the number of insurable hours they’ve worked in the past 52 weeks or since their last EI application. Reaching the maximum 45 weeks would require working a minimum of 1,785 to 1,819 hours in the past year and an unemployment rate of 10.1 to 11 per cent or 1,330 to 1,364 hours worked alongside a 16 per cent unemployment rate.

Process:

Gather supporting documents – You must have your records of employment (ROEs), but a medical certificate won’t be necessary for those who have been asked to self-isolate or quarantine. Service Canada advises people to apply right away even if you don’t have these documents as you can send them in later.

Complete the online application – This includes making sure you have: the names and addresses of your employers in the last 52 weeks, the dates employed with each employer and the reasons you’re no longer employed, and personal information including mailing address, Social Insurance Number (SIN), and banking information.

Provide supporting documents - You can visit My Service Canada Account (MSCA) to view ROEs that have been issued to you by past and current employers.

Receive access code by mail – Service Canada will mail you a benefit statement, which includes a 4-digit access code. You need this code and your SIN to get updates about your application and to complete biweekly reports.

Review your application status.

Application Information: To apply for EI benefits, you can visit the website. Afterwards, you can apply to have the one-week waiting period waived by calling the government's toll-free number at 1-833-381-2725, or teletypewriter at 1-800-529-3742. It is also possible to apply in person at a Service Canada office, though those who are experiencing symptoms, or are in self-isolation or quarantine are instructed not to visit.

4.    Personal Income Tax:

Personal income tax filing deadline has been extended to June 1 if, by chance, you have not submitted. Taxpayers have also been granted deferral until after August 31 for tax payments that are due after today and before September.

5.    GST:

One time special credit of $400.00 for singles and $600.00 for couples. Does not require an application.

6.    Student Loan:

Six month interest free reprieve from paying student loans. If you have student loans, you should take advantage of this support.

7.    Canada Child Benefit:

Parents facing uncertainty amidst calls to work from home or curtailed hours will also see a “boost” to the Canada Child Benefit (CCB) in the coming months. Families receiving the CCB will see an increase of $550 on average, with an additional $300 extra per child as part of the May payment.