Dear Client and Friend, ‘Lean On Me’ and ‘Ain’t No Sunshine’ are tunes my family grew up with. Bill Withers passed away this week, may his classics offer comfort to all of us including our health care workers during this pandemic.
Below I have highlighted important resources for your review, including the Government of Canada, Canada Revenue Agency (CRA), Province of Ontario, and Chartered Professional Accountants of Canada (CPA), and when you can expect to receive assistance if deemed eligible. I have included real time experiences along with my Silver Linings.
Support for Individuals:
If you have lost your job because of Covid-19, there is a now a direct Government of Canada EI link for you to apply today, click below:
Apply for Employment Insurance benefits<https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/apply.html>
If you stopped working due to Covid-19, the Canada Emergency Response Benefit (CERB), $2,000 per month, will be available starting Monday April 6 for both the employed and self-employed. Get ready to apply by clicking on the Canada Revenue Agency link below. There are two ways to apply, online by setting up CRA My Account, or over the phone 1-800-959-2019. I suggest online application because CRA staff has been reduced and response by telephone may be slow.
Canada Revenue Agency<https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html>.
Which is better for employees, applying for EI or applying for the CERB? As income rises, the CERB becomes less attractive. The maximum payment under the CERB is $500 a week, but EI weekly payments top out at $572 a 14-per-cent gap. Once a worker’s annual income exceeds $47,272, he or she would be better off under EI than the new program (Globe and Mail, March 27, 2020).
Support for Businesses:
I attended a CPA Canada webinar yesterday to clarify the original 10% and the new 75% wage subsidies offered to businesses, and it is important to note the following:
The new 75% wage subsidy does not replace the 10% wage subsidy introduced earlier. It has been up and running, so click on the link below to start claiming the subsidy by reducing payroll remittances for your eligible small business:
Wage subsidy of 10 per cent of remuneration<https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html>
The new 75% wage subsidy is still being finalized. It will be available for both large and small businesses, which will have to show a 30% drop in revenues compared to the same months from 2019. Note that a 30% drop in revenues is not required for the 10% wage subsidy for eligible small businesses.
If your business is eligible for both the 10% and 75% wage subsidy, claims made under one subsidy will reduce the claims made under the other subsidy.
The 75% subsidy will be a taxable payment to the business, as it is considered government assistance, whereas the 10% subsidy is not a payment, but a reduction of payroll remittances.
Real Time Experiences
Clients have been asking me how they can rejig their businesses or use their skills to provide assistance during this time. Click on the Province of Ontario link to submit your ideas.
Examples of rent negotiations with landlords have included an incremental 20%, 40%, 60%, 80%, 100% payment of the rent amount over the next 5 months.
Silver Linings
Respecting physical distancing, take in the garage driveway drawings made with chalk by kids in your neighborhood.
Board games are popular again.
People are listening to the radio more. I've been enjoying my transistor radio on my walks.
Boredom is part of being-in-the world. If you are lucky enough to feel bored right now, seize the opportunity to look within (Mark Kingwell, Professor of philosophy at the University of Toronto, Globe and Mail, April 4, 2020).
If you would like to refer to my previous Covid-19 emails, please visit my blog on my website.