|What we learned over the weekend
- Once businesses choose a reference period to show their lost revenue (either March - May 2019 or Jan-Feb 2020) they will have to use that reference period for each claiming period
- Employers will be required to repay amounts paid under the CEWS if they do not meet eligibility requirements. Fraudulent claims will result in fines or imprisonment. Employers engaging in artificial transaction to reduce revenue for the purpose of claiming the CEWS will be subject to a penalty equal to 25% of the value of the subsidy claimed (along with the amount of the subsidy)
- The subsidy counts as government assistance, and will be included in the employers taxable income
- In order to provide certainty to employers, once a business is found eligible for a specific period, they will automatically qualify for the next period. Here's an example from the government:
ABC Inc. is a start-up that started its operations last September. It reported revenues of $100,000 in January and $140,000 in February, for a monthly average of $120,000. In March, its revenues dropped to $90,000. Because revenues in March are 25% lower than $120,000, ABC Inc. would be eligible for the CEWS for the first and second claiming period. To be eligible for the third claiming period, ABC Inc. revenues would have to be $84,000 or less for the month of April or May (that is, 30% lower than $120,000).
The amount of wage subsidy (provided under the COVID-19 Economic Response Plan) received by the employer in a given month is ignored for the purpose of measuring year-over-year changes in monthly revenues.
What we're still waiting to find out
The biggest piece of information we are waiting on is when applications will open. The government has only said they will be accepting applications "shortly".
In order to make sure you're ready, we suggest making sure you have access to your business CRA MyAccount service, as it appears that's what will be used to process applications.
Province to provide CEWS application support
Manitoba Premier Brian Pallister announced on Monday the province has contracted local call centre 24-7 Intouch to help inform and assist local businesses about both the Canada Emergency Wage Subsidy and the Canada Emergency Business Account.
While we're still waiting on details about this program, Pallister mentioned 24-7 Intouch would be taking in-bound calls to help businesses with their applications. We're hopeful this service can help businesses easily apply and receive the help they need.
More Hand Sanitizer Available
WCA has received another shipment of Hand Sanitizer from Patent 5 Distillery. We're selling it at cost ($10/250 ml bottle) to members.
As demand is currently incredibly high, we're limiting member companies to 10 bottles each at this time. Any transactions for more than 10 bottles will be cancelled.
In order to make sure these bottles are going out to members, you'll need to log in to your WCA account to access the order form. The link below will take you to the order form and prompt you to sign in.
You can access the order form here.
COVID-19 Free Webinars from TDS Law
WCA is hosting two free webinars hosted by TDS Law next week
COVID-19 Impact on the Workplace
Tuesday, April 21 @ 8:30 (45 minutes)
The COVID-19 pandemic has had a significant, unprecedented impact to the workforce. Join TDS as they discuss a number of labour and employment topics; such as the process of lay-offs and human rights issues, what to do if an employee refuses to come to work because of COVID-19, and practices to put in place if an employee test positive.
Click here to register for free
Thursday, April 23 @ 8:30 (45 minutes)
COVID-19 & Contracts: Force Majeure?
Can you get out of a contract due to the COVID-19 pandemic? Join TDS as they discuss the force majeure clause and contractual aspects impacted by the current COVID-19 pandemic.
We will also review the impact COVID-19 has on liens and claims for payment. And we’ll look at practical solutions to work with the recent changes at the Land Titles Office and Queen’s Bench.
Click here to register for free