As the COVID-19 situation evolves, the Canadian government has made important updates to several relief programs to better assist individuals and businesses during these challenging times. In this blog post, we’ll highlight the recent changes to the Canada Emergency Business Account (CEBA), the Canada Emergency Wage Subsidy (CEWS), and the Canada Emergency Response Benefit (CERB) and how they impact eligibility and support.
Changes to CEBA: Increased Payroll Threshold and New Option
The CEBA, offering interest-free loans to businesses, has been expanded to accommodate a wider range of organizations. The payroll threshold has been adjusted from $50,000-$1 million to $20,000-$1.5 million in total payroll in 2019, allowing more businesses to qualify. Additionally, new criteria now permit companies to apply for CEBA if they can demonstrate $40,000 in eligible non-deferrable expenses between January to December 2020. The extended application deadline is now October 31, 2020.
CEWS Changes – A Detailed Overview
The CEWS program, aimed at supporting employers in retaining staff, underwent significant modifications in July 2020. We delve into the updated subsidy calculations, introducing base and top-up subsidies based on revenue decline percentages. The changes offer more flexibility, allowing some decline in revenue to qualify for subsidies. The post provides a comprehensive summary of the evolving CEWS rules and important considerations for employers.
CERB – More Individuals Now Qualify
The CERB, providing financial assistance to individuals impacted by COVID-19, has undergone a crucial change. Individuals can now earn up to $1,000 per month while still being eligible for the benefit. This update expands the number of individuals who can access the CERB, offering much-needed relief to those affected by reduced income due to the pandemic.
The ever-changing landscape of COVID-19 relief programs demands continuous updates and accurate understanding to make the most of available support. In this blog post, we’ve covered the latest changes to CEBA, CEWS, and CERB, empowering individuals and businesses to navigate the evolving relief measures effectively. We encourage reaching out to our expert accounting team for guidance and assistance in ensuring you meet eligibility criteria and accurately apply for the appropriate relief programs. Together, we can overcome the challenges posed by the pandemic and build a more resilient future for Canada.