Announcements from the federal government in with respect to the financial aid available in response to the COVID-19 crisis have become a near daily occurrence. Today was no exception.
Further to its recent announcement of the Temporary Wage Subsidy for Employers (“TWS”) - the details of which are set out in our March 26, 2020 article COVID-19: An Update to the Federal Aid Package Now Called the Canada Emergency Response Benefit (“CERB”) - Prime Minister Justin Trudeau announced a major boost to the TWS on March 27, 2020.
While the TWS was initially only going to allow eligible employers to reduce the amount of payroll deductions required to be remitted to the CRA by 10% of the remuneration paid by an employer between March 18 and June 20, 2020, that amount has now been increased to 75% (and is backdated to March 15, 2020).
In addition, Prime Minister Trudeau also announced:
Guaranteed bank loans of up to $40,000 for small business which will be interest-free for the first year. In certain circumstances, up to $10,000 for the loans could be non-repayable; and,
That GST and HST payments, as well as duties and taxes owed on imports, will be deferred until June.
The increase to the TWS and newly-announced financial aid measures are aimed at avoiding layoffs and business closures in response to the COVID-19 crisis.
Details of these new programs are expected by Monday, March 30, 2020.
Scott Venturo Rudakoff’s employment group will is here to assist employers and employees navigate the uncertainty surrounding layoffs and terminations created by the COVID-19 situation. Do not hesitate to call or email any of our employment law practice members if you have a question about your obligations as an employer or rights as an employee.
Prepared by Laura Bracco-Callaghan
No Legal Advice. This article is provided solely for information purposes. The information presented does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice.