You are a business owner amid the chaos of COVID-19. Now what?
COVID-19 has forced many Canadians to take isolating action which has developed concern over the economic wellbeing of citizens. As of March 18, Prime Minister Justin Trudeau has proposed the initial response in Canada’s Economic Response Plan. This plan has generally won praise from business advocacy groups while offering opportunity for greater levels of economic stability. Lift Legal has experience in business law alongside a knowledgeable team of experts to ensure that you understand the most recent opportunities accessible to your business.
What does the first phase of Canada’s Economic Response Plan include?
- $27.4 billion in support for both workers and businesses
- $55 billion in tax deferral until September 2020
- $10 billion-plus business credit availability program for all sizes of business
- $500 billion credit and liquidity support
You are a small-medium sized business owner; will this plan help your employees?
- Yes. A temporary wage subsidy for the duration of three months is available to prevent layoffs and high revenue losses.
- The subsidy is 10 percent of the wages paid over that period.
- The maximum subsidy will be $1,375 per employee or $25,000 per employer.
- If you are a company eligible for the small business deduction, a charity or a non-profit you are able to receive these benefits immediately by reducing the payment of income tax withheld on employee’s pay.
How has the Canada Revenue Agency (CRA) responded?
- Any amount of income tax (such as balances due or instalments) that becomes owing between March 18, 2020, and September 2020 will be deferred by the CRA.
- No interest or penalties during this period will accumulate for these amounts.
- The CRA will suspend audit interactions temporarily for the next four weeks.
- The CRA liaison officer service is now available by phone for small businesses to understand tax obligations, filing, payment deadlines and COVID-19 related measures.
How does increased credit work to your favour?
The $10 billion business credit availability program will support businesses to find credit solutions from the Business Development Bank of Canada and Economic Development Canada in coordination from private-sector lenders. Credit solutions for individual businesses will be increased for many sectors such as air transportation, tourism, oil and gas and agri-food.
Want to know more?
Contact Lift Legal for more information on your rights as an employer or to better understand the current opportunities presented to your business. We strive to be the reliability your business deserves during this time of uncertainty and look forward to helping Canadian business prosper.