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As everyone is aware, COVID-19 continues to spread rapidly.

At Plugged-IN CPA the health and safety of our clients, employees, and community remains a top priority. Our office is currently closed to the public, however, we are committed to serving our clients needs throughout this uncertain time.

Important information for businesses

  1. Canada Emergency Wage Subsidy (CEWS) 75%

    • 12-week wage subsidy up to a maximum of $847 per week per employee. Employees with a salary of $58,700 is the upper limit covered by the program

    • Available to eligible employers (including sole proprietorship's and partnerships) that have lost at least 30% of revenue due to COVID-19 and will apply retroactively from March 15, 2020 to June 6, 2020.

    • Remuneration includes salary, wages, and other remuneration, not including severance pay, or items such as stock option benefits or the person use of corporate vehicle.

    • Tax implication – this is to be included in your business’s taxable income.

    • The government warns of severe penalties if this money is misused

    • Businesses can apply through their “mybusinessportal” on the CRA website

    • The subsidy will be distributed in three to six weeks.

    • The 10% wage subsidy previously announced is still in effect but if you qualify for the 75% you will no longer be eligible for the 10%

  2. Work-Sharing Program

    • A program designed to help eligible employers avoid layoffs when there is a temporary reduction in normal level of business activity, that is beyond the control of the employer.

    • The waiting period is temporarily waived and the length of time has been extended to 76 weeks.

    • Eligibility:

      • Experiencing a downturn in business activity related to COVID-19

      • Have been in business in Canada year-round for at least two years

      • Be a private business, publicly held company or a NFPO

      • Demonstrate that the shortage is temporary, and it is at least a 10% reduction

      • Submit a recovery plan

      • Have at least 2 employees

      • Employees must be eligible for EI and agree to a reduce their normal working hours

  3. Opportunities New Brunswick loan (small business)

    • The province will provide loans to help companies respond to new challenges associated to COVID-19

    • Loans will be up to $200,000

    • Contact Opportunities NB to apply

    • https://onbcanada.ca/

  4. Working capital support (mid to large employers)

    • Opportunities NB will work with mid to large companies to provide working capital in excess of $200,000

  5. WorkSafeNB deferral employer premiums

    • Premiums for February, March and April will be deferred for three months without interest charges.

    • Employers who report their payroll monthly, still need to report their payroll – even if it is $0

    • Annual filers can submit a revised payroll estimate representing the decrease in wages and WorkSafeNB will adjust their account.

  6. Business Property Tax

    • If businesses are closed as a result of COVID-19 late penalties on property taxes -due May 31 – will be reviewed on a case-by-case basis to see if the penalties can be waived

  7. Loan payment deferral

    • The government will defer principal and interest repayments for up to six months on existing loans. You have to contact the department that issued the loan to be approved

    • Most banks will defer loan payments. You have to contact your banker to be approved.

8. Commercial Leases

  • The province has declared that no commercial landlord shall give any tenant any sort of notice to quit, re-enter or re-possess demised premises or exercise any right of distress until May 31, 2020 for non-payment of rent that came due after March 19, 2020.

 

Important Information for employees

  1. One time income benefit

  2. Canadian Emergency Response Benefit (CERB)

    • Provides $2,000 per month to workers who qualify for the benefit for up to 16 weeks and is eligible for employees, self-employed and contract workers

    • Eligibility

      • At the time of the application, the individual is at least 15 years old

      • The individual is a resident of Canada

      • In 2019 or for the 12-month period preceding the date of the application, had at least $5,000 of employment or self-employment income, or other related benefits

      • The worker, whether employed or self-employed, ceases working for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which they apply for the payment

    • Replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit

    • EI or CERB?

      • All Canadians who have ceased working due to COVID-19, and who meet the eligibility requirements, whether they are EI-eligible or not, would be able to receive the CERB. Those who have not yet applied or who have applied but whose applications has yet been processed will receive benefits through the CERB program rather than EI.

  3. Student Loans

    • The federal government announced a six-month interest free moratorium on the repayment of Canada student loans.

    • The provincial government also announced a six-month interest-free moratorium on the repayment of provincial student loans

  4. Residential tenancies

    • Landlords do not have the right (until May 31, 2020) to require tenants to vacate for non-payment of rent

  5. New Brunswick Drug Plan

    • For the duration of the emergency, New Brunswickers who have drug coverage under the New Brunswick`s public drug plans are only responsible for the initial co-payment on a prescription fill or refill

    • This applies to all individuals that are on the public drug plan, including many seniors and low-income individuals.

 

Contact Us 

Tel - 506-455-5397

E-mail- info@pluggedincpa.com

Location - Fredericton, NB, Canada

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