Federal Government Supports for Businesses

Avoiding Layoffs and Rehiring Employees

Canada Emergency Wage Subsidy

The subsidy covers 75% of an employee’s wages – up to $847 per week – for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May.

The program will be in place for a 12-week period, from March 15 to June 6, 2020. Click HERE for more information.

Temporary 10% Wage Subsidy

The Temporary 10% Wage Subsidy is a three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).

Click HERE for more information.

Extending the Work-Sharing Program

The Federal Government is extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.

Click HERE for more information.

Temporary Changes to Canada Summer Jobs Program

The Federal Government is making temporary changes to the Canada Summer Jobs program to allow employers to:

  • receive an increased wage subsidy, so that private and public sector employers can also receive up to 100 per cent of the provincial or territorial minimum hourly wage for each employee;
  • extend the end date for employment to February 28, 2021;
  • adapt their projects and job activities;
  • hire staff on a part-time basis.

Click HERE for more information.

Deferred Payments

More Time to Pay Income Taxes

The Government allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.

No interest or penalties will accumulate on these amounts during this period.

Click HERE for information.

Deferral of Sales Tax Remittance and Customs Duty Payments until June

The Federal Government allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports.

Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.

Click HERE for more information.

Access to Credit

Establishing a Business Credit Availability Program

The Federal Government has established a Business Credit Availability Program (BCAP) to provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).

This program includes:

  • Loan Guarantee for Small and Medium-Sized Enterprises

    EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs.

  • Co-Lending Program for Small and Medium-Sized Enterprises

    BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.

    Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.

Click HERE for more information.

Canada Emergency Business Account

The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.

Click HERE for more information.

Supporting Financial Stability

Launching an Insured Mortgage Purchase Program

The Federal Government launched an Insured Mortgage Purchase Program, in which we will purchase up to $150 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation.

This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market.

Click HERE for more information.

Bank of Canada’s Actions

The Bank of Canada is acting in several ways to support the economy and financial system and stands ready to take any and all actions that it can to protect the well-being of Canadians during this difficult time. The Bank has responded by lowering interest rates, intervening to support key financial markets and providing liquidity support for financial institutions.

Click HERE for more information.

Office of the Superintendent of Financial Institutions Actions

The Office of the Superintendent of Financial Institutions announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.

Click HERE for more information.

Support for Self-employed Individuals

Canada Emergency Response Benefit (CERB)

The Federal Government will provide a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19.

Click HERE for more information.

Deferral of Sales Tax Remittance and Customs Duty Payments until June

The Federal Government is allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports.

Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.

Click HERE for more information.

More Time to Pay Income Taxes

We are allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.

No interest or penalties will accumulate on these amounts during this period.

Click HERE for more information.

Support for Industries

Increasing Credit Available for Agriculture, Fisheries and Aquaculture

The Federal Government has enabled Farm Credit Canada to provide an additional $5 billion in lending to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially sound during this difficult time.

Click HERE for more information.

Support for Tourism Operators

The Federal Government will work with tourism operators in national parks, historic sites, and marine conservation areas to defer payments on commercial leases and licences of occupation without interest until September 1, 2020.

Provincial Government Supports

Provincial Financial Relief

Interest and Penalty Relief

Businesses will get five months of interest and penalty relief to file and make payments for the majority of provincially administered taxes.

Between April 1, 2020 and August 31, 2020, the province will not apply any penalty or interest on any late-filed returns or incomplete or late tax payments under select provincially administered taxes, such as Employer Health Tax, Tobacco Tax and Gas Tax.

Click HERE for more information.

Education property tax deferrals

The Provincial Government has deferred the June 30 property tax payments municipalities make to school boards by 90 days.

Click HERE for more information.

WSIB Payment Deferral

Employers can defer Workplace Safety and Insurance Board (WSIB) payments for up to six months.

All employers covered by the WSIB’s workplace insurance are automatically eligible for the financial relief package.

  • Schedule 1 employers who owe premiums to the WSIB will be allowed to defer reporting and payments until August 1, 2020.
  • Schedule 2 businesses that pay WSIB for the cost related to their workplace injury and illness claims can defer reporting and payments until August 31, 2020

Click HERE for more information.

Provincial Tax Relief

Employer Health Tax Relief

The Provincial Government is increasing the Employer Health Tax (EHT) exemption for 2020 from $490,000 to $1 million. As an employer, this means relief of up to $9,945.

Click HERE for more information.

Regional Opportunities Investment Tax Credit

If you are building, renovating or acquiring commercial or industrial buildings in designated regions in Ontario, you could be eligible to save up to $50,000 this year.

Click HERE for more information.

City of Ottawa Supports

City of Ottawa Tax Deferral Programs

2020 Property Tax Hardship Deferral Program

Financially affected residential and commercial property owners with an assessed property value of up to $7.5 million can apply to defer payment of 2020 property taxes to October 31, 2020.

Click HERE for more information.

Property Tax and Water Utility Deferral Programs

Deferral programs to assist low-income seniors and persons with disabilities.

Click HERE for more information.

Farm Grant Program

Program to assist eligible farm property owners by deferring the June 2020 final tax installment to December.

Click HERE for more information.

Corporate Real Estate

Rental adjustment for businesses renting space within a closed City facility; the adjustment will reflect the amount of time facilities remain closed.

Click HERE for more information.