Skip to content
BARGAINBLOG.CA

BARGAINBLOG.CA

Because everyone deserves a good deal. Eh?

  • Home
  • About

Tag: CEBA

Posted on May 7, 2020May 7, 2020

Canada Emergency Wage Subsidy Program, What is it?

A picture to denote someone looking at the options of the Canada Emergency Wage Subsidy Program.

You might be wondering what is the Canada Emergency Wage Subsidy Program (CEWS) all about? It is an important question because many business owners are suffering right now due to COVID-19. They want to remain open and keep their staff employed, but many do not understand the specifics of this program that is supposed to help them. Let’s provide some clarity to this program.

What is the Canada Emergency Wage Subsidy Program (CEWS)?

It is a wage subsidy program for businesses whose revenues have been negatively affected by the coronavirus outbreak. The amount of the wage subsidy is 75% of employees wages for a 12 week period from March 15, 2020 to June 6, 2020. The purpose of the subsidy is to rehire previously laid off workers as a result of Covid-19 to prevent further job losses and put businesses in a better position to recover after the crisis passes. For more information, go to the Government of Canada’s website.

Canada Wage Emergency Subsidy Program (CEWS): Who is Eligible?

In a nutshell you eligible for this Government of Canada program if you are an employer who has experienced a reduction in revenue and had a CRA payroll account on March 15, 2020. The Government of Canada’s website has a list of eligible employers but the only ineligible employers appear to be public institutions such as municipalities and local governments, Crown corporations, public universities, colleges, schools and hospitals.

You Must Also Have an Eligible Reduction

Besides being an eligible employer, you must also have an eligible wage reduction. What is that? You are basically comparing your normal monthly revenue with the the 3 months affected by Covid-19 (March 2020, April 2020, May 2020). However, there are 2 choices to choose from to use as your normal monthly revenue. (This refers to pre-coronavirus revenue.)

Option 1 is to use your revenue from the corresponding month of the previous year. This means you would use March 2019 as your normal revenue period and compare it with March 2020 and there should be a revenue drop of at least 15% to be eligible for that period. You would then use April 2019 and compare with April 2020 and there should be a revenue drop of 30% to be eligible for that period. Finally, you would use May 2019 and compare with May 2020 and there should be a revenue drop of 30% to be eligible for that period.

Option 2 is that you take the average monthly revenue for January and February 2020 and compare this with March 2020, April 2020, and May 2020. You would be eligible for subsidy for a particular month if there is a reduction in revenue of at least 15% in March, 30% in April, and 30% in May.

Here’s is a warning, however. Whatever option of comparing revenue you choose, you have to stick to using that option when calculating the revenue reduction of each month. You cannot switch between options.

Who are Eligible Employees for the Canada Emergency Wage Subsidy Program ?

They are employees hired by you and who have not been paid by you for less than 14 consecutive days. Employees whom you have laid off can become eligible if you rehire and retroactively pay them. You must do this before you can include them in your calculation of the wage subsidy.

How to Calculate the Wage Subsidy?

At the Government of Canada’s website, there is an Excel spreadsheet and a calculator to help you calculate this amount. It is based on the following information below:

  • the number and type of eligible employees you have, and
  • the amount and type of pay in respect of a period they received before and during the crisis

Note: There is no limit on the total subsidy amount that an eligible employer may claim.

How to Apply for the Canada Emergency Wage Subsidy Program?

The government’s website shows 3 ways you can apply below:

  1. Most businesses may apply using My Business Account
    • Sign in to My Business Account
    • Register for My Business Account
  2. Business representatives may apply using Represent a Client
    Note: Only representatives authorized at Level 2 or 3 will be able to apply
    • Sign in to Represent a Client
    • Register for Represent a ClientDownload: Attestation for owner/managers and/or senior employees
  3. If neither are an option for you, use the Web Forms application with your web access code. If you do not have a web access code, you will need to provide the date of registration or the total income tax reported in box 22 of the most recent original 2018 tax year submitted T4 summary.
    • Sign in to the Web Forms application
    • Get a web access code

When Will you Get Paid?

The government’s website says that you can get paid within 10 days of applying if you have direct deposit. If you are getting paid by cheque, this will take a bit longer.

Also of note, the Canada Wage Subsidy is taxable and therefore you will have include it on your tax return as taxable income.

Conclusion

The Canada Emergency Wage Subsidy Program may appear to be a complicated and detailed program to apply for. However, it could be very beneficial as it helps you cover most of your employees’ wages for a 3 month period. One benefit is that you can get money fairly quickly once you apply. It is something that businesses in Canada should seriously look into. Because it could make the difference between staying open and closing for good.

You Might Also Like: The CEBA Program for small business

Posted on April 27, 2020April 27, 2020

CEBA Program Details For Small Businesses

An opening sign to denote a business using CEBA program details to stay open and surviive through covid-19.

CEBA program details is something that many Canadian business owners are looking for today as many businesses have had to shut their doors due to the COVID-19 pandemic. However, due to the stress of their business shutting down and the financial burden that follows, many do not know where to start and feel overwhelmed. Hopefully, this article can help make things clearer.

CEBA Program Details – What is CEBA?

CEBA stands for the Canada Emergency Business Account and is a federal government loan program that provides small and medium-sized businesses with a limited-time, interest-free loan of up to $40,000. For more details on CEBA visit https://ceba-cuec.ca/. Here are some of the details of the program as provided to me by one of the banks that I deal with First Calgary below:

The CEBA Loan Includes:

  • $40,000 loan at 0% interest until December 31, 2022
  • No minimum monthly principal payments required until December 31, 2022
  • $10,000 loan forgiveness is available, provided outstanding balance is $40,000 at December 31, 2020, and $30,000 is paid back between January 1, 2021 and December 31, 2022.
  • Payments can be voluntarily made at any time without fees or penalties

CEBA Program Details – Who is Eligible?

Who is eligible to apply for the CEBA program? Here is the list of criteria from the Government of Canada’s website below:

  • The Borrower is a Canadian operating business in operation as of March 1, 2020.
  • The Borrower has a federal tax registration.
  • The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000.
  • The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
  • The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
  • Borrower acknowledges its intention to continue to operate its business or to resume operations.
  • The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.

CEBA Program Details – How to apply?

You apply through your financial institution and most of them should have this program available to you. You can either call or go in to speak to someone about it. However, an even easier way is to apply online at your financial institution. For example if you go to First Calgary’s website, you are presented with the following details below:

HOW DO I APPLY FOR CEBA?

For your convenience you can apply from home using our online application. Our team of advisors will contact you once your application has been received to discuss next steps. 

FOR A SPEEDY EXPERIENCE, PLEASE HAVE THE FOLLOWING INFORMATION ON HAND:

2019 T4 Summary of Remuneration Paid (T4SUM) that shows an annual payroll of between $20,000 and $1.5 million (if you cannot locate your T4SUM, contact the Canada Revenue Agency to have them reissue it to you)

A 15-digit Canada Revenue Agency Number also shown on the T4SUM

Business contact information, including phone number and email address.

APPLY NOW

Conclusion

Finding out what you can apply for in this climate can be a challenge. However, it is important to know what options you have. For many small businesses, this program could be the difference between surviving or dying. So have a look and see if the CEBA program details fits you and your business. Because in this COVID-19 world, information is power.

Search

Send an Amazon eGift Card

Our Recent Posts

  • Canada Mortgage Rates as of January 11, 2021
  • Diaper Sales this Week at: Safeway, Shoppers, Walmart, Superstore, Amazon and more (Diaper deals Canada)
  • TD Bank Customer Service – Phone numbers and email
  • PC Optimum Points this Week – Bonus points, offers & sales at Shoppers Drug Mart
  • A&W Free Coffee Event – Free Coffee in Canada – until January 17, 2021

Trending Posts

  • A person on a calculator to denote someone calculating their budgeting based on CERB ends and being replaced by new EI, CRB, CRSB and CRCB programs.
    CPP and OAS Payment Dates 2021 – Canada Pension Plan payments and Old Age Security
    December 21, 2020
    By christinam | 3 Comments
  • 10 Best Frugal Living Blogs
    January 4, 2021
    By christinam | 0 Comments
  • A person on a calculator to denote someone calculating their budgeting based on CERB ends and being replaced by new EI, CRB, CRSB and CRCB programs.
    How much will my OAS payment be? Old Age Security payment questions
    December 28, 2020
    By christinam | 0 Comments
  • Cool Kitchen Gadgets in Canada – 5 of our Favourite Kitchen Tools for under $25.00
    January 4, 2021
    By christinam | 0 Comments
  • PC Optimum Points this Week – Bonus points, offers & sales at Shoppers Drug Mart
    January 7, 2021
    By christinam | 1 Comment
Glasses from $9

Categories

  • 50% off
  • Aeroplan
  • Amazon
  • Automotive
  • baby
  • Banking
  • bargain of the day
  • Bath
  • Beauty Deals
  • bedding
  • bills
  • Blog Hopping and Bargain Hunting
  • BMO
  • Bokksu
  • Books
    • Book Outlet
  • check out 51
  • Chocolate
  • Cleaning Tips
  • Clearly.ca
  • clothing
    • men's clothing
  • Coffee
  • computers and accessories
  • coronavirus
  • Costco
  • Coupons
  • CPP
  • Crafts and Hobbies
  • credit card
  • Customer Service numbers
  • Debt
  • Decor
  • Diaper Deals
  • Dollarama
  • eco friendly
  • Entertainment
  • Eyewear
  • Fiverr
  • Flyers
  • Free Shipping
  • Freebies
  • frugal living
  • Furniture
  • Giant Tiger
  • gift card
  • Gift Ideas
  • grants and benefits
  • grocery bargains
  • grocery deals
  • Health and Beauty
  • Home and Garden
  • HP
  • Indigo
  • Joe Fresh
  • Kids
  • kitchen gadgets
  • laptops
  • Linen Chest
  • Linens
  • local shops
  • Make Money Online
  • Making money
  • money
  • Mr. Big & Tall
  • Natural health tips
  • No Frills
  • No Frills Calgary
  • Nordstrom
  • OAS
  • Old Navy
  • online business services
  • Online shopping
  • Overstock
  • PC optimum
  • Personal Finance
  • pets
  • Promo codes
  • Royal Bank
  • Save on Foods
  • scotia bank
  • Scotiabank
  • Shoppers Drug Mart
  • small appliances
  • starbucks
  • Superstore
  • Target
  • TD Bank
  • The Thrifty Three
  • travel
    • expedia
  • Uncategorized
  • Under $5
  • Under Armour
  • Wagjag
  • Walmart
  • Wayfair
  • Well.ca
  • women's clothing
  • Yves Rocher
Be Rewarded with the Web's Premiere Rewards Site

Get Updates On Our Latest Posts

Search

Proudly powered by WordPress