The COVID-19 pandemic has had far-reaching impacts on Canadian businesses and their employees. Over the past couple weeks, various levels of governments have been implementing financial relief programs for businesses and employees to mitigate the losses and impacts of COVID-19. This article provides a summary of some of the provincial and federal benefit programs relevant for employers and employees.

Federal

The Canadian government has introduced the Canada Emergency Response Benefit to help workers who have been impacted by COVID-19. For more information on the Canada Emergency Response Benefit please see our article specific to that benefit.

Additionally, the Canadian government has introduced a variety of benefits for businesses, including:

• Extending the duration of the work-sharing program to 76 weeks and waiving the mandatory waiting period to support employers and employees who are experiencing a downturn in business;
• Creating a new Business Credit Availability Program to make $10B available to businesses through Export Development Canada and the Business Development Bank of Canada;
• Deferring tax payments until August 31, 2020; and
• Working with the financial sector to ensure an additional $300B in lending capacity is available for small businesses across the country.

Further, on March 27, 2020 the Canadian Government announced additional benefits for small businesses including:

• Increasing the wage subsidy for small and medium-sized businesses from 10% of employee salaries to 75%;
• Allowing businesses to defer all Goods and Services Tax/Harmonized Sales Tax payments until June, as well as customs payments for imports;
• Launching the new Canada Emergency Business Account to provide funding to eligible financial institutions so they can provide lines of credit of up to $40,000 to businesses with payrolls of less than $1M ($10,000 of which is eligible for forgiveness); and
• Launching the Small and Medium-Sized Enterprise Loan and Guarantee program that will provide $40B in lending for guaranteed loans for small businesses going to their financial institution.

On March 30, 2020, further details on the 75% wage subsidy were provided. The wage subsidy is backdated to March 15, 2020, and will cover 75% of employee salaries up to $58,700/year ($847/week). The wage subsidy applies to employers regardless of the number of employees they have. To be eligible, employers must have their revenue decrease by 30% because of COVID-19. Lastly, the Prime Minister has asked businesses to pay the remaining 25% if they can, and explicitly warned businesses that there will be serious repercussions to employers who try to “game” this subsidy for their own gain.

British Columbia

The British Columbia Government has created the BC Emergency Benefit for Workers. This benefit will provide a one-time payment of up to $1,000 for people who have lost income because of COVID-19. British Columbia residents who receive Employment Insurance or the Canada Emergency Response Benefit are eligible for the BC Emergency Benefit for Workers.

In addition, the British Columbia Government has announced a variety of other supports for businesses, including:

• Deferring filing and payment deadlines for:
• Employer Health Tax
• Provincial Sales tax
• Carbon Tax
• Motor Fuel Tax
• Tobacco Tax
• Indefinitely postponing the provincial sales tax changes announced as part of the Provincial Budget;
• Indefinitely delaying the Carbon Tax increase; and
• Reducing the school tax rates for commercial properties by 50% for the 2020 tax year.

Finally, the British Columbia Government has announced $1.5B in provincial funding to support economic stimulus once the COVID-19 pandemic has passed.

Alberta

The Alberta Government has implemented an Emergency Isolation Support Fund, which has allocated $50M for emergency isolation support to bridge the gap until federal emergency payments begin. Individuals are able to receive a one-time payment of $1,146 if (i) they have to self-isolate or are the sole caregivers for dependents who must self-isolate, and (ii) they do not have another source of pay or compensation, including Employment Insurance, while they self-isolate. Applications for emergency isolation support opened on March 25, 2020.

In addition, the Alberta Government has announced a variety of other supports for employers and employees, including:

• Deferring corporate income tax balances and instalments until August 31, 2020;
• Freezing the education property tax rates and deferring the collection of non-residential education property tax for 6 months;
• Deferring the Workers’ Compensation Board Alberta premium payments until 2021, and for small and medium businesses, the government will cover 50% of the 2020 premium when it is due;
• Deferring utility payments for 90 days;
• Deferring the tourism levy for hotels and lodging providers until August 31, 2020 for amounts that become due on or after March 27, 2020; and
• Allowing ATB small business customers and other businesses on a case-by-case basis, to apply for a payment deferral on loans and lines of credit up to 6 months, as well as access additional working capital.

Saskatchewan

The Saskatchewan Government has introduced a Self-Isolation Support Program for Saskatchewan workers forced to self-isolate who are not covered by Employment Insurance or other federal supports. The Self-Isolation Support Program provides a support payment of $450 per week for up to two weeks. To be eligible, residents of Saskatchewan must:

• Have contracted COVID-19 and show symptoms, been in contact with an individual infected with COVID-19, or recently returned from international travel and required to self-isolate; and
• Be ineligible for compensation from their employer, private insurer or other federal support programs.

In addition, the Saskatchewan Government has announced a variety of other supports for Saskatchewan businesses, including:

• Deferring for 3 months, the remittances of provincial sales tax and any penalties or charges associated with provincial sales tax remittances for businesses facing cash flow concerns due to COVID-19 ;
• Suspending audit and compliance activities associated with provincial sales tax remittances for 3 months;
• Allowing businesses unable to file provincial tax returns by the due date to submit an application for relief from penalty and interest charges associated with late filings; and
• Implementing zero-interest bill deferral programs for up to 6 months for all Crown utilities.

Ontario

The Ontario Government has established a $17 Billion support package in connection with COVID-19. The package includes the following support for employers, employees and workers:

• Tax cuts of $355M for 57,000 employers by temporarily increasing the Employer Health Tax Exemption from $490,000 in payroll to $1M;
• Reducing electricity bills for eligible farm and small business consumers by charging off-peak electricity pricing;
• Expanding access to the emergency assistance program administered by Ontario Works;
• Introducing a 10%, refundable Corporate Income Tax Credit—the Regional Opportunities Investment Tax Credit—to support regions lagging in employment growth. This Tax Credit is available for Canadian-controlled private corporations that make qualifying investments between $50,000 and $500,000 in specified regions.;
• From April 1, 2020 to August 31, 2020, interest and penalties will not apply to Ontario businesses that miss filing or remittance deadlines for:
• Employer Health Tax
• Tobacco Tax
• Fuel Tax
• Gas Tax
• Beer, Wine and Spirits Taxes
• Mining Tax
• Insurance Premium Tax
• International Fuel Tax Agreement
• Retail Sales Tax on Insurance Contracts and Benefits Plans
• Race Tracks Tax
• Providing $1.9B to the Workplace Safety and Insurance Board to allow employers to defer payments for up to six months.

Further information on the various programs can be found in the Ontario Provincial Government’s Annex: Details of Tax Measures.

The Ontario Government has also introduced the Ontario Together portal to welcome help from “businesses and organizations who supply emergency products and innovative solutions” to support Ontario’s response to COVID-19.

Québec

Québec has introduced the Temporary Aid for Workers Program to provide temporary financial aid for workers during the COVID-19 pandemic. The Temporary Aid for Workers Program provides $573 per week for the two-week isolation period. This can be extended to a maximum of 28 days if justified.

Subject to the conditions outlined below, all workers, 18 year or over, who reside in Québec are entitled to the Temporary Aid for Workers Program if they are in isolation and have:

• Contracted COVID-19;
• Been in contact with a person infected with COVID-19; or
• Returned from abroad.

To be eligible workers must not be receiving compensation from their employer, not have private insurance and must not be covered by another government program such as Employment Insurance. Lastly, the order to self-isolate must have been given by the Government of Canada, the Government of Québec or another responsible authority.

Employees were able to apply to the program starting on March 19, 2020.

The Québec Government has also announced the Concerted Temporary Action Program for Businesses through Invest Québec. This program provides financial support of at least a $50,000 loan and loan guarantee to make up for cash flow shortages related to COVID-19 that are due to:

• A supply problem for raw materials or products; or
• An inability, or a substantially decreased ability, to deliver goods, products or services.

Finally, for businesses, the Revenu Québec has suspended the payment of tax installments and taxes due as of March 17, 2020 until July 31, 2020. For individuals, the deadline for filing income tax returns has been postponed until June 1, 2020 and the tax installments due on June 15, 2020 are suspended until July 31, 2020.

Nova Scotia

The Nova Scotia Government has announced financial benefits to help vulnerable businesses, including:

• Deferring Government loans payments and small business renewal fees, including workers compensation premiums, until June 30, 2020;
• Changing the Small Business Loan Guarantee Program to defer principal and interests payments until June 30;
• Making it easier for small businesses to access credit up to $500,000, including the government guaranteeing the first $100,000 for those who may not qualify for a loan;  
• Paying small businesses that do business with the Provincial Government in 5 days as opposed to 30 days; and
• Providing a $15M incentive to internet providers to speed up projects under the Internet for Nova Scotia Initiative to allow more employees to work from home.

New Brunswick

The province has implemented a program to provide a one-time benefit in order to bridge the time gap between now and when individuals will be able to receive federal benefits. Workers and self-employed individuals in New Brunswick who have lost their jobs due to the province’s state of emergency over COVID-19 will receive a one-time $900 benefit.

No exact date has been set for the beginning of this benefit, however the Premier has stated that he is aiming for it to start on Friday March 27th or Monday March 30th at the latest.

In addition, the Government of New Brunswick has provided relief for businesses, including:

• Waiving the late penalties on property taxes, on a case-by-case basis, if businesses cannot pay due to undue financial challenges such as having to close business due to COVID-19;
• Deferring, on a case-by-case basis, loan and interest repayments for 6 months on existing provincial loans;
• Providing working capital to support small businesses respond to challenges associated with COVID-19, through loans up to $200,000; and
• Providing working capital in excess of $200,000 through Opportunities New Brunswick, for mid-to-large employers.

Prince Edward Island

The Prince Edward Island Government has introduced a $25M Emergency Relief – Worker Assistance Program and Income Support for the Self Employed. The fund will provide $250 per week to workers of registered private sector businesses who have their hours reduced due to COVID-19 by at least 8 hours a week between March 16 and March 29, 2020. Workers who have been laid off during this period are not eligible for this support. Eligible self-employed individuals will receive up $500 per week for March 16 to March 29, 2020, however they must not be EI-eligible or receiving any other income support, including from insurance.

Additionally, the Prince Edward Island Government is working with Sobeys grocery store to provide $100 gift cards. In order to qualify, the individual must:

• Live and work in P.E.I.;
• Earn $25 per hour or less; and
• Have lost their job as a result of a layoff in connection with COVID-19 between the dates of March 13 and March 31, 2020.

The Prince Edward Island Government has also announced a variety of other supports for businesses, including:

• A broadband fund to provide financial assistance of up to 50% of the eligible costs of an approved project for eligible businesses that require new or upgraded internet services to their premises; and
• Emergency loans of up to a $100,000, with at least the first 12 months of principal and interest payments deferred, to assist small businesses with fixed operating costs.

Other Provinces

Newfoundland has announced that they will compensate employees to ensure that they will not go without pay during the pandemic but no specific programs have been announced.

Manitoba has not announced any financial relief for businesses or employers to date.