Apr 9, 2020
I know I don’t usually do two podcasts in one week, but these are special times, folks.
Many of us in the Self-Made Nation are trying to navigate through this difficult economic slowdown due to COVID-19.
You probably have questions about what’s available to you from a business subsidy standpoint via the Canadian government. And I went to one of the best to bring you some answers!
This week’s “I'm a Millionaire. So Now What?” special guest is Anjali Dilawri, Partner at Ottawa-based public accounting firm Logan Katz.
She’s going to help us unbundle and digest the government programs in Canada that have been created to support us as business owners to support entrepreneurs and founders.
We slice and dice:
🇨🇦 The Canada Emergency Wage Subsidy
🇨🇦 A smaller (10%) temporary wage subsidy as well
🇨🇦 Canada Emergency Response Benefit (CERB)
🇨🇦 And a number of other credit availability/ loan guarantee programs
This is a cracking episode, loaded up with valuable information! I hope it will help relieve some of the stress many business owners and entrepreneurs are struggling with right now.
Details on how and when to apply to the various benefits are coming soon, so the first thing you should do (if you haven’t already) is set up your CRA “My Account” set it up, and double check that all your information is up to date – including your direct deposit information.
Let’s take a look at the largest program - actually the largest economic program in Canadian history - the Canada emergency wage subsidy. This program is estimated to cost $71 billion and essentially the government is going to fund your employees’ wages.
In a nutshell, it's available to eligible employers which includes taxable corporations, individuals, partnerships, not for profits, and charities. The government will pay these eligible employers 75% of their employees’ remuneration - up to a maximum of 58,700, which works out to about $847 a week. So, the big number to remember is 75% of your employees’ wages could qualify.
There is one caveat though - you have to have a reduction in your revenue and your gross revenue month over month as compared to last year.
So, for example, you look at your month of March this year and your month of March last year, and if you can demonstrate that your revenues have reduced by 30% at least, then you are eligible for this program (given that you meet the other requirements), but that's the BIGGEST decider of eligibility.
Also, it's available for three months - March, April and May - so you can qualify for one month and not qualify for the other, but you shouldn't be reapplying every month if you qualify initially.
BUT: this is not a free lunch. It is taxable. So, any subsidy that you do qualify for and receive under this program is taxable income to you.
This episode is absolutely required listening for everyone trying to navigate these choppy business waters at the moment. Hope you enjoy!
Listen to I'm A Millionaire! So Now What? In Podcasts. https://itunes.apple.com/ca/podcast/im-a-millionaire-so-now-what/id1432211995?mt=2