The Work-Sharing program will be extended from 38 weeks to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers. Learn more at this link.
The new Canada Emergency Wage Subsidy will cover 75 percent of salaries for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. Employers of all sizes and across all sectors of the economy would be eligible except for public sector entities.
This program is designed to help employers hardest hit by the COVID-19 pandemic to keep and retain workers.
Organizations that do not qualify for the Canada Emergency Wage Subsidy may qualify for the previously announced wage subsidy of 10 percent of remuneration paid from March 18 to before June 20, 2020.
Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details on how to apply will follow soon. Learn more at this link.
The Canadian 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).
BDC and EDC are working with private-sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports, and tourism.
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.
These programs will roll out in the three weeks after March 27, and interested businesses should work with their current financial institutions. Learn more at this link. https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html
The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profit companies, to help cover their operating costs during a period where their revenues have been temporarily reduced. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.
This program will roll out in the three weeks after March 27, and interested businesses should work with their current financial institutions.
The Insured Mortgage Purchase Program, in which the Government 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. Learn more at this link.
The Bank of Canada is acting in several ways to support the economy and financial system and stands ready to take 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.
Lowering the Domestic Stability Buffer:
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 into the economy.
All businesses may 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 installments, under Part I of the Income Tax Act.
No interest or penalties will accumulate on these amounts during this period. Learn more at this link.
The Government will allow businesses, including self-employed individuals, to defer until June 30, 2020 payments of the Goods and Services Tax / Harmonized Sales Tax (GST/HST), as well as customs duties owing on their imports.
The deferral will apply to GST/HST remittances for the February, March and April 2020 reporting periods for monthly filers; January 1, 2020, through March 31, 2020 reporting period for quarterly filers; and for annual filers, the amounts collected and owing for their previous fiscal year and installments of GST/HST in respect of the filer’s current fiscal year.
For GST and customs duty payments for imported goods, the deferral will include amounts owing for March, April, and May.
These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of this month.
COVID-19 changes our society and economy. More people are moving home to work these days. How can managers and supervisors ensure the health and safety policies and procedures are under control? There are so many things to be modified because you will not be able to watch and talk with your co-workers in person.
There are three important things to be considered
It is not simply that an employee can work at a kitchen table or cafeteria, you should make a checklist to ensure the working condition fits for working at home, such as an ergonomic table and chair, stable and fast internet access, a quiet place for working. The employees should have a check-list of health and safety in the new working environment as they work in facilities, regardless they may use the company’s vehicle, equipment, tools or not, they should check the list every day, filing and reporting to their supervisor.
Risks include cybersecurity when employees access the company’s hub, server or database, or potential risk of fire or gas leak in (the employees’) house, transportation, or community safety. The company should have a dedicated IT technician to watch carefully for any cyberattacks and provide assistance to the less tech-savvy workers. Employees should also watch out for other risks through maintaining constant and effective communication with co-workers and supervisors
Supervisors and managers must understand that constantly checking their employees' work progress may not lead to high productivity. By building a self-managing culture based on trust and respect, will be much more effective in keeping remote workers' efficiency high.