COVID-19: Daily round up for Federal, Ontario & BC updates | March 31, 2020
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Below are the key announcements for the Federal, Ontario and BC governments that touch on workplace issues for March 31, 2020:
The Federal Government
Update on the Canada Emergency Wage Subsidy Program
Last week the Federal Government announced it would provide a 75% wage subsidy through a program now known as the Canada Emergency Wage Subsidy (“CEWS”).
On March 30, 2020 the Prime Minister announced the fourth version of the wage support program, sharing the following details for the CEWS:
- Businesses whose revenues have decreased by at least 30% because of COVID-19 will be eligible for the wage subsidy.
- All businesses whether “big or small” that meet this requirement, including non-profits and charities, qualify for the wage subsidy regardless of their number of employees. (Previously, the only business corporations eligible were Canadian-controlled private corporations that qualify for the small business deduction.)
- For qualifying businesses, the Federal Government will pay up to 75% of each employee’s wages on the first $58,700. The maximum wage subsidy is $847 per week per employee.
- The wage subsidy will be backdated to March 15, 2020.
On Monday, the Prime Minister said Finance Minister Bill Morneau and Small Business Minister Mary Ng would provide more details of the subsidy program during a briefing on Tuesday, March 31, 2020.
However, the briefing has been postponed until Wednesday, and until it is held, the following questions are still to be answered:
How will the 30% revenue decrease be measured? What evidence will be required to show the decrease was in fact caused by COVID-19?
At the moment there are no details on how the government plans to determine whether a business has suffered a 30% revenue decrease or what evidence will be required to prove this.
Can the CEWS subsidy be the only wages employees receive?
The Prime Minister urged businesses receiving the CEWS subsidy to pay the remaining 25% of wages to each employee, but he did not say this was mandatory.
This could suggest that qualifying businesses might rely exclusively on the wage subsidy to pay their employees.
Is the CEWS subsidy taxable?
It’s unclear if the CEWS subsidy is gross or net of applicable tax withholdings. Many assume it will be taxed as income from employment.
Is the CEWS subsidy only available for employees who are working?
It's unclear how the CEWS will work with the Canada Emergency Response Benefit (“CERB”). Based on the limited information available at the moment, the CERB is intended to provide income protection for Canadians who cease working as a result of COVID-19.
This suggests the CEWS will only be available to subsidize the wages of employees who are actually working and are not laid off.
Does the CEWS replace the 10% Temporary Wage Subsidy for Employers?
On March 18, 2020 Prime Minister Trudeau announced the Temporary Wage Subsidy for Employers, a three-month measure that allows eligible employers to reduce their payroll deductions by 10% up to $1,375 per employee to a maximum of $25,000.
This subsidy remains on the Canada Revenue Agency’s website but is not mentioned on the Government of Canada’s COVID-19 Economic Response Plan website so it’s unclear if the CEWS will replace this program.
The CEWS is said to be available in the next few weeks. Answers to these questions will hopefully be available on Wednesday, April 1, 2020.
Ontario
Ontario Government Extends Emergency Declaration to April 13, 2020
On March 30, 2020, the government extended the provincial state of emergency, which was set to expire on March 31, 2020, for an additional 14 days.
This extension of emergency measures includes the extension of all associated emergency orders under the Emergency Management and Civil Protection Act, including the closure of non-essential workplaces, until April 13, 2020.
For a full list of orders that have been extended until April 13, 2020, click here.
British Columbia
BC Government Extends State of Emergency until April 14, 2020
On March 31, the BC government formally extended the provincial state of emergency through the end of the day on April 14.
BC Premier John Horgan states the importance of the following weeks by encouraging British Columbians to follow the rules and help minimize the spread of the COVID-19 virus.
BC will be unveiling details on Wednesday of a new partnership between government, business and the provinces tech sector.
See this news release for more information.
Sarah Visca is the Operations Manager at ConnectsUs HR, a company that provides tools & resources to quickly set up a Human Resources department.
You can contact her here.
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