Alright ladies, there is a ton of information floating around, some is beneficial some is not, but we will continuously be updating this post as more information comes to surface, so you can find information as easy as possible. If you think we are missing some valuable information in this post please e-mail us at bossladiesassociation@gmail.com with it and we will try and get it added as soon as possible.
Before we start digging into the numbers, the facts and the resources, I do want to acknowledge that there may not be an option or answer for everyone. I am thankful that we live in a country that is providing for it’s citizens and businesses (even if some think they are not doing enough), because I do know there are many countries right now that are getting nothing. Sometimes we need to keep that in perspective even if this situation is beyond shitty…
Alright, now let’s get to it…
Do you need moolah?
Will update this section on the government backed loan soon.
If you don’t ask, you won’t know
You may assume that the bank will say no, or your landlord will so no, or whoever, but if you don’t ask, you won’t know. Everyone isn’t going to say yes, but everyone won’t necessarily say no either. If you have been pushed to close business or seen a drop in revenue so you can’t pay your bills start going through your list of expenses and see who will be willing to defer payments.
Many banks currently have put a COVID 19 action plan into effect which means they are giving people and businesses options to defer payments, offer loans, etc. A big one is that many are giving mortgage holders the ability to defer payments, which means your landlord may be in a position where they will be able to defer a payment. Remember, deferring a payment doesn’t mean you never pay it, and it may mean added interest down the road (so don’t do it unless you really need to), but it could be an option to help you keep afloat right now.
Do you have an online CRA account?
I know some people like to keep it old school and stick to the paper and pen, or the calling in option for CRA capabilities, but if there was ever a time to get set up online, now is the time. During the coming months there may be more opportunities, grants, funding, etc., available through the CRA and the fasted and most efficient way is going to be through their online platform.
Click Here to create your account for both personal and business
While you’re at it, I would also recommend registering for direct deposit for anything CRA related so that you receive your monies in a timely manner. Click here for details on that.
Should I lay off my staff?
As the business owner, you are the only one who can answer this question. Below I have outlined the new Canada Emergency Wage Subsidy, if this subsidy is something you cannot take advantage of and you are in a position that your revenue can not keep up with employee wages, then it is probably time. I know even thinking about this option is hard (and it probably keeps you up at night, it sure keeps me up, I miss my staff) but you do need to do what is best for your business so that you can ensure that you can open your doors back up for business after all this is over. You staff will be covered by the CERB (Canada Emergency Response Benefit) which means they will be covered by EI (55% of their wage) which will then transition into this new benefit which offers $2,000 per month.
ROE’s for your staff
When filling ROE’s for your staff please keep the below in mind:
- Use Code A — Shortage of Work / End of Contract or Season if:
- You’ve closed your business or adjusted your workforce as a precaution.
- Use Code D — Illness/Injury for:
- Actual illness or an employee who has tested positive.
- An employee who has traveled and is now self-isolating.
- Use Code N — Leave of Absence if:
- The employee is showing no symptoms but is making a personal choice to distance themselves just to be safe.
- BOX 18 — Do not put a note in this field. This “flags” the ROE in the system and may slow processing.
- People who apply to EI because of COVID-19 will be automatically switched over to the CERB once it is in place.
- Use Code A — Shortage of Work / End of Contract or Season if:
Canada Emergency Wage Subsidy
Click Here for the Government Website on this Topic
This wage subsidy is meant for businesses with employees who’s revenue has dropped by at least 30% (compared to last year at the same time, hopefully they will release more information regarding newer businesses, but at this time it seems like it’s for older businesses). If your business does not qualify for the wage subsidy you could still qualify for the 10% wage subsidy by reducing your payroll remittances by 10% of remuneration of your employees.
The wage subsidy will cover 75% of the first $58,700 earned by employees between March 15, 2020 and June 6, 2020. The employee does NOT need to actually be working, this is meant to be a alternative to the CERB or EI for employees. The government is encouraging businesses to re-hire staff and put them on this program (if they qualify), as a business owner you do not need to top up the last 25% – but if you are expecting employees to work while on this program, then they probably should be. If an employee’s salary is more than $35,000, it’s expected that the Wage Subsidy will be more advantageous than the CERB. Employee DON’T claim with CERB and the 75% wage subsidy (it’s one or the other).
The CRA will administer this program. Applications will be made on the CRA website directly and payment will be received after about 6 weeks (give or take). There isn’t a rush or mad panic to apply for this program, it can be back dated. The initial criteria for eligible indicates that business owners need to prove a 30% decrease in revenue March, April and/or May (compared to the same month in the prior year). A new application would need to be made for every month.
I’m a business owner/solo-preneur, what do I apply for?
Click Here for a Handy Graph on the CERB
The government has made the CERB (Canada Emergency Response Benefit) available for everyone – even those of us that don’t usually qualify for EI. But, in order to qualify for this, you cannot have any income coming in. This means you are going to have to decide whether your business is more benefitted to stay operating and continue coasting by in the current situation, or completely shut down business in order to qualify for this benefit. You can learn more about this benefit directly from the government site here.
Who is eligible?
- You must reside in Canada.
- You are 15 years of age or older at the time of application.
- You have stopped or will stop working for reasons related to covid-19, or because you are unable to work due to illness, or because you lost your employment for other reasons beyond your control.
- You have earned a minimum of $5,000 in employment income in 2019.
I know there is a lot of misinformation about everyone needing to apply right on April 6th. You need to follow the chart below to apply. Your application being done on Thursday vs Monday is not going to have any different effect for when you start receiving payment. Your application can all be done online (which is why I suggested you to set up your CRA account above), so no need to sit on hold. I do still expect the website to be a bit laggy, there are going to be a lot of people applying for this benefit. Please remember to remain calm, understanding and kind during this situation.
Click Here for Some Valuable and Handy Information Provided By One of Our Members
