Canada’s COVID 19 Economic Response Plan
Key Points for Businesses:
- The federal government is allowing all businesses to 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 instalments, under Part I of the Income Tax Act.No interest or penalties will accumulate on these amounts during this period.
- The federal government has launched an Insured Mortgage Purchase Program, in which we will purchase up to $50 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.
- The federal government 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 in to the economy.
- The federal government has established a Business Credit Availability Program (BCAP) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses, through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).BDC and EDC are cooperating with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation and tourism.As a first step, businesses in need of credit support should contact their financial institution.Learn more about the Business Credit Availability Program
- Extending the Work-Sharing program
The federal government is extending the maximum duration of the Work-Sharing program 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.
- Providing small business with wage subsidies
The federal government is providing eligible small employers a temporary wage subsidy for a period of three months.
The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration.
*NEW* March 25, 2020: Government introduces Canada Emergency Response Benefit to help workers and businesses
BC’s COVID 19 Action Plan
Key Points for Businesses:
- Effective immediately, businesses with a payroll over $500,000 can defer their employer health tax payments until Sept. 30, 2020. Businesses with a payroll under this threshold are already exempt from the tax.
- The Province is extending tax filing and payment deadlines for the provincial sales tax (PST), municipal and regional district tax on short-term accommodation, tobacco tax, motor fuel tax and carbon tax until Sept. 30, 2020.
- Business and light- and major-industry property classes will see their school tax cut in half. This will provide $500 million in immediate relief for business that own their property and allow commercial landlords to immediately pass savings on to their tenants in triple-net leases.
- In the longer term, the recovery plan will dedicate funding to particularly hard-hit parts of the economy, such as the tourism, hospitality and culture sectors. The B.C. government is partnering with business and labour leaders to build an economic stimulus plan. The Province has allocated $1.5 billion for economic recovery.
COVID 19 Guidance and Resources for Whistler Businesses (From the Whistler Chamber of Commerce)
- General: Getting your workplace ready; Best Practices Guide
- Financials: COVID-19 Economic Response Plan summary (Canadian Chamber of Commerce)
Canada’s measures to support the economy and the financial sector (Government of Canada)
Support for Entrepreneurs impacted by coronavirus (Business Development Canada)
Pandemic preparedness resources for business (Canadian Chamber of Commerce)
Continuity plan toolkit (Business Development Canada)
Temporary Wage Subsidy for Employers (Government of Canada)
*NEW* The new Canada Emergency Response Benefit (Government of Canada)
- HR:Government of Canada takes action on COVID-19 (Government of Canada)
Changes to Employment Insurance (Employment and Social Development Canada)
Keeping your employees safe (Canadian Federation of Independent Business)
Work Sharing Brochure for Employers (Service Canada)
HR advice: Responding to COVID-19 in the Workplace (go2HR)
What Employers Need to Know About Temporary Layoffs (Small Business BC)For Employees:
*NEW* Changes to Employment Insurance (Employment and Social Development Canada)
Applying for Employment Insurance (EI) (Service Canada)
EI – Applying for Sickness (Service Canada)
Service Canada: Community Outreach and Liaison Services information
Working Holiday Visa – MSP Eligibility
Support for Entrepreneurs impacted by coronavirus (BDC)
Also from the Whistler Chamber: Video COVID 19 Business Support – Ep #1 – HR Resources and Employment Law
Video From the Greater Vancouver Board of Trade: Finance and Cash Flow Management