Mesures – COVID-19
Here are various measures that have been announced since March 13, 2020 by the different levels of government and some financial stakeholders.
This summary is current as of June 26, 2020.
The tables and summaries below were prepared based on the information available on the websites and in the documents that the various stakeholders have made available. Some of the information available is preliminary. The tables and summaries are for information purposes only, they do note replace the Law. In addition, they are not intended to provide financial, tax, legal, accounting or other advice. This information cannot, under any circumstances, be used as proof for the purposes of claiming any particular amounts.
For further details on the measures outlined below, you can consult the websites of the various stakeholders. You can also contact the person in charge of your file.
Individuals – excluding self-employed workers
| Taxes | Deadline | New deadline Federal |
New deadline Quebec |
| Filing of 2019 income tax returns (T1-TP1) | April 30, 2020 | June 1, 2020 In the event that the tax balance is paid no later than August 31, 2020, no penalty and interest will be applied |
June 1, 2020 In the event that the tax return is filed no later than September 1, 2020, no penalty will be applied |
| Payment of 2019 taxes | April 30, 2020 | September 1, 2020 | September 1, 2020 |
| Payment of QPP, QPIP, FSS and RAMQ contributions (included in the TP-1) |
April 30, 2020 | September 1, 2020 | September 1, 2020 |
| Tax instalment payment due on March 15, 2020 | March 15, 2020 | No change | No change |
| Tax instalment payment due on June 15, 2020 | June 15, 2020 | September 1, 2020 | September 1, 2020 |
| Support for workers – Federal | |
| Canada Emergency Response Benefit (CERB) | |
| Eligibility |
To be eligible for this benefit, you must be at least 15 years of age and have earned, in 2019 or in the 12-month period prior to the date of the application, income of at least $5,000 from:
Important: Shareholders employed by the company are not excluded, regardless of the percentage of shares they hold. |
| Conditions |
The following conditions must be met:
Taxpayers who earn $1,000 or less while they have stopped working, as an employee or a self-employed person, will not lose their eligibility to CERB. Important: Workers who voluntarily leave their job are not considered to have stopped working. |
| April 15, 2020 Announcement |
Expansion of eligible persons:
These changes will be retroactive to March 15, 2020. |
| Amount and terms |
For the period from March 15 to October 3, 2020, the amount of the benefit will be $ 500 per week, for a maximum period of 16 weeks. It was announced on June 16, 2020 that the CERB will be extended by 8 weeks, bringing the number of weeks to 24. It will be paid within 10 days of the application. The benefit is taxable. |
| Application |
The Canada Emergency Response Benefit is available through a secure web portal. You can also apply through an automated phone line or a toll-free number. |
| Reimbursement |
If you need to return or repay the CERB If you have been paid by direct deposit or don’t have the original CERB cheque, you can repay the CERB online using CRA My Account, by online banking or cheque. If you repay by cheque, you have to :
Mail your payment to: |
| Recovery |
Any false statement could result in the government recovering the benefit. |
| Additional information |
If you are already receiving EI regular or sickness benefits, do not have to apply for the since they will continue to receive their benefits until maturity. If you are receiving EI benefits that end before October 3, 2020, you can apply for the CERB once your benefits run out if you are unable to return to work because of COVID-19. |
| Useful link – Q&A |
https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html |
| Canada emergency student benefits (CESB) | |
| Eligible Students |
Must be:
|
| Requirements |
The student :
|
| Attestation |
A student who applies on the basis that they are seeking work, whether as an employee or in self-employment, but are unable to find it must, in their application, attest to the fact that they are seeking work. |
| Amount and Terms |
The amount would be of $1,250 per month or $2,000 per month for an eligible student whit dependants or has a permanent disability. The CESB amount would be available from May to August, 2020. CESB is taxable. Applications for CESB must be submitted before September 30, 3030, by phone or online using CRA My Account. |
| Reimbursement |
If you have to repay CESB If you were paid by direct deposit or don’t have the original CESB cheque, you can repay the CESB online using CRA My Account, by online banking or by cheque. If you still have the original CESB cheque, you can return the cheque by mail at the following address. If you repay by cheque, you have to :
Revenue Processing – Repayment of CESB |
| Other Point |
Students seeking employment can register with the Government of Canada Job Bank at the following link: |
| Recovery as Debt Due to Her Majesty |
Any false statement could lead to recovery as debt due to the government. |
| Useful link | |
| Canada Student Service Grant (CSSG) | |
|
The government launch the Canadian Student Service Grant on June 25, 2020. This award offers up to $5,000. More information is available on the “I want to help platform” at: https://www.jobbank.gc.ca/volunteer |
|
| Work-sharing | |
|
Benefits for workers who agree to reduce their normal working hours because of developments beyond the control of their employers, extending the eligibility period for work-sharing agreements to 76 weeks. |
|
| EI sickness benefits | |
|
Elimination of the one-week waiting period for new recipients who have contracted COVID-19 and are placed in quarantine, so that they are paid for that week. Introduction of a new toll-free number for requests for information: 1-833-381-2725. Priority processing of applications for EI sickness benefits from clients under quarantine. No medical certificate is required for applicants under quarantine. |
|
| Support for workers – Quebec | |
| Incentive Program to Retain Essential Workers (IPREW) | |
| Eligibility |
To be eligible for this program, you must:
|
| Financial support |
Retroactive to March 15, 2020 $100 per week for 16 weeks Taxable |
| Details |
You can apply through a Revenu Québec online form beginning May 19, 2020. Payments will be issued starting on May 27, 2020. |
| Insurance – individuals | |
| Insurers’ stand on disability claims related to COVID-19 |
Short-term disability plans will only cover disabled persons and individuals with a confirmed diagnosis of COVID-19. The quarantine period will be covered by EI. |
| Financial support | |
| Bank of Canada |
The Bank of Canada has reduced its key interest rate to 0.25% bps to stimulate the economy currently affected by the COVID-19 crisis. |
| Financial institutions |
The major chartered banks and Desjardins have undertaken to work with their clients to provide them with tailored solutions that allow them to manage the difficulties arising from the current situation, such as pay disruptions, child care due to school closures, and contracting COVID-19. This support includes up to six months of loan deferral, and the opportunity to postpone payments on other credit products. If you are facing difficulties, you are asked to contact your bank directly to discuss possible solutions. |
Individuals – Self-employed workers
| Taxes and other | Deadline | New deadline Federal |
New deadline Quebec |
| Filing of income tax returns for individuals who operated a business (and their spouse) (T1-TP1) | June 15, 2020 | June 15, 2020 In the event that the tax balance is paid no later than August 31, 2020, no penalty and interest will be applied |
June 15, 2020 In the event that the tax return is filed no later than September 1, 2020, no penalty will be applied |
| Payment of 2019 taxes | April 30, 2020 | September 1, 2020 | September 1, 2020 |
| Payment of QPP, QPIP, FSS and RAMQ contributions (included in the TP-1) | April 30, 2020 | September 1, 2020 | September 1, 2020 |
| Tax instalment payment due on March 15, 2020 | March 15, 2020 | No change | No change |
| Tax instalment payment due on June 15, 2020 | June 15, 2020 | September 1, 2020 | September 1, 2020 |
| Filing of income tax returns (GST/HST/QST) | Monthly, Quarterly or Annually |
Tax returns must still be filed on the usual dates. However, no late-filing penalty will be charged if returns due March 31, April 30 and June 1, 2020 are filed no later than June 30, 2020 | Tax returns must still be filed on the usual dates. However, no late-filing penalty will be charged if returns due March 31, April 30 and June 1, 2020 are filed no later than June 30, 2020 |
| Payment of taxes | Monthly, Quarterly or Annually |
Amounts due on March 31, April 30 and May 31, 2020 can be paid on June 30, 2020 | Amounts due on March 31, April 30 and May 31, 2020 can be paid on June 30, 2020 |
| Payment of Registration Fees (REQ) | From January 1 to June 15 | Not applicable | For annual reports to be filed between March 13 and August 31, 2020, payments may be made on September 1, 2020 |
| Filing and payment – Tax on lodging | First quarter of 2020 – April 30, 2020 | Not applicable | July 31, 2020 |
| Payment of source deductions | Weekly Semi-monthly Monthly Quarterly Annually |
Source deductions must still be paid on the usual dates | Source deductions must still be paid on the usual dates |
| Filing reports with the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) | March 14, 2020 | Not applicable | June 1, 2020 |
| Paying the CNESST statement of account | Deadline appearing on the statement | Not applicable | August 31, 2020 |
| Support for self-employed workers – Federal | |
| Canada Emergency Response Benefit (CERB) | |
| Eligibility |
To be eligible for this benefit, you must be at least 15 years of age and have earned, in 2019 or in the 12-month period prior to the date of the application, income of at least $5,000 from:
Important: Shareholders employed by the company are not excluded, regardless of the percentage of shares they hold. |
| Conditions |
The following conditions must be met:
Important: Workers who voluntarily leave their job are not considered to have stopped working. |
| April 15, 2020 Announcement |
Expansion of eligible persons:
Taxpayers who earn $1,000 or less while they have stopped working, as an employee or a self-employed person, will not lose their eligibility to CERB. These changes will be retroactive to March 15, 2020. |
| Amount and terms |
For the period from March 15 to October 3, 2020, the amount of the benefit will be $ 500 per week, for a maximum period of 16 weeks. It was announced on June 16, 2020 that the CERB will be extended by 8 weeks, bringing the number of weeks to 24. It will be paid within 10 days of the application. The benefit is taxable. |
| Application |
The Canada Emergency Response Benefit is available through a secure web portal. You can also apply through an automated phone line or a toll-free number. |
| Reimbursement |
If you need to return or repay the CERB. If you have been paid by direct deposit or don’t have the original CERB cheque, you can repay the CERB online using CRA My Account, by online banking or cheque. If you repay by cheque, you have to :
Mail your payment to: |
| Recovery |
Any false statement could result in the government recovering the benefit. |
| Additional information |
If you are already receiving EI regular or sickness benefits, do not have to apply for the since they will continue to receive their benefits until maturity. If you are receiving EI benefits that end before October 3, 2020, you can apply for the CERB once your benefits run out if you are unable to return to work because of COVID-19. |
| Useful link – Q&A |
https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html |
| Canada emergency student benefits (CESB) | |
| Eligible Students |
Must be:
|
| Requirements |
The student :
|
| Attestation |
A student who applies on the basis that they are seeking work, whether as an employee or in self-employment, but are unable to find it must, in their application, attest to the fact that they are seeking work. |
| Amount and Terms |
The amount would be of $1,250 per month or $2,000 per month for an eligible student whit dependants or has a permanent disability. The CESB amount would be available from May to August, 2020. CESB is taxable. Applications for CESB must be submitted before September 30, 3030, by phone or online using CRA My Account. |
| Reimbursement |
If you have to repay CESB If you were paid by direct deposit or don’t have the original CESB cheque, you can repay the CESB online using CRA My Account, by online banking or by cheque. If you still have the original CESB cheque, you can return the cheque by mail at the following address. If you repay by cheque, you have to :
Revenue Processing – Repayment of CESB |
| Other Point |
Students seeking employment can register with the Government of Canada Job Bank at the following link: |
| Recovery as Debt Due to Her Majesty |
Any false statement could lead to recovery as debt due to the government. |
| Useful link | |
| Support for businesses | |
| Temporary Wage Subsidy for Employers |
The federal government is offering certain employers a temporary wage subsidy for three months. The subsidy is equal to 10% of the remuneration paid during this period, up to $1,375 for each employee to a maximum of $25,000 per employer. Employers will be able to benefit immediately from this support measure by reducing the amount of income tax withheld from their employees’ remuneration. For further details, click HERE. |
| Canada Emergency Wage Subsidy |
The federal government is offering all employers a temporary wage subsidy for the period from March 16 to June 5, 2020. However, it has been announced that the SSUC will be extended until August 29, 2020. To this effect, relatively small adjustments terms and conditions could be made. This subsidy is equal to 75% of the remuneration paid for the period, up to a maximum of $847 per employee per week. In contrast with the temporary wage subsidy, there is no limit per employer. Employers must apply to the Canada Revenue Agency. For further details, click HERE. |
| Refund for a portion of payroll taxes |
Employers who qualify for the CEWS are entitled to a 100% refund for employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan and the Quebec Parental Insurance Plan. This refund covers 100% of employer-paid contributions for eligible employees for each week during which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. In general, an employee is considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund is not available for eligible employees who are on leave with pay for only a portion of a week. Employers must continue to collect and remit employer and employee contributions to each program as usual. They must apply for the refund through their CEWS application. There is no limit to the amount that can be claimed. |
| Reimbursement of a Portion of the Health Services Fund Contribution |
Employers that are eligible to CEWS may be entitled to the total reimbursement of their employer contribution to the Health Services Fund for certain employees. The reimbursement period covers the period for which the employer is eligible for SUCC, that is, until August 29, 2020. This refund covers 100% of employer-paid contributions for eligible employees for each week during which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. In general, an employee is considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund is not available for eligible employees who are on leave with pay for only a portion of a week. Employers can either make a request when submitting their 2020 Summary of Source Deductions and Employer Contributions Summary or reduce their periodic payments. The amount of any government assistance, non-government assistance or any profit or benefit attributable to an expense that is eligible to the reimbursement of Health Services Fund contributions must be subtracted. However, an amount received or receivable as a refundable tax credit for SMEs to foster the retention of experienced workers or a refundable tax credit for SMEs for persons with a severely limited capacity for employment are not a government assistance for the purposes of the credit on employers contribution to the Health Services Fund. There is no limit to the amount that can be claimed. |
| Reduction of part of the contribution to the CNESST |
Employers who benefit from the CEWS do not have to pay an insurance premium to the CNESST, both on the amount of the subsidy and on the additional amount they could pay during this period, for the weeks when workers don’t work. Consequently, no periodic payment must be made on these amounts and the necessary adjustments will be possible when the 2020 Statement of Wages is produced. On the other hand, for the weeks in which workers provide work, even part-time, employers must declare the entire subsidy and the additional amount that they could pay to their workers in calculating the periodic payments. |
| Financial support | |
| Canada Emergency Business Account |
This program provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000). For further details, click HERE |
| Canada Emergency Commercial Rent Assistance (CECRA) |
Implementation of the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June. For further details, click HERE |
| Regional relief and recovery fund (RRRF) |
Businesses and non-profit organizations that are not eligible for other federal programs may have access to funding through the RRRF. For more details, you can consult the following website: |
| Bank of Canada |
The Bank of Canada has reduced its key interest rate to 0.25% bps to stimulate the economy currently affected by the COVID-19 crisis. |
| Financial institutions |
The major chartered banks and Desjardins have undertaken to work with their clients to provide them with tailored solutions that allow them to manage the difficulties arising from the current situation, such as child care due to school closures, and contracting COVID-19. This support includes up to six months of mortgage deferral and the opportunity to postpone payments on other credit products. If you are facing difficulties, you are asked to contact your bank directly to discuss possible solutions. |
| A few recommendations to preserve your cash flow |
Revise your cash budget based on a lower income between now and July 2020. That way you can assess the impact on your cash flow (liquidity) to better predict your financial needs in the coming months. Use an employee who is well-versed in collection and put them to work collecting your accounts receivable. Ask for deposits from your customers, if possible. Make credit less available to your customers and assess their ability to get through this crisis before delivering the merchandise. Cut down on your expenses as much as possible. Reassess your workforce needs while keeping in mind that governments have put in place programs and measures to help keep workers employed and help businesses. Reduce your inventory or defer purchases, if possible. Try to liquidate part of your excess or obsolete inventory. The possibility of selling at a loss should be considered. Ask your suppliers about their terms for payments made after 30 days. If you anticipate financial difficulties, discuss with your landlord the possibilities of deferring the payment of your rent. Delay paying tax instalments and tax balances until the allowable dates announced by the different levels of government. Get a moratorium on repaying the principal of your current debts. Some financial partners have introduced measures for their clients that can apply for up to 6 months. Refinance some of your assets and sell surplus assets for cash in order to boost your company’s working capital. Evaluate if this is the right time to get involved in projects involving significant new expenses. Get a working capital loan that allows you to continue operating during this crisis period. |
| Taxes | Deadline | New deadline Federal |
New deadline Quebec |
| Filing of income tax returns for trusts that have a tax year-end on December 31, 2019 (T3 and TP-646) | March 30, 2020 | May 1, 2020 for trusts with a December 31, 2019 year-end
June 1, 2020 for trusts that should have filed by March 31, or April or May 2020 September 1, 2020 for trusts that must file in June, July or August 2020 |
May 1, 2020 for trusts with a December 31, 2019 year-end
June 1, 2020 for trusts whose year-end ends in the period from January 1 to March 1, 2020 September 1, 2020 for trusts ends in the period from March 2 to May 31, 2020 |
| Payment of taxes | Within 90 days of the end of the taxation year | September 1, 2020 for all tax payments that become due on or after March 18, 2020 and before September 1, 2020 |
September 1, 2020 for all tax payments that become due on or after March 18, 2020 and before September 1, 2020 |
| Payment of tax instalment owing by March 15, 2020 | March 15, 2020 | No change | No change |
| Payment of tax instalment owing by June 15, 2020 | June 15, 2020 | September 1, 2020 | September 1, 2020 |
| Taxes and other | Deadline | New deadline Federal |
New deadline Quebec |
| Filing of T5013 and TP-600 | March 31, 2020 | May 1, 2020 | May 1, 2020 |
| Filing of T5013 and TP-600 | Beginning May 31, 2020 and ending August 31, 2020 | September 1, 2020 | September 1, 2020 |
| Filing of income tax returns (GST/HST/QST) | Monthly Quarterly or Annually |
Tax returns must still be filed on the usual dates. However, no late-filing penalty will be charged if returns due March 31, April 30 and June 1, 2020 are filed no later than June 30, 2020 | Tax returns must still be filed on the usual dates. However, no late-filing penalty will be charged if returns due March 31, April 30 and June 1, 2020 are filed no later than June 30, 2020 |
| Payment of taxes | Monthly Quarterly or Annually |
Amounts due on March 31, April 30 and May 31, 2020 can be paid on June 30, 2020 | Amounts due on March 31, April 30 and May 31, 2020 can be paid on June 30, 2020 |
| Payment of Registration Fees (REQ) | From January 1 to June 15 | Not applicable | For annual reports to be filed between March 13 and August 31, 2020, payments may be made on September 1, 2020 |
| Filing and payment – Tax on lodging | First quarter of 2020 – April 30, 2020 | Not applicable | July 31, 2020 |
| Payment of source deductions | Weekly Semi-monthly Monthly Quarterly Annually |
Source deductions must still be paid on the usual dates | Source deductions must still be paid on the usual dates |
| Filing of CNESST reports | March 14, 2020 | Not applicable | June 1, 2020 |
| CNESST account payment | Deadline appearing on the statement | Not applicable | August 31, 2020 |
| Support for businesses | |
| Temporary Wage Subsidy for Employers |
The federal government is offering certain employers a temporary wage subsidy for three months. The subsidy is equal to 10% of the remuneration paid during this period, up to $1,375 for each employee to a maximum of $25,000 per employer. Employers will be able to benefit immediately from this support measure by reducing the amount of income tax withheld from their employees’ remuneration. For further details, click HERE. |
| Canada Emergency Wage Subsidy |
The federal government is offering all employers a temporary wage subsidy for the period from March 16 to June 5, 2020. However, it has been announced that the SSUC will be extended until August 29, 2020. To this effect, relatively small adjustments terms and conditions could be made. This subsidy is equal to 75% of the remuneration paid for the period, up to a maximum of $847 per employee per week. In contrast with the temporary wage subsidy, there is no limit per employer. Employers must apply to the Canada Revenue Agency. For further details, click HERE. |
| Refund for a portion of payroll taxes |
Employers who qualify for the CEWS are entitled to a 100% refund for employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan and the Quebec Parental Insurance Plan. This refund covers 100% of employer-paid contributions for eligible employees for each week during which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. In general, an employee is considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund is not available for eligible employees who are on leave with pay for only a portion of a week. Employers must continue to collect and remit employer and employee contributions to each program as usual. They must apply for the refund through their CEWS application. There is no limit to the amount that can be claimed. |
| Reimbursement of a Portion of the Health Services Fund Contribution |
Employers that are eligible to CEWS may be entitled to the total reimbursement of their employer contribution to the Health Services Fund for certain employees. The reimbursement period covers the period for which the employer is eligible for SUCC, that is, until August 29, 2020. This refund covers 100% of employer-paid contributions for eligible employees for each week during which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. In general, an employee is considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund is not available for eligible employees who are on leave with pay for only a portion of a week. Employers can either make a request when submitting their 2020 Summary of Source Deductions and Employer Contributions Summary or reduce their periodic payments. The amount of any government assistance, non-government assistance or any profit or benefit attributable to an expense that is eligible to the reimbursement of Health Services Fund contributions must be subtracted. However, an amount received or receivable as a refundable tax credit for SMEs to foster the retention of experienced workers or a refundable tax credit for SMEs for persons with a severely limited capacity for employment are not a government assistance for the purposes of the credit on employers contribution to the Health Services Fund. There is no limit to the amount that can be claimed. |
| Reduction of part of the contribution to the CNESST |
Employers who benefit from the CEWS do not have to pay an insurance premium to the CNESST, both on the amount of the subsidy and on the additional amount they could pay during this period, for the weeks when workers don’t work. Consequently, no periodic payment must be made on these amounts and the necessary adjustments will be possible when the 2020 Statement of Wages is produced. On the other hand, for the weeks in which workers provide work, even part-time, employers must declare the entire subsidy and the additional amount that they could pay to their workers in calculating the periodic payments. |
| Work-sharing |
Benefits for workers who agree to reduce their normal working hours because of developments beyond the control of their employers, extending the eligibility period for work-sharing agreements to 76 weeks. |
| Municipal taxes – City of Montréal |
The deadline for the second property tax payment has been deferred until September 1, 2020. |
| Financial support | |
| Canada Emergency Business Account |
This program provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000). For further details, click HERE |
| Emergency assistance for small and medium-sized businesses |
The Aide d’urgence aux petites et moyennes entreprises program is designed to support, for a limited time, eligible businesses faced with financial difficulties because of COVID-19 and that need less than $50,000 in cash. The following businesses are eligible for the program:
For more information, you can go to the program’s website by following this link (French only): |
| Canada Emergency Commercial Rent Assistance (CECRA) |
Implementation of the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June. For further details, click HERE |
| Regional relief and recovery fund (RRRF) |
Businesses and non-profit organizations that are not eligible for other federal programs may have access to funding through the RRRF. For more details, you can consult the following website: |
| Co-Lending Program for Small and Medium Enterprises |
To provide additional liquidity support for Canadian businesses, the Co-Lending Program brings the Business Development Bank of Canada (BDC) together with financial institutions to co-lend term loans to SMEs. Eligible businesses may obtain incremental credit amounts up to $6.25 million. These loans are available through your financial institution. Please refer to your financial institution’s website for details on how to apply. |
| Business Development Bank of Canada – BDC |
Working capital loans of up to $2 million with flexible terms and payment postponements for qualifying businesses |
| Investissement Québec’s PACTE (Concerted temporary action program for businesses) |
This measure is intended for companies operating in Quebec that have a satisfactory history of profitability but are currently experiencing a precarious situation and are in temporary financial difficulty because of COVID-19. The program provides access to a working capital loan. For detailed information on the program, contact your financial institution or visit the Investissement Québec website: |
| Regional Development Agencies | If you are a tourism operator or a small- or medium-sized business or organization impacted by the sudden shifts in the economy and need pressing assistance, the Regional Development Agencies could assist you with access to federal funding to help you stay in business. |
| Bank of Canada |
The Bank of Canada has reduced its key interest rate to 0.25% bps to stimulate the economy currently affected by the COVID-19 crisis. |
| Financial institutions |
The major chartered banks, Desjardins, the Fonds de solidarité FTQ, Fondaction, Investissement Québec, PME MTL and others have undertaken to work with their clients to provide them with tailored solutions that allow them to manage the difficulties arising from the current situation. This support includes up to six months (three months for Fondaction) of loan deferral and the opportunity to postpone payments on other credit products. Business owners who are facing difficulties are asked to contact their bank directly to discuss possible solutions. |
| A few recommendations to preserve your cash flow: |
Revise your cash budget based on a lower income between now and July 2020. That way you can assess the impact on your cash flow (liquidity) to better predict your financial needs in the coming months. Use an employee who is well-versed in collection and put them to work collecting your accounts receivable. Ask for deposits from your customers, if possible. Make credit less available to your customers and assess their ability to get through this crisis before delivering the merchandise. Cut down on your expenses as much as possible. Reassess your workforce needs while keeping in mind that governments have put in place programs and measures to help keep workers employed and help businesses. Reduce your inventory or defer purchases, if possible. Try to liquidate part of your excess or obsolete inventory. The possibility of selling at a loss should be considered. Ask your suppliers about their terms for payments made after 30 days. If you anticipate financial difficulties, discuss with your landlord the possibilities of deferring the payment of your rent. Delay paying tax instalments and tax balances until the allowable dates announced by the different levels of government. Get a moratorium on repaying the principal of your current debts. Some financial partners have introduced measures for their clients that can apply for up to 6 months. Refinance some of your assets and sell surplus assets for cash in order to boost your company’s working capital. Evaluate if this is the right time to get involved in projects involving significant new expenses. Get a working capital loan that allows you to continue operating during this crisis period. |
| Taxes and other | Deadline | New deadline Federal |
New deadline Quebec |
| Filing of income tax returns (T2 and CO-17) |
Within 6 months of the end of the taxation year | June 1, 2020 for income tax returns that are due from March 17 to May 31, 2020
September 1, 2020 for tax returns with filing deadlines from June 1 to August 31, 2020 |
June 1, 2020 for income tax returns that are due from March 17 to May 31, 2020
September 1, 2020 for tax returns with filing deadlines from June 1 to August 31, 2020 |
| Payment of taxes (federal – Part I tax only) |
2 months after the end of the tax year (or 3 months for CPCCs at the federal level) | September 1, 2020 for any payment of income tax amounts that become owing on or after March 18 and before September 1, 2020 | September 1, 2020 for all tax payments that become due on or after March 18, 2020 and before September 1, 2020 |
| Payment of Part IV, IV.I and other taxes | 2 months after the end of the tax year | No specific reference | Not applicable |
| Tax instalment payment | Monthly Quarterly |
September 1, 2020 for any payment of income tax amounts that become owing on or after March 18 and before September 1, 2020 | September 1, 2020 for any payment of income tax amounts that become owing on or after March 18 and before September 1, 2020 |
| Payment of Registration Fees (REQ) | From May 15 to November 15 or 2 months after year-end | Not applicable | For annual reports to be filed between March 13 and August 31, 2020, payments may be made on September 1, 2020 |
| Filing of income tax returns (GST/HST/QST) | Monthly Quarterly or Annually |
Tax returns must still be filed on the usual dates. However, no late-filing penalty will be charged if returns due March 31, April 30 and June 1, 2020 are filed no later than June 30, 2020 | Tax returns must still be filed on the usual dates. However, no late-filing penalty will be charged if returns due March 31, April 30 and June 1, 2020 are filed no later than June 30, 2020 |
| Tax payment | Monthly Quarterly Annually |
Amounts due on March 31, April 30 and May 31, 2020 can be paid on June 30, 2020 | Amounts due on March 31, April 30 and May 31, 2020 can be paid on June 30, 2020 |
| Filing and payment – Tax on lodging | First quarter of 2020 – April 30, 2020 | Not applicable | July 31, 2020 |
| Payment of source deductions | Weekly Semi-monthly Monthly Quarterly Annually |
Source deductions must still be paid on the usual dates | Source deductions must still be paid on the usual dates |
| Filing of CNESST reports | March 14, 2020 | Not applicable | June 1, 2020 |
| CNESST account payment | Deadline appearing on the statement | Not applicable | August 31, 2020 |
| Support for businesses | |
| Temporary Wage Subsidy for Employers |
The federal government is offering certain employers a temporary wage subsidy for three months. The subsidy is equal to 10% of the remuneration paid during this period, up to $1,375 for each employee to a maximum of $25,000 per employer. Employers will be able to benefit immediately from this support measure by reducing the amount of income tax withheld from their employees’ remuneration. For further details, click HERE. |
| Canada Emergency Wage Subsidy |
The federal government is offering all employers a temporary wage subsidy for the period from March 16 to June 5, 2020. However, it has been announced that the SSUC will be extended until August 29, 2020. To this effect, relatively small adjustments terms and conditions could be made. This subsidy is equal to 75% of the remuneration paid for the period, up to a maximum of $847 per employee per week. In contrast with the temporary wage subsidy, there is no limit per employer. Employers must apply to the Canada Revenue Agency. For further details, click HERE. |
| Refund for a portion of payroll taxes |
Employers who qualify for the CEWS are entitled to a 100% refund for employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan and the Quebec Parental Insurance Plan. This refund covers 100% of employer-paid contributions for eligible employees for each week during which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. In general, an employee is considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund is not available for eligible employees who are on leave with pay for only a portion of a week. Employers must continue to collect and remit employer and employee contributions to each program as usual. They must apply for the refund through their CEWS application. There is no limit to the amount that can be claimed. |
| Reimbursement of a Portion of the Health Services Fund Contribution |
Employers that are eligible to CEWS may be entitled to the total reimbursement of their employer contribution to the Health Services Fund for certain employees. The reimbursement period covers the period for which the employer is eligible for SUCC, that is, until August 29, 2020. This refund covers 100% of employer-paid contributions for eligible employees for each week during which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. In general, an employee is considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund is not available for eligible employees who are on leave with pay for only a portion of a week. Employers can either make a request when submitting their 2020 Summary of Source Deductions and Employer Contributions Summary or reduce their periodic payments. The amount of any government assistance, non-government assistance or any profit or benefit attributable to an expense that is eligible to the reimbursement of Health Services Fund contributions must be subtracted. However, an amount received or receivable as a refundable tax credit for SMEs to foster the retention of experienced workers or a refundable tax credit for SMEs for persons with a severely limited capacity for employment are not a government assistance for the purposes of the credit on employers contribution to the Health Services Fund. There is no limit to the amount that can be claimed. |
| Reduction of part of the contribution to the CNESST |
Employers who benefit from the CEWS do not have to pay an insurance premium to the CNESST, both on the amount of the subsidy and on the additional amount they could pay during this period, for the weeks when workers don’t work. Consequently, no periodic payment must be made on these amounts and the necessary adjustments will be possible when the 2020 Statement of Wages is produced. On the other hand, for the weeks in which workers provide work, even part-time, employers must declare the entire subsidy and the additional amount that they could pay to their workers in calculating the periodic payments. |
| Work-sharing |
Benefits for workers who agree to reduce their normal working hours because of developments beyond the control of their employers, extending the eligibility period for work-sharing agreements to 76 weeks. |
| Municipal taxes – City of Montréal |
The deadline for the second property tax payment has been deferred until September 1, 2020. |
| Financial support | |
| Canada Emergency Business Account |
This program provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000). For further details, click HERE |
| Emergency assistance for small and medium-sized businesses |
The Aide d’urgence aux petites et moyennes entreprises program is designed to support, for a limited time, eligible businesses faced with financial difficulties because of COVID-19 and that need less than $50,000 in cash. The following businesses are eligible for the program:
For more information, you can go to the program’s website by following this link (French only): |
| Canada Emergency Commercial Rent Assistance (CECRA) |
Implementation of the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June. For further details, click HERE |
| Regional relief and recovery fund (RRRF) |
Businesses and non-profit organizations that are not eligible for other federal programs may have access to funding through the RRRF. For more details, you can consult the following website: |
| Co-Lending Program for Small and Medium Enterprises |
To provide additional liquidity support for Canadian businesses, the Co-Lending Program brings the Business Development Bank of Canada (BDC) together with financial institutions to co-lend term loans to SMEs. Eligible businesses may obtain incremental credit amounts up to $6.25 million. These loans are available through your financial institution. Please refer to their website for details on how to apply. |
| Business Development Bank of Canada – BDC |
Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses |
| Investissement Québec’s PACTE (Concerted temporary action program for businesses) |
This measure is intended for companies operating in Quebec that have a satisfactory history of profitability but are currently experiencing a precarious situation and are in temporary financial difficulty because of COVID-19. The program provides access to a working capital loan. For detailed information on the program, contact your financial institution or visit the Investissement Québec website: |
| Regional Development Agencies |
If you are a tourism operator or a small- or medium-sized business or organization impacted by the sudden shifts in the economy and need pressing assistance, the Regional Development Agencies could assist you with access to federal funding to help you stay in business. |
| Bank of Canada |
The Bank of Canada has reduced its key interest rate to 0.25% bps to stimulate the economy currently affected by the COVID-19 crisis. |
| Financial Institutions |
The major chartered banks, Desjardins, the Fonds de solidarité FTQ, Fondaction, Investissement Québec, PME MTL and others have undertaken to work with their clients to provide them with tailored solutions that allow them to manage the difficulties arising from the current situation. This support includes up to six months (three months for Fondaction) of loan deferral and the opportunity to postpone payments on other credit products. Business owners who are facing difficulties are asked to contact their bank directly to discuss possible solutions. |
| A few recommendations to preserve your cash flow: |
Revise your cash budget based on a lower income between now and July 2020. That way you can assess the impact on your cash flow (liquidity) to better predict your financial needs in the coming months. Use an employee who is well-versed in collection and put them to work collecting your accounts receivable. Ask for deposits from your customers, if possible. Make credit less available to your customers and assess their ability to get through this crisis before delivering the merchandise. Cut down on your expenses as much as possible. Reassess your workforce needs while keeping in mind that governments have put in place programs and measures to help keep workers employed and help businesses. Reduce your inventory or defer purchases, if possible. Try to liquidate part of your excess or obsolete inventory. The possibility of selling at a loss should be considered. Ask your suppliers about their terms for payments made after 30 days. If you anticipate financial difficulties, discuss with your landlord the possibilities of deferring the payment of your rent. Delay paying tax instalments and tax balances until the allowable dates announced by the different levels of government. Get a moratorium on repaying the principal of your current debts. Some financial partners have introduced measures for their clients that can apply for up to 6 months. Refinance some of your assets and sell surplus assets for cash in order to boost your company’s working capital. Evaluate if this is the right time to get involved in projects involving significant new expenses. Get a working capital loan that allows you to continue operating during this crisis period. |
