In this edition of the Promo Insiders podcast, Sara Lavenduski with ASI Canada welcomes Fabio Campanella, a tax, investment and personal finance expert with Campanella McDonald LLP in Toronto, for a look into key aspects of the government’s COVID-19 Economic Response Plan and how it benefits companies and workers who’ve been hard-hit by the recent business shutdown orders.

After the initial rollout of the Plan in late March, government officials continued to discuss certain measures and fielded questions from the press and an anxious public. The latest version of the Plan finally received Royal Assent in mid-April, but business owners and employees still have questions about what they’re eligible for and next steps they should take.

Podcast chapters
1:50 – An overview of the Canada Emergency Response Benefit (CERB) and who qualifies
7:00 – How companies can qualify for the 75% Emergency Wage Subsidy
10:55 – Are employers obligated to pay workers the remaining 25% not covered by the Subsidy?
13:24 – What does “gaming the system” potentially look like?
16:54 – The 10% Temporary Wage Subsidy
17:14 – “Repurposing employees” to keep them on
18:21 -- $40,000 loans through the Emergency Business Account
21:07 – What to do about filing taxes with the extended deadline
23:00 – The current economic situation
26:50 – Investment advice for those close to retirement

Fabio Campanella, a tax, investment and personal finance expert with Campanella McDonald LLP in Toronto

Among the new measures are the Canada Emergency Response Benefit (CERB), a weekly benefit of $500 for four months, for those who can’t work due to the coronavirus and aren’t eligible for Employment Insurance, such as the self-employed. “It’s essentially a program to put groceries on the table,” says Campanella. “There are a lot of people that for whatever reason can’t work right now because of COVID-19.” He added that the CERB is only available to those who are unable to work; if you’re able to work remotely, for example, you’re not eligible.

In addition, the Emergency Wage Subsidy will allow workers to receive 75% of their pre-virus wages on the first $58,700 they earned, for a maximum of $847 per employee. It’s backdated to March 15, and will be in effect for the next three months. But to qualify, firms need to show that they’ve seen a certain drop in revenue.

“The legislation is quite complex,” says Campanella. “It is confusing. In essence, they’re looking for a 15% drop in revenues in March and a 30% drop thereafter. They’re using a very broad base to capture as many individual companies as possible.”

Businesses can also apply through private lenders for $40,000 small business loans as part of the Business Credit Availability Program. Additionally, Campanella suggests that Canadians file their taxes as soon as possible – even though the deadline has been extended to June 1 – to get their refunds.

Watch the video below: