business owners, which benefit are you going to apply? CEWS or CERB

coolmanfever · Apr 7, 2020

Hi all

seems like we have two options paying ourselves. Based on my understanding, we can only receive benefit from either but not both:

CANADA EMERGENCY WAGE SUBSIDY (CEWS)
CANADA EMERGENCY RESPONSE BENEFIT (CERB)

CEWS would provide a higher benefit of up to $847 per week versus $2,000 per month ($500 per week) for CERB. But to receive CEWS, there is more scrutiny to the corporation to meet the requirement.

Which one do you plan to apply?

FlorenceYi · Apr 7, 2020

Links:

CERB - https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html
CEWS - https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html
CEBA - also the 40k business loan available at multiple financial institutions (10k forgiveness if paid back by dec 2022 and no penalty to prepay it all back at anytime, see if you are eligible!)

How come you cannot apply to both for people who have employee jobs as well being self employed and who have suffered a reduction of business income >30% as well? Where does it say this if you can link the source.

Following.

glamphotographer · Apr 7, 2020

coolmanfever said:
Hi all

seems like we have two options paying ourselves. Based on my understanding, we can only receive benefit from either but not both:

CANADA EMERGENCY WAGE SUBSIDY (CEWS)
CANADA EMERGENCY RESPONSE BENEFIT (CERB)

CEWS would provide a higher benefit of up to $847 per week versus $2,000 per month ($500 per week) for CERB. But to receive CEWS, there is more scrutiny to the corporation to meet the requirement.

Which one do you plan to apply?

For CEWS, prove that you lost 30% in revenue. Is that hard to do?

FlorenceYi · Apr 9, 2020

glamphotographer said:
For CEWS, prove that you lost 30% in revenue. Is that hard to do?

I just applied for the 40k loan - the information they asked for was:
1. Payroll account number
2. T4 summary total payroll amount paid in 2019
3. business info legal names standard info about ur business

Im still waiting for CEWS portal to open up but I imagine they will ask you to report your earnings for 2019 and be a bit of an honour system, and cross compare 2020 numbers at a later date when they do audits? same as for CERB.. right now its honour system but im sure a bunch who didnt actually qualify will be asked to return the money once all auditing comes through.

EDIT: here is a new update article on the topic of CEWS
https://www.bdo.ca/en-ca/insights/tax/tax-alerts/covid-19-wage-subsidy-programs/

"This subsidy is to help businesses of all sizes faced with a significant decline of revenue to either keep their workforce on payroll or re-hire them. Doing so will keep these workers off Employment Insurance (EI) Benefits and the $2,000 monthly payments under the recently announced Canada Emergency Response Benefit (CERB).

Revenue Eligibility Requirements
Two benchmarks are being provided to measure the revenue decline. First, as a general year-over-year approach, the revenue decline can be measured by comparing the applicable month in 2020 to the same month in 2019. For example, comparing March 2020 to March 2019. Alternatively, the revenue of the applicable month in 2020 can be compared to the average of January and February 2020 revenue. The employer can choose only one approach to use throughout the program period.
Eligible employers will have to reapply for the subsidy each month and has to attest to the decline in revenue when they apply.

Application for the 75% CEWS
Entitlement to the subsidy will be based entirely on the salary or wages actually paid to employees. Therefore, employers will need to pay the salary or wages to their employees, and, if eligible, will be repaid for those salaries or wages by the government through this subsidy program."

Gosh darn lol. I guess closed businesses don't qualify.

brazilianguy · Apr 9, 2020

FlorenceYi said:
I just applied for the 40k loan - the information they asked for was:
1. Payroll account number
2. T4 summary total payroll amount paid in 2019
3. business info legal names standard info about ur business

Im still waiting for CEWS portal to open up but I imagine they will ask you to report your earnings for 2019 and be a bit of an honour system, and cross compare 2020 numbers at a later date when they do audits? same as for CERB.. right now its honour system but im sure a bunch who didnt actually qualify will be asked to return the money once all auditing comes through.

EDIT: here is a new update article on the topic of CEWS
https://www.bdo.ca/en-ca/insights/tax/tax-alerts/covid-19-wage-subsidy-programs/

"This subsidy is to help businesses of all sizes faced with a significant decline of revenue to either keep their workforce on payroll or re-hire them. Doing so will keep these workers off Employment Insurance (EI) Benefits and the $2,000 monthly payments under the recently announced Canada Emergency Response Benefit (CERB).

Revenue Eligibility Requirements
Two benchmarks are being provided to measure the revenue decline. First, as a general year-over-year approach, the revenue decline can be measured by comparing the applicable month in 2020 to the same month in 2019. For example, comparing March 2020 to March 2019. Alternatively, the revenue of the applicable month in 2020 can be compared to the average of January and February 2020 revenue. The employer can choose only one approach to use throughout the program period.
Eligible employers will have to reapply for the subsidy each month and has to attest to the decline in revenue when they apply.

Application for the 75% CEWS
Entitlement to the subsidy will be based entirely on the salary or wages actually paid to employees. Therefore, employers will need to pay the salary or wages to their employees, and, if eligible, will be repaid for those salaries or wages by the government through this subsidy program."

Gosh darn lol. I guess closed businesses don't qualify.

I'm sorry but what kind of business are you in for you to think you are qualified for the 40k loan? This is not an insult at all , I'm just very curious. Do you run a family restaurant or something or a nail salon perhaps? In addition to your escorting of course Please do tell

Anbarandy · Apr 9, 2020

brazilianguy said:
I'm sorry but what kind of business are you in for you to think you are qualified for the 40k loan? This is not an insult at all , I'm just very curious. Do you run a family restaurant or something or a nail salon perhaps? In addition to your escorting of course Please do tell

Probably 'Double Dip Enterprises' or 'Can I Get Away With This Inc.'.

blueray · Apr 9, 2020

She's a partner in a Law firm, Dewey, Cheetem & Howe

newguyhere · Apr 9, 2020

brazilianguy said:
I'm sorry but what kind of business are you in for you to think you are qualified for the 40k loan? This is not an insult at all , I'm just very curious. Do you run a family restaurant or something or a nail salon perhaps? In addition to your escorting of course Please do tell

I don't think those are the type of info anyone would want to share on the forums. So don't be surprised if your question is ignored.

On the other hand, thank you FlorenreYi for going out of your way and sharing those info.

brazilianguy · Apr 9, 2020

newguyhere said:
I don't think those are the type of info anyone would want to share on the forums. So don't be surprised if your question is ignored.

On the other hand, thank you FlorenreYi for going out of your way and sharing those info.

Yeah but she could answer in a very general way. She could say I run a small family restaurant, or business with a friend we both own a nail salon?? A food truck company? A small boutique coffee shop? Lmao I'm not asking for the exact address of her business lmao

Samranchoi · Apr 9, 2020

brazilianguy said:
Yeah but she could answer in a very general way. She could say I run a small family restaurant, or business with a friend we both own a nail salon?? A food truck company? A small boutique coffee shop? Lmao I'm not asking for the exact address of her business lmao

She stated the following so what does it matter what type of business she has:

I just applied for the 40k loan - the information they asked for was:
1. Payroll account number
2. T4 summary total payroll amount paid in 2019
3. business info legal names standard info about ur business

brazilianguy · Apr 9, 2020

Samranchoi said:
She stated the following so what does it matter what type of business she has:

I just applied for the 40k loan - the information they asked for was:
1. Payroll account number
2. T4 summary total payroll amount paid in 2019
3. business info legal names standard info about ur business

Lmao I'm genuinely curious what kind of business she runs. It wasnt an insult or a dig at her at all lmao if she said "I run a restaurant." I would have left it and said goodluck hope you get your loan lol. In other words I'm trying to make small talk?? Lmao some of you white knights are a whole different level kind of simps lmao like chill.

bazokajoe · Apr 9, 2020

brazilianguy said:
Lmao I'm genuinely curious what kind of business she runs. It wasnt an insult or a dig at her at all lmao if she said "I run a restaurant." I would have left it and said goodluck hope you get your loan lol. In other words I'm trying to make small talk?? Lmao some of you white knights are a whole different level kind of simps lmao like chill.

Small talk or stalking?

Indiana · Apr 9, 2020

I like the idea of borrowing 40k and repaying 30k.

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