CKL SMALL BUSINESSES, SOLE PROPRIETORS AND SELF-EMPLOYED - YOUR CHEAT SHEET FOR YOUR ELIGIBILITY FOR GOVERNMENT SUPPORT (THE NEW CERB, WAGE SUBSIDIES AND $40,000 LINE OF CREDIT)

Small businesses, sole proprietors and self-employed individuals in the City of Kawartha Lakes, as of April 9, 2020, help on whether you are eligible for the CERB, wage subsidies and the interest-free line of credit:

IF YOU OWN AND OPERATE A SMALL CORPORATION – AND YOU PAY YOURSELF A SALARY:

If so, and you pay yourself an annual salary through your corporation, then:

  • You do not qualify for the Canada Emergency Response Benefit (the “CERB”) ($500 weekly for up to 16 weeks) if you continue working
  • You do qualify for the CERB if you stop working for reasons related to COVID-19 and you have no income
  • You are eligible to apply for for the Cananda Emergency Wage Subsidiy (75% wage subsidy, up to $847 weekly for up to 3 months) or the alternative 10% wage subsidy (the “CEWS”)
  • You are eligible to apply for the Canada Emergency Business Account (“CEBA”) - $40,000 interest-free business loan/line of credit ($10,000 can be forgiven if $30,000 is paid off before Dec. 31, 2020)

For more information from us about qualifying for the CERB, check here: http://wardlegal.ca/31585663827879

For more information from us about qualifying for the CEBA, check here: http://wardlegal.ca/31585663827893 and here: http://wardlegal.ca/31586368607013

For more information about qualifying for the CEWS and how you calculate your wage subsidy, check here: http://wardlegal.ca/31585663827901

IF YOU ARE A SOLE PROPRIETOR (i.e., NO INCORPORATED BUSINESS) OR SELF-EMPLOYED:

  • You may be eligible for the CERB, if you continue working for less than 10 hours per week
  • You are eligible for the CERB if you stop working for reasons related to the virus
  • You are not eligible to receive the CEWS (either the 75% or 10% wage subsidy)
  • You are not eligible to receive the CEBA

IF YOU OWN AND OPERATE A SMALL CORPORATION – AND YOU PAY YOURSELF BY DIVIDENDS, NOT SALARY:

  • You are not eligible for the CERB if you continue working
  • You may be eligible for the CERB if you stop working, per the Canada Revenue Agency’s Web site update on Apr. 6, 2020
  • You are not eligible for the CEWS (both the 75% and 10% wage subsidies) or the CEBA
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Thank you for reading this - Jason Ward of WARDS LAWYERS PC.

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This WARDS LAWYERS PC blog is for general information only. It is not legal advice, or intended to be. Specific or more information may be necessary before advice could be provided for your circumstances.

More information? We're here to help - jason@wardlegal.ca | www.wardlegal.ca