June 2021 Newsletter
Canada Recovery Hiring Program
Eligible employers may receive a subsidy of up to 50% on the incremental remuneration paid to hired employees from June 6, 2021 - November 20, 2021. Eligible employers would need to experience a decline in revenue of more than 0% from June 6, 2021 - July 3, 2021; and more than 10% from July 4, 2021 - November 20, 2021.
Limitations: It is permitted to claim either the hiring subsidy or the CEWS for a particular qualifying period, but not both.
Ontario Covid-19 Worker Income Protection Benefits
As of April 19, 2021, the Employment Standards Act was amended to require employers to provide employees with up to three days of paid infectious disease emergency leave because of certain Covid-19 reasons.
Eligibility: An employee who is covered by the ESA is entitled up to three paid days of leave for reasons including:
Going for a Covid-19 test or staying home awaiting test results.
Being sick with Covid-19.
Going to get vaccinated, or experiencing side effects from the Covid-19 vaccination.
Staying home having been advised to self isolate by an employer, medical practitioner or other specified authority.
Unable to work to provide care or support to certain relatives for Covid-19 related reasons.
Employer responsibility: Employers are required to pay employees up to $200 a day, for up to three days. Employers cannot require a doctor's note to be provided by employees and the days do not need to be taken consecutively.
Employer reimbursement: An application must be made to the Workplace Safety and Insurance Board within 120 days of the date of the first leave day paid to an employee. Employers will be reimbursed up to $200 per employee, per day to a maximum of three days per employee.
Employers can click here to make a claim.
CEWS & CERS extended until September 25, 2021
The Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy, and the Lockdown Support programs will be extended until September 25, 2021. The subsidy rates will gradually decline from July - September 2021 as the economic and public health situation improves.
Important Federal Budget Information
As per the 2021 Federal Budget, certain capital assets will be eligible for immediate expensing in the year of purchase rather than amortizing the expense over the life of the asset.
Qualifying capital assets: Substantially all equipment, vehicles, machinery, furniture and computers purchased on or after April 19, 2021, which are available for use before January 1, 2024.
Limitations: The Company must be a CCPC. There is a limit of $1,500,000 per associated group of companies each year (pro-rated in first and final years).
Excluded capital assets: Buildings, intangible assets and land; as well as capital assets which were purchased from the taxpayer/related party or obtained from a tax-free rollover.
Bookkeeping implications: There should be no changes as to how bookkeeping of capital assets is completed. Capital assets should still be added to their appropriate balance sheet accounts for review of eligibility at year-end. Continue to keep copies of all receipts for capital expenditures. We are always available to provide additional guidance on these topics.
Vacation:
Make sure your employees are using their vacation time!
Your employees are legally entitled to take statutory holiday days off work and receive the appropriate public holiday pay (stat pay). A pay rate of time-and-a-half is applicable to any employees in Ontario who work on the stat holiday dates, plus public holiday pay. Please contact us if you need help calculating these amounts.
Statutory Holidays:
Canada Day- July 1
Labour Day- September 6