April 24, 2020 - Federal and Provincial Assistance Programs Available to Employers and Employees

Since the outbreak of the pandemic, the federal and provincial governments have been regularly introducing new and updated programs to assist individuals and businesses in managing financially as best as possible. This CSSEA Info outlines the key initiatives from both levels of government that may assist employers and employees in this sector to meet their financial challenges. Website links to the programs are provided throughout this communication and employers and employees are encouraged to consult them for more detailed information and new developments.

Federal Programs

1. Canada Emergency Wage Subsidy (CEWS)

The Canada Emergency Wage Subsidy (CEWS) provides supports to employers that are hardest hit by the pandemic, with the aim of protecting employment. At this time, the CEWS will likely have greatest application for non-provincially funded (NPF) employers that are beyond the scope of the provincial government’s efforts to maintain the delivery of community social services.

The CEWS generally covers 75% of employees’ wages – up to $847 per week per employee, for those employers who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May.

The program will be in place for a 12-week period, from March 15 to June 6, 2020. The subsidy is retroactive to March 15, and will enable employers to: re-hire employees who may have been previously laid off as a result of COVID-19; help prevent further job losses; and better position employers to resume normal operations following the crisis.

Registered charities and non-profit organizations may choose whether to include revenue from government sources, such as grants, when applying for the subsidy but they must adopt the same approach for each period applied for.

Employers who are eligible for the CEWS are also entitled to receive a 100% refund for employer contributions to Employment Insurance and the Canada Pension Plan premiums paid in respect of employees who are on leave with pay.

For employers that are eligible for both the CEWS and the 10% Temporary Wage Subsidy (see next), the Temporary 10% Wage Subsidy for remuneration paid will generally reduce the amount available to be claimed under the CEWS in that same period.

Applications for the CEWS will be open on April 27 and employers can use their Canada Revenue Agency (“CRA”) “My Business Account” to apply. The government expects that 90% of CEWS applications will be processed by May 5, 2020, with payments to follow quickly by direct deposit or cheque.

For more information:
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

2. Temporary 10% Wage Subsidy

The Temporary 10% Wage Subsidy is a three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).

Eligible employers are a(n):

• individual (excluding trusts),
• partnership,
• non-profit organization,
• registered charity, or
• Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction;

And:

• have an existing business number and payroll program account with the CRA on March 18, 2020; and
• pay salary, wages, bonuses, or other remuneration to an eligible employee.

The subsidy is equal to 10% of the remuneration paid from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee to a maximum of $25,000 total per employer.

For more information:
https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

3. Work Sharing Program

The federal government is extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.

For more information:
https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html#h4.01

4. Temporary salary top-up for low income essential workers

The federal government is working with the provinces and territories and is transferring funds to them in a cost-sharing arrangement to assist in temporarily topping up the salaries of low-income workers (those who earn less than $2,500 per month on a full time basis), that the provinces and territories have deemed essential in the fight against COVID-19.

This is intended to provide an increase in salaries to those employees who are deemed to be working in essential services industries. As most of community social services employees covered by the sectoral collective agreements earn more than $2,500 per month on a full time basis, this is expected to have little application to bargaining unit employees. But, this may apply to non-union employees in this sector.

As this is a new federal program, please watch for more details to be released shortly.

5. Emergency Community Support Fund (ECSF)

The federal government also announced on April 21, 2020 the creation of the Emergency Community Support Fund (ECSF), pledging $350 million to support community and national charities and non-profit organizations that help seniors, the homeless, and others made more vulnerable by the pandemic. The Prime Minister noted that such organizations have experienced a drop in donations while at the same time a rise in demand for their services.

The funds will be distributed in part directly to small, independent front line organizations with the remainder to national organizations (such as the United Way Canada, the Canadian Red Cross and the Community Foundations of Canada), which will in turn distribute to local community organizations and programs.

The ECSF will not affect a charity or non-profit’s eligibility for the CEWS in respect of its employees.

Details on how organizations can apply for funding and how funding will be distributed are forthcoming.

6. Canada Emergency Response Benefit (CERB)

The federal government will provide a taxable benefit of $2,000 every four weeks for up to 16 weeks to eligible employees who have lost their income due to COVID-19.

The CERB is available to employees who meet all of the following conditions:

1. live in Canada and are at least 15 years old
2. stopped working (but see change below *) because of COVID-19 or are eligible for EI regular or sickness benefits
3. have not voluntarily quit their job
4. had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application.

On April 15, changes were announced to the eligibility rules to:

1.  * Allow people to earn up to $1,000 per month while collecting the CERB.
2. Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work because of COVID-19.
3. Extend the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19.

Employees would not receive the CERB and EI benefits concurrently, and an online questionnaire helps determine which of the two options is best for an employee. It is not necessary to apply for the CERB if an employee has already applied for EI.

The online application can be found here:
https://www.canada.ca/en/services/benefits/ei/cerb-application.html
Employees may also apply over the phone: 1 800 959 2019 or 1 800 959 2041

7. Employment Insurance

This remains the baseline unemployment benefit for severed employees who may not be eligible to access the other benefits related to COVID-19 outlined above. The benefit amount continues to be 55% of insurable earnings up to a maximum of $573/week.

Provincial Programs

1. Funding Continuity

The provincial government has maintained funding for community social services programs to encourage employers to maintain employment of employees in this essential services sector. It has also pledged to support extra staffing costs incurred as necessary.

In relation to Community Living Services programs specifically, the provincial government announced on April 21, 2020 that emergency COVID-19 funding will be distributed through Community Living BC (CLBC) to ensure people with developmental disabilities stay supported and safe during the pandemic. As part of the BC government’s $5-billion COVID-19 Action Plan, up to $35.6 million will be available over three months from CLBC to support service providers to continue delivering residential services, including group homes, home sharing and supported independent living that about 9,500 adults with developmental disabilities count on.

Under this temporary emergency support, CLBC service providers who provide residential services, such as group homes, can request funding to address overtime costs or staffing shortages and to access additional supplies for delivering disability-related supports to keep individuals safe.

People with developmental disabilities who live independently with the help of agency-supported living services have also been identified as vulnerable during the COVID-19 pandemic. Emergency funding will support service providers to adjust and continue supports to keep these people safe.

Many home-sharing providers are taking on extra caregiving requirements. This is because of the need to follow health guidelines, the disruption to services, such as community inclusion or day programs, and difficulty in acquiring resources that people usually access in their communities. These home-sharing providers will be able to apply for temporary additional funding to ensure people under their care remain supported. In some cases, these residential services are managed through individualized funding arrangements or person-centred societies, rather than service providers. They will also be able to access emergency funding to maintain residential services.

2. BC Emergency Benefit for Workers

This benefit will provide a one-time $1,000 payment to people whose ability to work has been affected due to COVID-19. BC residents who receive the federal Canada Emergency Response Benefit (CERB) above are eligible, including people who have run out of employment insurance (EI) benefits and qualify for the CERB.

Employees will need to state that they have filed or will file a 2019 BC income tax return to complete the application for the BC Emergency Benefit for Workers. The CRA has up-to-date guides on how to file taxes quickly online.

3. Temporary Rental Supplement

Provincial funding for housing supports are increased to ensure people can maintain their housing in the event of job or income loss. Annual rent increases are frozen and a temporary rent supplement is available for eligible households:

• with dependents, up to $500 per month
• without dependents, up to $300 per month

The supplement is paid directly to landlords.

The provincial government has halted all new and active evictions, except under exceptional circumstances.

Applications for the supplement are open on the BC Housing website: https://www.bchousing.org/COVID-19?bcgovtm=20200319_GCPE_AM_COVID_4_NOTIFICATION_BCGOV_BCGOV_EN_BC__NOTIFICATION

4. Child Care for Essential Services Employees

Community social services employees are considered essential employees. As a result, they are eligible for services to care for their children. The program listings and process for applying for these services are found here:
https://www2.gov.bc.ca/gov/content/family-social-supports/caring-for-young-children/child-care-response-covid-19/child-care-response-covid-19-parent/child-care-response-covid-19-parent-form

5. Relief for Businesses

There are a number of initiatives in effect to assist with business continuity, such as credit and financing options, tax relief, utility payment deferrals, and WorkSafeBC premium relief. For a comprehensive listing of the supports available, see:
https://www2.gov.bc.ca/gov/content/employment-business/business/small-business/resources/covid-19-supports

6. Support Service for BC businesses

A new COVID-19 Support Service for BC businesses launched on April 16, 2020. The BC Business COVID-19 Support Service was established to provide BC businesses with comprehensive information and resources about federal, provincial and other supports available to businesses impacted by COVID-19. The Service will be operated by Small Business BC and is sponsored by the provincial and federal governments.

Advisors are available Monday to Friday (8:00 am to 6:00 pm) and Saturday (10:00 am to 4:00 pm) at 1.833.254.4357 to provide support in multiple languages. The Service can also be reached by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or through an online chat feature.

More information can be found on its website: https://covid.smallbusinessbc.ca/hc/en-us