25 Oct Latest Updates on CEBA and CRB!
Upcoming Legislative Changes for Payroll.
With all the recent changes to the labour code and anticipated changes, we will endeavor to keep you up to date with all the latest news and changes once solidified. We will be keeping an eye on things as they develop over the next few months. Below is the link to Canada Revenue Agency. https://www.canada.ca/en/employment-social-development/programs/laws-regulations/labour/current-future-legislative.html
For businesses who received the CEBA loan in 2020 and or 2021
Business debt can be a source of anxiety, especially in a turbulent economy, but the CEBA loan gives you some breathing room. Before you rush into paying back your loan, review the repayment terms:
- Your loan is interest-free before December 31, 2022, and principal payments are not required.
- If the loan isn’t repaid by January 1, 2023, the loan becomes a 3-year term with a 5% fixed interest rate per year. Only interest payments are required on a monthly basis with the outstanding principal due in full by December 31, 2025.
Depending on the amount of your CEBA loan, the amount that is eligible for forgiveness will vary. The forgiveness benefit allows a portion of your loan to not require repayment:
- If you received a $40,000 CEBA loan, you can repay 75 percent of the total amount ($30,000) by December 31, 2022 and the remaining 25 percent ($10,000) is eligible for a loan forgiveness benefit.
- If you received a $60,000 CEBA loan, you can repay 66 percent of the total amount ($40,000) by December 31, 2022 and the remaining 34 percent ($20,000) is eligible for a loan forgiveness benefit.
The forgivable portion of the CEBA loan, $10,000 or $20,000, is taxable in the year in which the loan is received. It may be a good idea to create a repayment plan, one that helps you stay on track to pay back the repayable portion of your loan in time, so you can take advantage of the forgiveness benefit.
For those who received the CERB or Wage Subsidy
The transition from CERB to Employment Insurance (EI) …The Government of Canada announced changes to the Employment Insurance (EI) program and new recovery benefits that will continue to support workers.
If you need financial assistance after you received the CERB…As of September 27, 2020, there are some temporary changes to the EI program to help you access EI benefits. These changes will be in effect for 1 year. Find out if you qualify
New recovery benefits! You may be eligible for one of the new recovery benefits available from September 27, 2020 until October 23, 2021.
Canada Recovery Benefit (CRB)
The Canada Recovery Benefit provides eligible workers with up to 54 weeks of income support for those who are not eligible for EI and are either not employed or self-employed due to COVID-19, or had their employment/self-employment income reduced by at least 50% due to COVID-19. The first 42 weeks are paid at $500 per week (taxable, tax deducted at source), and the remaining 12 weeks are paid at $300 per week (taxable, tax deducted at source). All new Canada Recovery Benefit recipients on or after July 18, 2021 will also receive a rate of $300 per week. This benefit is paid in 2-week periods. Learn more about the Canada Recovery Benefit
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