Note: This page was updated to reflect new details on relief and direct assistance programmes on 1st May 2020.
COVID-19 has upended life for many of us, creating uncertainty for our families, our creative businesses, and the broader economy. Throughout these challenging times, we continue to encourage lawmakers across the EU, UK, and US to ensure that any relief packages include direct assistance to the self-employed and micro-businesses.
Some national governments have passed legislation that Etsy sellers may benefit from. While many government agencies are in the process of setting up these new programmes, you’ll find a summary of the resources and information on how to apply available below. We’ll continue to update this page as we learn more.
Please note that our goal is to update you on the current relief and direct assistance programmes which we hope will be helpful in supporting your small business. This information is for educational purposes only and isn’t intended to provide, and should not be relied upon, for, tax, legal, or accounting advice. Please consult your financial, tax and/or legal advisors to understand how these benefits may impact your business based on the laws and financial regulations in your jurisdiction.
Canada Emergency Response Benefit (CERB): The Government has set up a temporary income support scheme for workers, including self-employed individuals, who have ceased activities due to COVID-19. It provides a flat benefit of $2,000 for workers who have been out of work for 14 consecutive days in any four-week period for reasons relating to COVID-19. The CERB will be paid every four weeks, and be available from 15th March 2020 until 3rd October 2020. Note: You cannot apply to the CERB if you have already applied for Employment Insurance (EI) benefits.
To qualify for CERB benefits, applicants must:
- Be a resident of Canada
- Be 15 years or older
- Have had a total income of at least $5,000 (combined) in 2019 or in the 12 months immediately preceding the application, including from self-employment income.
- Receive no income, including from self-employment, for 14 consecutive days in a 4-week period for which they apply for benefits.
Applications to the CERB are now open, and you can apply in two ways: Online with a CRA My Account, or over the phone with an automated phone service. Both services are open daily (closed from 3:00 am to 6:00 am ET (8:00 am to 11 am in London)). More information on how to apply here.
Note: On 15th April, the Government also announced that part-time and seasonal workers are now eligible to apply for the CERB scheme. Workers who are earning up to $1,000 a month can therefore also apply to collect the CERB for up to four months. This extension also includes workers who have recently exhausted their Employment Insurance regular benefits and are unable to find a job because of COVID-19.
Provincial benefits: There are specific benefits being offered in different provinces (for example, a self-isolation support programme in Saskatchewan which offers $450 weekly for two weeks) to those forced to self-isolate who are not covered by the federal Employment Insurance programme. Benefits by province listed here.
Tax deferment:The due date for filing individual tax returns has been extended to 1st June 2020. Taxpayers will have until 1st September 2020 to pay any 2019 income tax amounts owed. More information on new tax filing and payment deadlines can be found here.
10% temporary wage subsidy for employers: If you have employees, the government announced a temporary wage subsidy for employers for a period of three months. Eligible employers who pay salary, wages, or taxable benefits to employees, between 18th March 2020 and 19th June 2020, can reduce payroll remittances of federal, provincial, or territorial income tax by the amount of the subsidy. This measure is only applicable to remittances made to the Canada Revenue Agency (CRA). More information here.
The Canada Emergency Wage Subsidy (CEWS): This programme provides a 75% wage subsidy to eligible employers during the period of 15th March to 6th June. Prime Minister Justin Trudeau recently announced the parameters to qualify for the temporary wage subsidy programme are being eased. The Government had previously stated that businesses would have to demonstrate a 30% drop in revenues in comparison to this time last year. However, businesses can now compare their decrease in revenue to the average of what they made in January and February of this year. For the month of March, businesses only need to demonstrate a 15% decline, and for the months of April and May they will need to show a 30% decrease in revenues again. More information here.
Note: On 27th April the CEWS portal opened and can be accessed through the Canada Revenue Agency’s (CRA) My Business Account or through a separate online application form. The CRA has introduced additional guidance and tools, including a CEWS application guide available here.
Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA): On 24th April the Ontario government, together with the Federal government, announced the Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA). This new programme will provide rent relief for small businesses and not-for-profit/charitable organisations. This programme can result in a 75% reduction in rent for the months of April, May and June 2020. The aid is expected to be provided as of 15th May and will be administered by the Canada Mortgage and Housing Corporation. Landlords should be contacted in view of accessing this assistance.
Looking for information on COVID-19 assistance programmes and resources available in a different country? You can also learn more about assistance programmes and resources in the United Kingdom, France, Germany, and the United States.
Words by Etsy Staff
