Employers must keep vigilant financial records: Legal manager at HR firm
As the federal government temporarily expanded the eligibility of several support programs through Bill C-2 – which received Royal Assent last month – some small business owners are finding silver linings amid closures and lost revenues. Some employers may be eligible for a subsidy to cover part of the wages paid to employees to allow them to re-hire workers and prevent further job losses.
These programs offer support to employers who are experiencing a drop in revenue during ongoing pandemic-related closures.
The temporary expansion of the ‘Local Lockdown Program’ is one of the more significant changes that employers at small businesses can leverage to their advantage according to Patrick Stepanian, legal manager at HR consulting firm Peninsula Canada. The program offers support to businesses under temporary local lockdowns and public health restrictions up to the maximum amount available through the wage and rent subsidy programs. This also now includes employers subject to capacity-limiting restrictions of 50 per cent or more.
In addition, the government has temporarily lowered the current-month revenue loss threshold from 40 per cent to 25 per cent. These temporary changes are currently in effect until February 12, 2022.
It is critical for small business owners and their in-house counsel to keep vigiant records when making use of such programs, Stepanian advises.
“All of these programs are essentially structured around showing revenue loss or showing that you’re affected by public health restrictions, so it’s important to make sure you’ve got the records that support your application and that you have these records available if the CRA ever comes knocking,” says Stepanian.
Business owners should also be careful about the information they put into application forms, ensuring it is accurate and supported by financial records, he adds.
Other programs impacted by the temporary amendments to government support programs include the ‘Tourism and Hospitality Recovery Program’ which provides wage and rent subsidy support to hotels, tour operators, travel agencies and restaurants with a subsidy rate of up to 75 per cent.
In addition, the ‘Hardest-Hit Business Recovery Program’ provides wage and rent subsidies to other businesses that have faced deep losses, with a subsidy rate of up to 50 per cent.
Stepanian notes that some employer support programs have ended; namely Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy.
