Wage subsidies, loans, and benefits
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Good to Know
- Several people report challenges getting a CRA My Business Account set up. We have set up a help desk for this at CRAhelp@united-church.ca. In addition, see the Access to CRA Accounts webinar.
- All federal emergency subsidy programs are based on and calculated from payroll records, specifically employer T4 filings and the 2020 T4 Summary on file.
- In addition, most programs will be administered online, so it will be important to have established online registrations with both the government and your bank. Alternatively, online portals will be available.
Approvals Needed to Seek Financial Relief
Check with your region about online meetings and e-mail voting to expedite these processes during the pandemic:
- Canada Emergency Wage Subsidy applications are a local matter. However, it is strongly recommended that the treasurer not act alone but ensure the board is onside.
- Any loan from government or the broader church requires both local and region approval. Most regions have implemented or are implementing an expedited approval process in support of congregations and other eligible ministries.
- CRA guidelines were amended in June 2020, and some congregations ARE eligible for the Canada Emergency Business Account (CEBA); see the eligibility guidelines. The Canada Emergency Business Account program has been extended and will end on June 30, 2021, so you must complete your CEBA application by this date.
Administrative Steps to Take
It appears many of the programs will require or at least significantly benefit from having online capability:
- ADP Internet report access
- CRA MY Account for Business/Charities
- Online banking capability linked to your operating bank account
- Online registry with Service Canada
- Obtain requisite governance approvals as established for you congregation and your region.
- It will be important to have 2020 month-by-month financial data at hand as well as your 2020 T4 Payroll Summary as filed with the CRA.
Who Is Eligible, and for What?
- The Canada Emergency Wage Subsidy applies to nonprofits and charities that have payroll expenses (defined as issuing T4 and filing a T4 summary) and are experiencing financial distress.
- The Canada Emergency Wage Subsidy must be applied for.
- Some congregations ARE eligible for CEBA. See the new eligibility guidelines. Camps and certain ministries that have a payroll of between $20,000 and $1.5 million may also be eligible.
- Within our church structures, it is the entity that manages and reports payroll that must apply. In certain multi-point pastoral charge situations, it will be the pastoral charge even if that is not where charitable status is held.
10 percent wage subsidy
Churches are considered small business employers and charities by governments. Accordingly, all charities and nonprofits were eligible for a 10 percent immediate subsidy processed against regular payroll (March 18-June 19, 2020).
More information: Frequently asked questions – Temporary wage subsidy for employers
Canada Emergency Wage Subsidy
- There is no limit on the overall subsidy amount an employer can claim.
- Employers must make their best efforts to top up employees’ salaries to bring them to pre-crisis levels.
More information: Canada Emergency Wage Subsidy
Canada Emergency Business Account (CEBA)
Some congregations ARE eligible for the CEBA loan program. See the new eligibility guidelines. Camps and certain ministries that have a payroll of between $20,000 and $1.5 million may also be eligible. All financial institutions offer the same thing through an expedited, online process. The Canada Emergency Business Account program has been extended and will end on June 30, 2021, so you must complete your CEBA application by this date.
- CEBA provides interest-free loans of up to $60,000 to eligible small businesses and non-profits.
- A third of the value of these loans (up to $20,000) is forgivable if the balance is repaid on or before December 31, 2022.
- Congregations that meet the other eligibility criteria, notably generating revenue from rentals or the sale of goods and services as reported on their annual charitable return, are eligible.
To apply for CEBA:
- Eligible ministries will be ones with a payroll number.
- Churches can apply online. Go to your financial institution's website and search "CEBA."
For More Info
Contact your regional council or
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