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COVID-19 Relief Measures Bonny Koabel CPA, CGA, AKR Consulting
As a result of COVID-19 the Government has introduced financial measures to compensate businesses. While most companies are aware of the 75% Wage Subsidy and the $2,000 monthly Canadian Emergency Relief Benefit we will take a further look into additional COVID Relief Measures.
$40,000 Canadian Emergency Business Account (CEBA) CEBA is available through all major banks and provides interest free loans of $40,000 until December 31, 2021. After introducing the program the Government increased the scope of companies that could be funded. Currently in order to be eligible a Business must have 2019 T4 Salaries of between $20,000 and $1,500,000. Businesses that are able to repay the loan in full by December 31, 2022 will receive an incentive of $10,000 in loan forgiveness.
Employer Health Tax Deferrals The Provincial Government is providing assistance with Employer Health Taxes. Beginning April 1, 2020 and for a period of five months, up until August 31, 2020, the Province will not apply any penalties or interest on any late-filed returns or incomplete or late tax payments. Therefore EHT payments from April, May, June and July will not be due until August 31, 2020.
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AKR CONSULTING CANADA INC.
151 Courtneypark Drive West, Suite #100 Mississauga, ON L5W 0A5 T: (905) 678-6368 | F: (905) 677-1700 info@akrconsulting.com www.akrconsulting.com In addition Employers with annual payrolls of up to $5 million will be exempt from EHT on the first $1 million of total Ontario T4 Payroll 2020. This increased EHT tax exemption limit will increase company savings from $9,945 to $19,500 in 2020. The EHT exemption limit will return to $490,000 on January 1, 2021.
Workplace Safety and Insurance Board (WSIB) Businesses covered by the WSIB’s workplace insurance are automatically eligible for the following relief package: • Schedule 1 employers with premiums owed to the WSIB will be allowed to defer reporting and payments until
August 31, 2020. • The deferral will also apply to Schedule 2 businesses that pay WSIB for the cost related to their workplace injury and illness claims.
In addition, no interest will be accrued on outstanding premium payments and no penalties will be charged during the six-month deferral period.
10% Wage Subsidy All employees and businesses that do not qualify for the 75% Wage Subsidy may qualify for the 10% Wage Subsidy. The 10% Wage Subsidy covers the period of March 18, 2020 to June 19, 2020. Businesses that do not experience a drop in sales of 15% in March or 30% in April, May, and June may qualify for this subsidy for that specific month. Also any Employees who do not qualify for the 75% Wage Subsidy because they began employment with their current Employer after March 18th, 2020 may qualify for the 10% Wage Subsidy.
Eligible Businesses
In order for a Business to be eligible for the 10% Wage Subsidy they must have a business limit for their last taxation year that ended prior to March 18, 2020, greater than nil. Companies will need to consult your Accountant and see your T2 Corporate Tax Return to confirm the Business Limit amount.
Eligible Employees
The 10% Wage Subsidy applies to all T4 employees that are paid salaries, wages, bonuses, or other remuneration. The Wage Subsidy does not apply to workers from Employment Agencies. If an Employee goes from Employment Agency payroll to Company payroll the Employee will then qualify for the Wage Subsidy.
How much is the subsidy?
The Wage Subsidy is 10% of the wages paid to Employees from March 18, 2020 to June 19, 2020. Companies may claim up to a $1,375 Wage Subsidy for each eligible employee to a maximum of $25,000 total per employer.
In addition Associated CCPCs will not be required to share the maximum subsidy of $25,000 per employer.
How do I calculate the subsidy?
The Wage Subsidy is be calculated manually and deducted from a company’s Payroll Tax Remittance that is made at least one a month to the Federal Government. Payroll Tax Remittances are made up of CPP, EI and Tax Payments. The Wage Subsidy can only be deducted from the Tax portion of the Payroll Tax Remittance.
If your company has not claimed their 10% Wage Subsidy they can do so any time. Just remember to keep you calculations in case there is a Government audit in the future.
Example
Company A has 5 employees with monthly salaries of $4,100 for a total monthly payroll of $20,500.The wage subsidy for the month is 10% of $20,500, or $2,050. In April, there are 7 employees with monthly salaries of $4,100 for a total monthly payroll of $28,700. The wage subsidy is 10% of $28,700, or $2,870. In May 7 there are 5 employees with monthly salaries of $4,100 for a total monthly payroll of $28,700. The wage subsidy is 10% of $28,700, or $2,870. For the three-month period total payroll is $77,900 and 10% is $7,790.
Since this amount is below the maximum allowable subsidy amount of $9,625 ($1,375 x 7 employees), the total wage subsidy for the three-month period will be $7,790.
Bonny Koabel CPA, CGA is President of AKR Consulting Canada, a Mississauga firm specializing in Government Grants, Subsidies, Tax Credits, Refunds and Rebates since 2003.
AKR Consulting Canada Inc. 151 Courtneypark Drive West, Suite 100 Mississauga ON L5W 0A5 (905) 678-6368 info@akrconsulting.com akrconsulting.com
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Cleaning for COVID-19 Adam Brock, President, The Food Safety Alliance
To say we’re living in uncertain times may be the biggest understatement you’ve read today. Because of COVID-19, we’ve been forced to turn on a dime and rethink our processes and procedures, while quickly implementing new policies without much, if any experience to draw upon. FUD (fear, uncertainty, and doubt) sets in and can make us question the decisions we’re making about ensuring the safety of our employees, customers, and products.
In the food industry, we have long been used to monitoring and testing production facilities to confirm sanitization and pathogen standards are being met. But, as we find ourselves in uncharted waters, relying on sometimes daily updates to guide us on how to operate safely during this pandemic, you’re probably finding yourself overwhelmed with (often conflicting) information that more than occasionally leaves you unsure what to believe and how to act.
To add to the confusion, the current crisis has brought with it an avalanche of new businesses making claims in the fight against COVID-19. Unfortunately, there’s not the luxury of time we’re used to having for vetting new products and services as we should.
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In this article, I’d like to help you make at least somewhat more informed decisions about what is appropriate and necessary for you and your company to operate safely during the COVID-19 pandemic.
Sanitizers vs. Disinfectants A sanitizer is an agent that reduces the number of diseasecausing (pathogenic) bacteria on an inanimate food contact surface to safe levels as judged by public health requirements. A sanitizer is generally defined as a chemical that kills 99.999% of specific test bacteria in a determined amount of time.
Unlike disinfectants, sanitizers cannot contain artificial scents as they are applied to food contact surfaces and can’t leave a residual trace that might inadvertently add unwanted flavor to food.
A disinfectant is an agent that frees an inanimate body (generally hard, nonporous surfaces) from infection by destroying microorganisms. Disinfectants kill 100% of certain microorganisms, such as bacteria, fungi, and viruses as listed on the label, and are not to be used on people or animals, only inanimate surfaces. Because they do not kill all microorganisms, in particular, bacterial spores, they should not be confused with a sterilant.
If a virus is not listed on the label, or the label only makes a general claim against viruses, it may not be effective for your required use. A disinfectant can claim to kill viruses, but unless specific viruses are listed on the label, it may not have been tested, or more importantly, be effective against the virus you want to kill. Be sure to ask for specific, verifiable data.
Since disinfectants are not applied to food surfaces, they often have lemon, floral, or other scents added to leave a fresh fragrance after the disinfection. However, if a product is identified as being both a disinfectant and a sanitizer, it must be unscented.
Application The most common method of application for both sanitizers and disinfectants is to “flood” the environment with liquid using a spray applicator. The building and equipment in manufacturing facilities are designed to withstand this type of application. However, because of COVID-19, other facilities such as commercial offices and stores, environments that haven’t been designed for this kind of process, are now in need of disinfecting. Instead of flooding these facilities, an application known as fogging is used.
Although it’s not uncommon to use fogging as an applicator in the food industry, it’s in far greater demand today because of the impact COVID-19 is having on other sectors. As mentioned above, new businesses have come online to meet this rising demand. Unfortunately, this has introduced a lot of confusion to the market as people with no prior experience are claiming to make workspaces safe from COVID-19 with their fogging service. Here are some things you want to know before hiring a company to fog your facilities: 1. How long have they been doing this kind of work? 2. Ask for references. 3. Ask to see proof of efficacy in the form of test reports, etc. that the product being used is approved for the application you need and kills the virus you want killed. 4. What is their process for post-application testing to ensure no viruses are present? 5. Ask how their employees are trained for the job. 6. How long until someone can enter the environment again?
Also, since not all foggers are created equally, it’s important to know if the equipment being used is appropriate for needs. Handheld foggers are only as good as the operator. To ensure a proper disinfection has been performed, all surfaces must be exposed to the fog for the amount of time stated in the instructions of the product being used. For additional peace of mind, if you’re using someone new, you may even want to observe the application in process. Watch that all surfaces are cleaned prior to application. During the application process, all surfaces must be exposed to the product for the full period of time stated in the product directions. As always, the 5x4 cleaning theory is still the foundation of a solid sanitation program both inside and outside a food plant. Be sure to follow all procedures as written, and abide by the concentration restrictions.
This is a serious job. If the candidate supplier can’t confidently respond to any of these questions and conditions, look for someone else.
From FSA to you and your families, we wish you the best. Stay safe.
Food Safety Alliance (FSA) 1020 Hargrieve Road London, ON N6E 1P5 (519) 601-4444 abrock@thefsa.ca thefsa.ca
