Updated January 18, 2022
The COVID-19 pandemic continues to blanket the world as we start 2022. Here are the latest government financial support programs available for Ontario businesses and Canadian individuals and businesses.
For Businesses
Ontario business supports include a new grant fund, rebate program, and an interest and penalty free period to make payments for provincially administered taxes.
Ontario COVID-19 Small Business Relief Grant
Eligible businesses that were subjected to close due to the Ontario government reinstating to modified Step Two Roadmap to Reopen can receive a one-time grant in the amount of $10,000.
To be eligible for the grant, businesses must:
For more information or to see the list of eligible businesses, go to the Ontario COVID-19 Small Business Relief Grant page.
Ontario Business Costs Rebate Program
Eligible businesses such as smaller retail stores required to reduce capacity by 50% can receive rebate payments equal to 50% of property and energy costs. Eligible businesses such as restaurants and gyms required to close indoor activities can receive rebate payments equal to 100%. Rebates will be made retroactive to December 19, 2021.
A complete list of eligible businesses and the online application can be found here. Businesses must submit property tax and energy bills when applying.
Delay in Provincial Tax Payments
Ontario will also be providing a six-month interest and penalty-free period to make payments on most provincially administrative taxes for businesses subject to capacity restrictions.
Businesses affected with capacity restrictions will have the option to delay payments starting January 1, 2022 ending July 1, 2022 for the following provincially administered taxes:
- Employer Health Tax
- Beer, Wine & Spirits Taxes
- Tobacco Tax
- Insurance Premium Tax
- Fuel Tax
- International Fuel Tax Agreement
- Gas Tax
- Retail Sales Tax on Insurance Contracts & Benefit Plans
- Mining Tax
- Race Tracks Tax
Federal Programs
Many Federal support programs have been extended to provide further assistance for those affected by the pandemic into 2022.
For Individuals
Canada Recovery Caregiving Benefit (CRCB)
The CRCB benefit has been extended to May 7, 2022 to a maximum of 44 weeks.
Eligible individuals include those who are employed or self-employed who are unable to work due to having to stay home to take care of children under 12 years of age, or a family member who requires supervised care.
The benefit equates to $500 (before tax) or $450 (after tax) for each one-week period.
Canadian Recovery Sickness Benefit (CRSB)
The CRSB benefit has been extended to May 7, 2022 to a maximum of 6 weeks.
Eligible individuals include those who are employed or self-employed who cannot work as they are ill or have to be isolated due to COVID-19. Individuals with an underlying health condition that makes them more vulnerable to COVID-19 are also eligible.
The benefit equates to $500 (before tax) or $450 (after tax) for each one-week period. Individuals must reapply if their situation continues.
Canada Worker Lockdown Benefit (CWLB)
The CWLB benefit has been extended to May 7, 2022 and is only available in regions directly affected by a public health lockdown due to COVID-19.
The benefit provides temporary income support of $300 (before tax) or $270 (after tax) for each one-week period. Individuals can apply for as many weeks as their region is eligible between October 24, 2021 to May 7, 2022.
For Businesses
Wage and rent subsidy support is available for eligible Canadian businesses. If your business was eligible for the former Canada Emergency Wage Subsidy (CEWS) or Canada Emergency Rent Subsidy (CERS), your business would most likely also qualify for the Tourism and Hospitality Recovery or Hardest-Hit Business Recovery Programs.
Tourism and Hospitality Recovery Program
The Tourism and Hospitality Recovery Program (THRP) provides wage and/or rent subsidies for eligible Canadian business, charity, or non-profit organizations affected by COVID-19. To qualify, business must be part of the tourism, hospitality, arts, entertainment, or recreation sectors OR affected by public health restriction.
The program has been extended to May 7, 2022.
Hardest-Hit Business Recovery Program
The Hardest-Hit Business Recovery Program (HHBRP) provides wage and/or rent subsidies to eligible businesses that don’t qualify for the Tourism and Hospitality Recovery Program.
In order to qualify, businesses must have a CRA payroll account on March 15, 2020 or for rent subsidies only, have a business number with the CRA on September 27, 2020 AND meet the following two conditions:
- Have a 12-month average revenue drop from March 2020 to February 2021 of at least 50% and,
- Have a claim period revenue drop of at least 50%
Businesses can be sole proprietors, corporations (or trusts) that are not exempt from income tax, registered charity, or partnership.
The program has been extended to May 7, 2022.
Canada Recovery Hiring Program
The Canada Recovery Hiring Program (CRHP) provides a subsidy to cover a portion of wages for new employees and to increase existing employees’ wages or hours. For each claim period, a business can claim the higher of the CRHP, or the wage portion of the THRP or HHBRP.
The program has been extended to May 7, 2022.
Should you receive income support from government programs, be sure that you understand how the additional income affects your taxes. We can help you make sense of your taxes. Contact us today to learn more.