Small Business Layoff Decision Tree:

OPTION A - 75% Wage Subsidy

Step 1 - You need to have 30% decline in monthly gross revenues. Example March 2019 monthly sales vs March 2020 monthly sales. Remember Revenue=invoices; does not matter if you could collect it or not.

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Step 2 - apply in April for your March wage subsidy (assuming you paid out wages)

Step 3 - Wait until mid to late May to receive your March wage subsidy (if approved)

Step 4 - reapply in May for your April wage subsidy

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Step 5 - wait for the auditor to call you and see if you moved income from one month to the other in order to qualify

Step 6 - make sure you are paying your employees during this time with no cash support

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Step 7 - apply for the $40,000 loan - but only if you had >$50,000 of payroll expenses in 2019

Step 8 - if you paid yourself dividends instead of wages you don't get the CERB ($2,000)

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Step 9 - pay yourself a $5,000 wage to try and qualify for the CERB because you were self-employed, but had to close the doors completely and you have mouths to feed

Step 10 - realize you get 10% of wage back be told you are "gaming the system" and get severely penalized.

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OPTION B: Lay off staff

... and that's how they are helping small business

#CdnTax #cdnpoli #COVID19Canada #COVIDCanada #smallbusiness #layoffs

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For my solution idea for government... see my article on Linkedin here: https://www.linkedin.com/pulse/keep-simple-subsidy-cory-g-litzenberger-cpa-cma-cfp-c-mgr /7