The disruption from this pandemic has exhausted business owners emotionally and financially, even our valued physicians. Chasing income means you might have lost focus on accounting, have lost accounting staff and need to move to online accounting firm services or maybe, as a physician, you are just looking for some financial guidance. Here are some reminders of the economic help that is out there for the medical industry:
Support for employers
Canada Emergency Wage Subsidy (CEWS) – This subsidy applies if the pandemic caused your revenue to drop. It will fund 75% of your practice’s wage bill, up to 12 weeks, capped at $847 per week. It is paid retroactively to March 15, 2020. This subsidy can enable you to re-hire workers.
- Businesses, not-for-profit organizations, and charities that lost a 30% reduction in turnover due to COVID-19 qualify.
- Organizations that do not qualify for the Canada Emergency Wage Subsidy should check if they qualify for the wage subsidy of 10% of remuneration.
Canadian Emergency Business Account (CEBA) – A loan program providing interest-free loans up to $40,000 to small businesses and not-for-profits. It is for operating costs that cannot be avoided or deferred whilst you safely navigate periods of shutdown.
- Qualification for it requires proof of $50,000 to $1 million total payroll paid in 2019.
- Alternatively, Loan Guarantees for SMME were worked on by the EDC with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million.
- A Co-Lending Program for SMME was worked on by BDC with financial institutions to cover operational cash flow requirements, with incremental credit amounts of up to $6.25 million.
Canada Emergency Rent Subsidy (CERS) – This was established to address commercial rent or property expenses partially if your revenue is impacted due to the pandemic.
This subsidy doesn’t need landlords’ involvement and represents a $60,000 line of credit for qualifying businesses.
Insurance – At the beginning of each year, review your personal insurance to ensure all categories of assets are secure. Your insurance needs will change with your age, income and asset portfolio.
Disability insurance is a group benefit or for individuals, replacing a chosen portion of income for a limited time. Employer-sponsored disability insurance ends when employment ends.
Disability underwriters are referring to 2019 income levels to ascertain appropriate coverage for pandemic losses. Always ensure benefit levels are realistic, i.e. reflecting normal levels of income.
Support For Individuals
Canada Recovery Benefit (CRB) – This supplies $500 per week if you are not eligible for Employment Insurance (EI), for 26 weeks if you lost work or lost 50% of income due to COVID-19.
Canada Recovery Sickness Benefit (CRSB) – This supplies $500 per week for 2 weeks if you are sick, are self-isolating due to COVID-19, or have co-morbidities for COVID-19.
Canada Recovery Caregiving Benefit (CRCB) – This supplies $500 per week, for 26 weeks per household, if caring for your child, <12 years old, or an adult (needing supervised care) keeps you from working.
There are many ways to keep your medical practice afloat if you are aware of the multiple benefits and have structured contingency planning.
Let us help you navigate 2021 and bring some stability after a tough 2020. Give us a call today and let us get you the best solution possible as an online accounting firm with years of experience assisting physicians with accounting and financial guidance.