Dear Partner Florist,

Teleflora recognizes that these are unprecedented times for our partner florists as small business owners. Recently, we have heard directly from many of you and we understand that your businesses are facing significant cash flow challenges. As you navigate the impact of COVID-19 on your business, I encourage you to consider several key programs that can provide economic relief to support your businesses.

GOVERNMENT OF CANADA – COVID-19 ECONOMIC RESPONSE PLAN
The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as the result of the COVID-19 outbreak.

Wage Subsidies

Temporary Wage Subsidy for Employers (click here for more information)
The Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA).

- The subsidy is equal to 10% of the remuneration paid from March 18, 2020 to June 19, 2020, up to $1,375 each eligible and to a maximum of $25,000 total per employer

- The subsidy must be calculated manually for whomever is responsible for making payroll remittances. The CRA will not automatically calculate the subsidy. Click here for more information on how to calculate the subsidy

- You do not need to apply for the subsidy. Employees should continue to deduct income tax, Canada Pension Plan contributions, and Employment Insurance premiums from salary, wages, bonuses, or other remuneration paid to employees. The subsidy is calculated when those amounts are remitted to the CRA

Small Business Wage Subsidies (click here for more information)
The Government of Canada announced a wage subsidy of up to 75% for qualifying businesses, for up to three months, retroactive to March 15, 2020. This will help businesses to retain employees and return them to payroll. More details on implementation are coming, so I encourage you to check the Government of Canada website frequently.

Work-Sharing Program (click here to apply)
The Work-Sharing program is an adjustment program designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work week while their employer recovers. Work-Sharing is a three-party agreement involving employers, employees, and Service Canada.

- Employees on Work-Sharing must agree to a reduced schedule of work and to share the available work over a specified period of time

- The maximum duration for a Work-Sharing agreement is 38 weeks

Business Credit Availability Program (click here for more information)
Through this program, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will provide more than $65 billion in direct lending and other types of financial support at market rates to businesses with viable business models whose access to financing would otherwise be restricted. Businesses seeking support should contact the financial institutions with whom they have a pre-existing relationship to begin the application process.

INCOME TAX DEFERRAL
The Canadian Revenue Agency is allowing all businesses to defer, until after September 1, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. Flexible payments arrangements may be made with the Canada Revenue Agency if businesses are facing difficulties related to covid-19. All audits are temporarily suspended for a vast majority of businesses.

If you have questions or if you are experiencing difficulty completing the applications, please contact Government of Canada customer service at 800-622-6232. You may also call Teleflora at 800-421-2815 (select option 4) and we can help you research your questions, as we are pleased to provide additional florist customer service support to help you during this challenging time.

We will get through this together. Stay safe, healthy, and strong.

Very sincerely,
Jeff Bennett

Please be advised that the information provided in this communication is intended to help you seek timely and valuable assistance. Please understand that Teleflora is not providing legal or tax advice. Teleflora strongly encourages you to discuss any of the above with your lawyer or financial advisor.