Our phones have been ringing all day with clients wanting to know what if any relief there is in sight for them as business owners during COVID-19. Today Justin Trudeau announced an additional $82Billion to support Canadians and businesses. This article breaks down the various programs and initiatives and how they will affect you or your business and how you can access them.
Sick Leave
If your employees need to self quarantine because they are sick and you don’t offer sick days, the waiting period for sick EI has been waived. Make sure you indicate COVID-19 in the comments section.
Emergency Care Benefits
This benefit is for business owners, self employed, contractors artists, participants n the gig-economy who can’t work due to self-quarantine, sick family members or lack of daycare. This benefit will pay out similarly to EI. Open your My CRA account now if you don’t already have one – this is how you will apply for this benefit.
This benefit is available as of April 1st and will not require a doctor’s note – rather you will just need to fill out a citation.
Wage Subsidy
To encourage employers to find ways to keep employees employed, they have introduced a wage subsidy. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
GST Rebate
For low- and modest-income families, who may require additional help with their finances, the Government is proposing to provide a one-time special payment by early May 2020 through the Goods and Services Tax credit (GSTC). This will double the maximum annual GSTC payment amounts for the 2019-20 benefit year. The average boost to income for those benefitting from this measure will be close to $400 for single individuals and close to $600 for couples.
Canada Child Benefit
The Government is proposing to increase the maximum annual Canada Child Benefit (CCB) payment amounts, only for the 2019-20 benefit year, by $300 per child. Families will receive an extra $300 per child as part of their May payment.
Tax Filing and Payment Deadlines moved
For individuals, the filing date has been moved to June 1st and payment will not be expected until August 31st. However, families who rely on their Child Tax Benefit and or GST rebates are encouraged to file on time to ensure their benefits are calculated in a timely fashion.
Businesses will be allowed to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
Student Loans
There will be a 6 month moratorium on making student loan payments.
Seniors finances
To help seniors protect their investment, the government is proposing to reduce the required amount to pull from retirement savings by 25% therefore allowing seniors to leave their money in the market until it rebounds.
For a complete list of all initiatives announced check out this page.
We know that it’s a stressful time right now; like us you are likely trying to figure out how to support your team, yourself, your business and what’s happening tomorrow let alone a month from now. If there’s anything we can do to support you; even just provide some information please reach out.