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Published : Apr 9, 2020

Canada's COVID-19 Economic Response

The Government of Canada has recently instituted programs to assist Canadian businesses, individuals and families who have had a financial impact from the current COVID 19 pandemic. These programs summarized below. Contact the professionals at Copetti & Co . if we can answer any questions or help you understand eligibility and how to get the most of this program.

 

 

Support for Individuals

 

Individuals and families

 

  • Increasing the Canada Child Benefit an extra $300 per child
  • Special Goods and Services Tax credit payment additional benefit will be close to $400 for single individuals and close to $600 for couples. There is no need to apply for this payment. If you are eligible, you will get it automatically.
  • Extra time to file income tax returns. The filing due date for 2019 income tax returns for individuals has been deferred until June 1, 2020. Any new income tax balances due, or installments, are also being deferred until after August 31, 2020 without incurring interest or penalties.
  • Mortgage support. Canadian banks have committed to work with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. This includes permitting lenders to defer up to six monthly mortgage payments (interest and principal) for impacted borrowers.

 

People facing unemployment

 

  • Canada Emergency Response Benefit (CERB) — a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19. There are two ways to apply: Online or Over the phone with an automated phone service: (1–800–959–2019 or 1–800–959–2041). Both of these services are available 21 hours a day, 7 days a week. Both services are closed from 3:00 a.m. to 6:00 a.m. (Eastern time) for maintenance.
  • Apply for Employment Insurance. If you have stopped working because of COVID-19, you should apply for the Canada Emergency Response Benefit, whether or not are eligible for Employment Insurance. The Benefit is available for the period from March 15, 2020 to October 3, 2020.

 

People who are sick, quarantined, or in directed self-isolation

 

  • Canada Emergency Response Benefit (CERB)
  • Improved access to Employment Insurance sickness benefits

 

People who are unable to work

 

  • Canada Emergency Response Benefit (CERB)

 

Students and recent graduates

 

  • Suspend repayment and interest on Canada Student Loans and Canada Apprentice Loans

 

Support for businesses

 

Avoiding layoffs and rehiring employees

  • Canada Emergency Wage Subsidy covers 75 per cent of salaries for qualifying businesses, for up to 3 months, retroactive to March 15, 2020.
  • Extending the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19.

 

Reduced and deferred payments

 

  • More time to pay income taxes — to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020.
  • Deferral of Sales Tax Remittance and Customs Duty Payments until June. Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June.

 

Access to credit

 

  • Establishing a Business Credit Availability Program Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program. These programs will roll out in mid-April, and interested businesses should work with their current financial institutions.
  • Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. This program will roll out in mid-April, and interested businesses should work with their current financial institutions.

 

Support for self-employed individuals

 

  • Canada Emergency Response Benefit (CERB)
  • Deferral of Sales Tax Remittance and Customs Duty Payments until June
  • More time to pay income taxes

 

Your Copetti & Co professional can help you understand and select the programs that best suit your needs. Contact us today.

 

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