Financial Information About COVID-19
Dear Clients,
As we embark into these uncertain times where we have more questions than answers; all of which continuously change with every minute. There have been some new announcements made from PM Justin Trudeau in regards to relief for small businesses and individuals. Although this information is ever-changing our office wanted to create a mini newsletter detailing such programs with their respective links/applications. Please note that this information will likely change and/or evolve as we continue to work together and get through these uncharted waters. However we can do so as a team; working and helping one another.
This is a great link that details the entire economic package for all affected: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html
I strongly recommend reading through this link but also revisiting it often.
Thank you,
Denise Hutchinson
SMALL BUSINESSES
EI - Employees
Quarantine from Covid-19 -> For those who have been quarantined due to Covid-19 can apply for EI coverage and the one-week wait period will be waived. Service Canada is noting to file your application for EI and then call the following number to have the one-week waiting period waived. This number is exclusive to those who are sick and/or quarantined.
Telephone: 1-833-381-2725 (toll-free)Teletypewriter (TTY): 1-800-529-3742EI Coverage for Employees who lost work -> If your employer has closed their business you can file for EI the 'regular' way if you qualify. This process has not changed and is normal.
Here are the links to submit an application and to find further guidance and Q&A's. Please continue to monitor these links for new information. You or your employees are able to apply now, if they qualify. https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html?fbclid=IwAR2s7YUoy11T5XLwRpgMBDdg3vQfPxdhP8sQnbMrM8tnU6nztIgLcmrYipc https://www.canada.ca/en/services/benefits/ei/ei-sickness.html
EI - Similar coverage for those who do not qualify for EI
Emergency Care Benefit
"The Emergency Care Benefit provides up to $900 every two weeks for up to 15 weeks, to those affected by COVID-19. It's intended for those who don't qualify for EI, can't go to work and don't have paid sick leave" (CBC, 2020). source: https://www.cbc.ca/news/canada/apply-emergency-benefits-1.5501977 This program is not currently open to application; April is the time frame in which applicants can apply online through the CRA website. There will be a toll-free number exclusive to this service but it has yet to be shared. Further information on the exact date and application process is still not fully detailed but, as the program is developed/finalized, it will be, in the coming weeks. Links to follow: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html
Payroll Assistance
"To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. 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." (Canada.gov, 2020) Source link: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Businesses
Relief on Corporate Tax Payments Due
"The Canada Revenue Agency will allow all businesses 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 instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period" (Canada.gov, 2020) Link: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Businesses
INDIVIDUALS
Child Tax Credit
Planned to be activated by May for the May payment. This is for only the benefit period of 2019-2020. If you currently received this credit the boost will be automatic. No application process is needed. The boost available is per child in the amount of $300/month. Source Link: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Canadians
GST/HST Credit
Planned to be activated by early May. If you currently received this credit the boost will be automatic. No application process is needed. "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 benefiting from this measure will be close to $400 for single individuals and close to $600 for couples" (Canada.gov, 2020) Source Link:https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Canadians
T1 - Income Tax Return
New due date of June 1, 2020 for filing. New due date of August 31, 2020 for payment if the balance is owing. Please use this guide as it is just that; a guide. This is in no way to replace government information/website or official announcements. We simply wanted to offer a conclusive overview of the announcements and to offer links on where you can go to stay up to date. Please do not rely solely on this newsletter and in doing so you are at your own liability.
