What support is the Government providing for Workers and Parents during the COVID-19 crisis?
For Canadians without paid sick leave (or similar workplace accommodation) who are sick, quarantined or forced to say home to care for children, the Government is 1) Waiving the one-week waiting period for those individuals in imposed quarantine that claim Employment insurance (EI) sickness benefits and 2) Waiving the requirement to provide a medical certificate to access EI sickness benefits.
What is the Emergency Care Benefit for Coronavirus?
It provides up to $900 bi-weekly, for up to 15 weeks. This flat-payment Benefit would be administered through the Canada Revenue Agency (CRA) and provide income support to 1) Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits; 2) Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not quality for EI sickness benefits; and 3) Parents with children who require care or supervision due to school closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not.
Whether a COVID-19 loss will be covered by insurance will depend on the terms and conditions of the applicable policy, applied to the specific circumstances of the loss.
How do I apply for the Coronavirus Emergency Care Benefit?
Application for the Benefit will be available in April 2020 and require Canadians to attest that they meet the eligibility requirements. They will need to re-attest every two weeks to reconfirm their eligibility. You can apply for the Benefit by 1) Accessing it on their CRA MyAccount secure portal; 2) accessing it from their secure My Service Canada Account; or 3) calling a toll-free number equipped with an automated application process.
What is the one-time special GSTC payment?
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 2019-2020 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.
Will there be an increase to Canada Child Benefit (CCB) during the Coronavirus pandemic?
The Government is also proposing to increase the maximum annual Canada Child Benefit (CCB) payment amounts, only for the 2019-2020 benefit year, by $300 per child. The overall increase for families receiving CCB will be approximately $550 on average; these families will receive an extra $300 per child as part of their May payment.
Is there any relief for student loans during the COVID-19 pandemic?
The government will be placing a six-month interest-free moratorium on the repayment of Canada Student Loans for all individuals currently in the process of repaying these loans.
Is there any relief for withdrawal from registered accounts because of the Coronavirus?
The government will be reducing required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020. Similar rules would apply to individuals receiving variable benefit payments under a defend contribution Registered Pension Plan.
Are there any extension provided to filing deadlines due to COVID-19?
For individuals (other than trusts), the return fling due date will be deferred until June 1, 2020.
For trusts having a taxation year ending on December 31, 2019, the return fling due date will be deferred until May 1, 2020.
Is there any Interest/Penalty relief for Individual tax balances?
The CRA will allow all taxpayers 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.
Are there any measures for tax preparers and accountants?
Effective immediately, the CRA will recognize electronic signatures as having met the signature requirements of the Income Tax Act. This provision applies to authorization forms T183 or T183CORP.
Is there any relief with regard to Mortgages?
Canada’s large banks have confirmed that support will include up to a 6- month payment deferral for mortgages, and the opportunity for relief on other credit products, on a case-by-case basis.
The Canada Mortgage and Housing Corporation (CMHC) and other mortgage insurers offer help, such as payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.
The Government, through CMHC, is providing increased flexibility for homeowners to defer mortgage payments on homeowner CMHC-insured mortgage loans. CMHC will permit lenders to allow payment deferral beginning immediately.
Is there any support/relief for small businesses?
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. 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.
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.
The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For most businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
