COVID-19 Economic Response Plan
The Government of Canada recently announced fiscal measures to help Canadians during this global pandemic period. This newsletter summarizes some of the key measures put in place to combat the effects of the pandemic on our everyday lives as we once knew it.
Support For Individuals and Families
- Increasing the Canada Child Benefit (CCB)
Canada Revenue Agency (CRA) will pay an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This benefit will be delivered as part of the CCB benefit in May 2020. YOU DO NOT NEED TO APPLY if you already receive CCB. It will be paid automatically.
- Special Goods and Services Tax Credit Payment
A one-time GST tax credit of $400 for single individuals and close to $600 for couples. will be paid in May 2020 for low and modest-income families. YOU DO NOT NEED TO APPLY for the GST credit, it will be automatically paid to you if you qualify.
- The New Canada Emergency Response Benefit
This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit. The Canada Emergency Response benefit will pay $2,000 a month for up to 4 months to:
- workers who must stop working due to COVID-19 and do not have access to paid leave or other income support.
- workers who are sick, quarantined or taking care of someone who is sick with COVID-19.
- working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures.
- workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work.
- wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.
The Canada Emergency Response Benefit will be accessible through a secure web portal starting in early April. Applicants will also be able to apply via an automated telephone line or via a toll-free number which will be provided on the CRA website.
- Tax Return Due Date Extension
The personal income tax filing due date has been extended to June 1, 2020. Payment of any income tax balances due, or installments, has been deferred until after August 31, 2020, without incurring interest or penalties. Those who are expecting refunds or benefits such as Canada child benefit should file as early as possible.
Support For Businesses
- Payroll Subsidies for Canadian Businesses
The government is providing eligible small employers with a temporary wage subsidy for a period of 3 months which is equal to 10% of the remuneration paid during the 3 months period, up to a maximum 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.
- Income Tax Payment Extension
Businesses are allowed to defer the payment of income tax amounts until after Augst 31, 2020. The amounts must become owing after March 18, 2020, and before September 2020 to be eligible for deferral. No interests or penalties will accumulate on these amounts during this period. No comments were made about changing the filling and payment due dates for payroll, HST and other non-income tax items.
- CRA Audit Activity
The CRA will not contact any small or medium-sized business to initiate any post-assessment GST/HST or income tax audits for the next four weeks.