**The following information has been compiled from various sources for the purposes of providing clarity to the Business clients of Airikka Passmore & Associates Ltd. as the current status of Federal and Provincial Governments is that of an emergency, we expect that there will be many revisions and further details as they continue to monitor the country.
We will do our best to provide accurate and current information that pertains to our business community as we receive it.
As of March 18th: Prime Minister Justin Trudeau announced $82B in aid for families and businesses, including $27 billion in direct support for Canadian workers and businesses.
Tax Deferral Payments
Alongside the extension made on the personal tax deadline to June 1st with deferral of taxes owed personally to August 31st, the Federal Government announced that they will allow business to defer income tax amounts until after Aug 31 and no interest or penalties will accumulate. This only referenced “Income Tax” so it is assumed that HST and Payroll liability payments will still remain payable as per your filing requirements.
To avoid layoffs, the government proposed a measure that would provide businesses struggling with the economic impact of COVID-19 with a subsidy equal to 10 per cent of employee wages, up to $1,375 per employee and $25,000 per employer.
Increase Tax Credits
They announced that there will also be an increase to the tax credits available to small, medium and large businesses but there have been no details provided as to what these would be and we suspect we will have to wait for the economic report at the end of the month which will be released in the absence of the Annual Budget.
The Emergency Care Benefit
(a) Will be administered through the CRA and will provide up to $900 every two weeks, for up to 15 weeks to help workers including the self-employed who are quarantined or sick with COVID-19 but do not qualify for EI Benefits.
(b) Including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits.
(c) 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.
(d) 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.
(e) Those who are sick themselves, as well as
(f) Those who are staying home to look after others who are sick or children who are not in school.
Note: The qualifications for this credit must be directly related to COVID-19 pandemic through exposure or related to the school closures. To be provided to the independent contractor.
The Emergency Support Benefit
This will offer support payments of an undisclosed amount to unemployed workers who are not eligible for EI. This includes Self Employed contractors, individuals recently returning from Maternity, Parental or Sick leave without having the previous number of hours banked to qualify for EI support previously. This can also be applied for when trying to mitigate further spreading of the COVID-19 and closing offices, sports teams and social events to which the ineligible worker relies on as a source of income.
**Update on application process for both Emergency Support Benefit and Emergency Care Benefit Programs- A medical note is not required to apply. The applicants need to attest that they meet the eligibility requirements to obtain bi-weekly payments of up to $900 biweekly. The wording of the attestation has not yet been released but it is expected to include a statement that the individual has had recent income. The claim made through an individual’s online account at the Canada Revenue Agency, meaning it could be verified. Once approved, money would be transferred quickly through Direct deposit. It is expected that individuals can begin applying sometime in April **
Business Credit Availability Program
The Government will extend $10B in additional support to businesses experiencing cash flow challenges through the Business Development Bank of Canada and Export Development Canada. Applications for amounts under $100K can be made online for various lending products such as Small Business Loans, Working Capital Loans and Purchase Order Financing.