Search KelownaNow
The federal government has repackaged its original plan for helping Canadians get through the economic crisis caused by the COVID-19 pandemic.
A $2,000 a month payment for up to four months will now be available to workers whose income drops to zero because of the pandemic.
The package is worth $107 billion and will apply to affected workers from March 15 to Oct. 3
“Companies don’t need to separate their employees from their company,” Finance Minister Bill Morneau said.
“They just need to say, ‘We can’t pay you during this time period.’
He added: “And when that happens, there is a direct wage subsidy to people, to employees so that they can actually live their lives. When this is done, they can go back to work for their employers and that we think is critically important.”
Following this update from the government, here is a list of what help is available and for whom (details are limited because the schemes are still being set up):
People who need cash: The Canada Emergency Response Benefit
The federal government will provide a taxable benefit of $2,000 a month for up to four months to:
workers who must stop working due to COVID19 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
Application details will be available through My CRA and My Service Canada in early April, the government said.
Finance Minister Morneau mentioned April 6 as the target date.
Those already receiving EI benefits would receive the new benefit, dubbed the Canada Emergency Response Benefit, if payments end before Oct. 3 and they can’t go back to work due to COVID-19.
Canada Child Benefit (CCB) boost
The federal government is providing an extra $300 per child through the CCB for 2019-20.
That means about $550 more for the average family.
The benefit will be delivered as part of the CCB payment in May.
Those who already receive the Canada Child Benefit do not need to re-apply.
Goods and Services Tax credit payment
The federal government is providing a one-time payment by early May through the GST/HST for lower income families.
They say the average additional benefit will be about $400 for single individuals and near $600 for couples.
It will come through automatically – there is no need to apply.
Tax returns
The deadline for filing individual 2019 taxes has been shifted to June 1, 2020.
The extension does not apply to trusts.
Any new tax balances due, meanwhile, can also now be deferred until after Aug. 31, 2020 without interest or penalty.
Homeless
The Reaching Home scheme has been enhanced to help homeless people during the crisis.
Additional funding of $157.5 million has been promised to deal with shelter overcrowding and the need to purchase new beds.
For more, click here.
Women’s shelters and sexual assault centres
The federal government has pledged up to $50 million to support women and children fleeing violence.
Seniors
The required minimal withdrawals from Registered Retirement Income Funds has been reduced by 25% for 2020.
Students and recent graduates
As of March 30, there will be a six-month interest-free moratorium on the repayment of student loans. There is no need to apply for the pause.
Work-Sharing scheme extension
The federal government is extending the maximum duration of the Work-Sharing program from 38 to 76 weeks.
It is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.
More here.
Wage subsidies
In a move panned as inadequate, the government is offering certain small businesses a temporary wage subsidy equal to 10% of employee pay over three months.
It covers salaries up to a maximum of $1,375 per worker.
Each employer can get up to $25,000 per employee through the scheme.
More here.
Credit
The federal government has established a Business Credit Availability Program (BCAP) to provide more than $10 billion of support, mostly for small and medium-sized businesses, through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
More here.
Farmers
Credit available to farmers has been increased through Farm Credit Canada.
More here.
Income taxes
Businesses are being permitted to defer – until after Aug. 31, 2020 – the payment of any income tax that becomes owing on or after March 18 and before September 2020. The relief would apply to tax balances due, as well as instalments.
No interest or penalties will accumulate.
If you get value from KelownaNow and believe local independent media is important to our community we ask that you please consider subscribing to our daily newsletter.
If you appreciate what we do, we ask that you consider supporting our local independent news platform.