- Carol Kostachuk
Canadian Government Relief Announcement
Mar 18 - So much stuff in one release! - We'll do business impact first - I've only touched on highlights which would affect most of our clients, the link is there for the full article. One thing to note, some of these are still proposed changes (I've listed immediate if it's already in effect).
Trudeau released additional proposed resources available for self-employed and those not qualifying for EI benefits.
Introducing the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks. This flat-payment Benefit would be administered through the CRA and provide income support to: Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits. - 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 qualify for EI sickness benefits. - 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. (Application for the Benefit will be available in April 2020, and require Canadians to attest that they meet the eligibility requirements. Once we receive more details on this program we will share them out.) ______________________________________ 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 the 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. (We are waiting for more details on what classifies a business as a small employer, as well as the method of obtaining this funding. We will keep you posted as more details become available.) ______________________________________ All businesses can 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. (Currently, these deferrals only apply to Corporate Income Tax, not HST or Source Deduction payments, this is in effect immediately.) _____________________________________ CRA 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 the vast majority of businesses, the CRA will also temporarily suspend audit interaction with taxpayers and representatives.
The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak.
CANADA.CA Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses - Canada.ca The Government of Canada is taking immediate, significant and decisive action to help Canadians…