The Government of Canada has released its economic response plan. Here are some of the major takeaways:
Updated March 27, 2020:
1. PM Trudeau just announced Friday morning the following:
- GST/HST payment due March 31, 2020 are now also deferred. No details yet available. In case you have a GST refund, we recommend filing to get the refund to assist you with cash flow.
- Wage subsidy to be increased to 75%. No details are available if this increase relates to the previously announced 10% subsidy or how it will be administered. The main takeaway is to hold off on making your March payroll source deduction remittance typically due by April 15th. The remittance will be reduced by the subsidy once calculations are clarified. We hope that all details are clarified sometime next week prior to the remittance deadline.
Updated March 26, 2020:
1. Federal government has posted some more details on Canada Emergency Response Benefit. https://www.canada.ca/en/department-finance/news/2020/03/introduces-canada-emergency-response-benefit-to-help-workers-and-businesses.html
Updated March 24, 2020:
1. CRA has released more details on Wage Subsidy for small businesses: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html#h2
2. WCB premiums relief announced: https://www.wcb.ab.ca/assets/pdfs/employers/EFS_Premium_relief.pdf
Updated March 19, 2020: Here is a link to key points summary available for your reading pleasure.
Support for Individuals:
- Waiving the one-week waiting period for EI benefits
- Emergency Care Benefit that will assist self-employed that would typically not qualify for EI measurements
- Proposed increases to Canada Child Benefit amounts
- Individual tax returns filing deadline has been deferred until June 1, 2020
- Payments of any income tax amounts from all taxpayers are deferred until August 31, 2020
- CRA will recognize electronic signatures
- Increased flexibility for homeowners facing financial difficulties to defer mortgage payments on CMHC-insured mortgage loans
Support for Businesses
- Temporary wage subsidy for eligible small employers equal to 10% of remuneration, up to $1,375 per employee and $25,000 per employer. Read more here: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html#h2
- Tax payments are deferred until after August 31, 2020 for any tax balances and instalments due. No interest or penalties will accumulate.
- Access to credit through Business Credit Availability Program
The above and several other measures are outlined in detail in the news release that can be found here: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html
We will post an update as we go through the measures in detail and more information is available on the administration of the plan.