On March 18, 2020 the Government of Canada announced a series of programs to support individuals, businesses, charities and non-profit organizations (NPOs). These programs are being adjusted almost daily. Clearly Financials would like to share a summary of these programs to support individuals and families in our local Edmonton community.
Click here to download the full PDF Guide (The PDF version contains information for both Small Businesses and Individuals). An outline of the sections directed to individuals and families follows.
SUPPORT FOR INDIVIDUALS AND FAMILIES
There are a number of measures to assist individuals and families through these trying times. These can be sorted into the following categories.
One-Time Payments
Tax Deferrals
Employment Insurance (EI) Sickness Benefits
The Canada Emergency Response Benefit
Other Supports
One-Time Payments
Special GST Credit payment
Payments scheduled for April 9, 2020. Average payments are close to ~$400 for individuals and close to ~$600 for couples. No application is required.
Special Canada Child Benefit (CCB) Payment
An additional payment of $300 per child will be added to the May 2020 benefits.
Tax Deferrals
Deadline for payment income tax amounts, that became due on or after March 18, 2020, deferred to September 1, 2020.
Deadline for filing of income tax returns deferred to June 1, 2020. We recommend that you file on time in order to maintain access to benefits such as the GST Credit and CCB.
Employment Insurance (EI) Sickness Benefit
Up to 15 weeks of income replacement for eligible individuals unable to work because of illness, injury, or quarantine. Sickness and regular EI benefits will be rolled into the Canada Emergency Response Benefit (CERB) discussed below.
Canada Emergency Response Benefit (CERB)
$2,000 per 4-week period, up to 16 weeks.
*Update* April 6, 2020 - The government announced that non-eligible dividends would count towards the $5,000 of prior income eligibility requirement.
Other Support
Mortgage / Debt Support
The government has stated that Canada's large banks have confirmed that support will include up to a 6-month payment deferral for mortgages and potential relief for other credit products. Note that interest may still accumulate on these amounts. Speak to your lender for more information.
Emergency Loan Program for Canadians Abroad
Loan of up to $5,000 to for Canadians to return home or to temporarily cover their life-sustaining needs while they work toward their return. Contact the nearest Government of Canada office to apply.
Phone number for the Global Affairs Canada’s 24/7 Emergency Watch and Response Centre +1 613-996-8885 (collect calls are accepted where available)
Email sos@international.gc.ca.
Student Loans
6 month interest-free moratorium from March 30, 2020 to September 30, 2020.
Minimum RRIF Withdrawal
Minimum withdrawal reduced by 25%.
In Closing
We understand that these are challenging times for many individuals and families in Edmonton. We are working diligently at Clearly Financials to support our local communities through these unprecedented changes.
Realize that you are not alone, that we are in this together and most importantly that there is hope.
For other COVID-19 resources please view the resources on our website. Follow us on Facebook for updates.
Disclaimer
This is a summarized version of complex matters that are rapidly changing. We expect further clarification from the government in the coming days. The preceding information is provided for educational purposes only. Speak with one of our advisors if you have any questions about your specific accounting or tax situation.
Clearly Financials offers start-up, accounting, corporate tax, virtual CFO and advisory services for small businesses.
We also provide personal tax return preparation services for individuals and families.
Our office is located in Edmonton, Alberta. Through the power of cloud technology, we are able serve clients throughout Canada.
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