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Canada’s COVID-19 Economic Response DECIPHERED!

We know that by now you are likely tired of getting COVID-19 emails from every business but we wanted to touch base to keep you updated on some important communications during this challenging time.

TAX TIME UPDATE

The deadline has been extended for INDIVIDUALS ONLY.

If you are expecting a refund don’t delay!!

We are still able to process your tax returns in a timely manner without you needing to leave your home. You can begin the process by clicking here: Start Your E-Return

  • Personal income tax returns normally due on April 30 will now be due on June 1, 2020.
    • Individuals expecting a refund are encouraged to file sooner to access their refund faster and get benefits paid more accurately.

Tax payment deadlines for many amounts owing have been delayed from April 30th, 2020 until August 31, 2020Corporations must file at the regular time. All corporate income tax payments due on or after March 18 have been extended.

GST & PST returns must be filed at the regular time!

INCOME SUPPORT

The key information you need to know if COVID-19 has impacted your job, childcare, or business.

The Government will be introducing the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks.

This  Benefit is going to be administered through the Canada Revenue Agency (CRA) and provide income support to:

  • Workers, including the self-employed, who are quarantined or sick with COVID-19 or caring for a family member who is sick 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. Homeroom encourages everyone that has children to apply for this benefit as this could be the loophole that allows owners of corporations and self-employed individuals to receive EI. We cannot guarantee that you will receive benefits, but this looks to be the most likely area that exceptions will be given.
  • Self-employed individuals are encouraged to also apply for EI. Normally you would not be eligible. The only way to find out if you qualify under these extenuating circumstances is to complete the online application and answer the questions honestly.

Additionally $5.0 billion in support is going to be provided to workers who are not eligible for EI and who are facing unemployment.

The Government is also implementing the Employment Insurance Work Sharing Program, which provides EI benefits to workers who agree to reduce their normal working hours as a result of developments.

EI claims will be processed by Service Canada based on your last day worked. Even if takes a couple of days for us to file your ROE, you will not lose out on any benefits as they will be pro-rated.

How to apply:
Through the CRA MyAccount online portal
https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html

OR My Service Canada Account
https://www.canada.ca/en/employment-social-development/services/my-account.html

Useful Link: Coronavirus disease (COVID-19) – Employment and Social Development Canada

PROPOSED SUPPORT

On top of what is confirmed the Government is proposing the following

  • A one-time special payment by early May 2020 through the Goods and Services Tax Credit (GSTC) that will provide an average increase for those benefiting from this measure will be close to $400 for single individuals and close to $600 for couples.
  • An increase in the Canada Child Benefit (CCB) payment amounts for the 2019-20 benefit year by $300 per child (this is only for the 2019-20 year).
  • Stopping interest on student loans for 6 months
  • Reducing the RRIF minimum withdrawal requirement.
  • Providing $305 million for a new Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.
  • Providing $157.5 million to support those experiencing homelessness.
  • Providing up to $50 million to women’s shelters and sexual assault centres.

SMALL BUSINESS SUPPORT

Eligible businesses will be able to receive a 10% wage subsidy for the next 90 days up to a maximum of $1,375 per employee and $25,000 per employer. Businesses will be able to access this support immediately by reducing their monthly payroll liabilities payments. PLEASE DO NOT DO THIS ON YOUR OWN. HOMEROOM WILL BE IN TOUCH ABOUT THIS PRIOR TO APRIL 15 WHEN YOUR NEXT REMITTANCE IS DUE.

Additionally, the government announced on March 13, a new Business Credit Availability Program will provide more than $10 billion of additional support to businesses experiencing cash flow challenges through the Business Development Bank of Canada and Export Development Canada.

If you are financially stressed due to having been temporarily laid off from your job and you need temporary relief from your mortgage payments, please contact your lender directly. Call volumes are very high, so please be patient. With some lenders, email may be a great option as well. I would recommend deferring your mortgage payments only if it is absolutely necessary.

Know that we are here for you as you navigate this global crisis and we look forward to supporting you during this tax season!

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