Federal Government Announcements Regarding the Impact of Covid-19:
These recent initiatives are summarized for you since they may have a direct impact on you or a family member.
Temporary boost in the Child Tax Benefit
$900 biweekly for those who don’t have paid sick leave
$5 Billion in support for low income and those facing unemployment
Waiving the one week waiting period for EI sickness benefits for six months and waiving the requirement for a doctor note
Extending the tax filing date to June 1 and allowing taxpayers to defer payments until after August 31 - This is huge! This applies to balances due, as well as installments under Part 1 of the income tax act. No interest or penalties will accumulate during this period. HOWEVER – if you are getting a refund file now – it's your money.
Providing eligible small businesses, a 10 per cent wage subsidy for the next 90 days, up to a maximum of $1,375 per employee and $25,000 per employer
Allowing all businesses to defer until after August 31, payment of income taxes, interest-free
Making additional funds and credit available to businesses of all sizes, including farmers
Purchasing up to $50 billion insured mortgage pools to stabilize funding to banks and lenders
Six-month interest free moratorium on student loan payments
Reducing required minimum withdrawals on RRIF’s by 25% for 2020 – particularly beneficial during the recent market volatility.
The government it is asking banks to work with their customers on debt management plans and repayment flexibility. Banks have confirmed that they will support up to 6-month deferral in mortgage payments, but this will be dealt with on a case by case basis.
While these measures were introduced yesterday, I would recommend that you go to: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html for further information. More announcements are expected in the near future.
This today, also read more news about how to apply for Employment Insurance and Emergency Benefits:
https://www.msn.com/en-ca/news/canada/how-to-apply-for-ei-and-covid-19-emergency-benefits/ar-BB11pxIj?ocid=msedgdhp
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