COVID-19 Relief for Canadian Taxpayers

COVID-19 Relief for Canadian Taxpayers

RMP’s helpful guide to the Federal Government’s most recent announcements

We at RMP recognize that we are in uncharted territory at the moment and we want to do our very best to help our clients in their time of need.  Our responsibility to you is to help equip you with as much information as possible so that your personal and business finances can withstand the uncertainty that we all face over the next few months.

The Government of Canada has responded to the economic impacts of the COVID-19 pandemic by enacting new financial benefits and support for business owners and taxpayers during these unprecedented times. RMP is continuing to monitor all measures that have been announced to help Canadian businesses and taxpayers navigate these difficult times.

We are committed to helping Canadian business owners and taxpayers access the invaluable benefits and support that they need during these uncertain times. We will continue to do our best to offer updates and advice as the situation changes. Now more than ever, you need a trusted partner to help you navigate the rough waters that we are expected to face over the next three to six months. Just remember, the COVID-19 outbreak will pass, it’ll just take some time.

Below, we’ve compiled a brief summary of the benefits and support that the government has offered to all Canadian taxpayers.

COVID-19 Economic Response Plan

COVID-19 benefits and services issued by the Government of Canada include measures to address the needs of Canadian taxpayers:

https://www.canada.ca/en/department-finance/economic-response-plan.html

Most benefits listed in this page can be applied for via CRA My Account and My Service Canada Account. If you don’t have an account on either platform, register for one as soon as possible:

CRA My Account: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html

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

Benefits and support for individuals

Due to economic downturn, illness, or the need to care for others, many Canadian workers are experiencing interruptions to their regular employment that impact their cash flow and their ability to meet their basic needs.

The new Canada Emergency Response Benefit (CERB):

  • A taxable benefit of $2,000 a month for up to 4 months, made available to:
      • Workers who must stop working due to COVID19 and do not have access to paid leave or other income support.
      • Workers who are sick, quarantined, or taking care of someone who is sick with COVID-19.
      • Working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures.
      • Workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work.
      • Wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance
  • Key eligibility requirements:
      • Available to any worker who earned $5,000 in the previous year
      • Income has dropped to zero due to COVID-19 for 14 consecutive days

The Canada Emergency Response Benefit will be accessible online in early April. You can get ready to apply online by setting up your CRA My Account now, and signing up for direct deposit to get your benefit more quickly.

For those facing UNEMPLOYMENT, the government has:

    • Improved access to Employment Insurance (EI)by waiving the one-week waiting period. Those laid off due to a COVID-19 shutdown will need a notice of layoff and a Record of Employment (ROE).

 

For those who are SICK, QUARANTINED, OR CARING FOR INDIVIDUALS WHO ARE, the government has:

    • Waived the one-week waiting periodfor quarantined individuals who are eligible for EI sickness benefits as well as the need to provide a medical certificate. EI sickness benefits provide up to 15 weeks of income replacement.

 

For those CARING FOR CHILDREN the government has:

    • Increased the maximum annual Canada Child Benefit (CCB) payment amounts for the 2019-2020 payment year by $300 per child, starting in May.

 

For LOW-INCOME INDIVIDUALS and those paying off STUDENT LOANS, the government has:

    • Issued a special one-time payment through the Goods and Services Tax Credit (GSTC). This payment, available to those who already receive quarterly GST credits, will boost payments to approximately $400 for individuals and $600 for couples. Payments will be issued in early May.
    • Deferred Canada Student Loan and Canada Apprentice Loan payments. Beginning on March 30, 2020, all individuals currently repaying loans will receive an interest-free moratorium on amounts owed until September 30, 2020.
    • Personal tax filing deadlines: Personal income tax filing has been deferred to June 1, 2020. Those who expect to receive either the GSTC or CCB are encouraged to file on time to ensure that they receive these entitlements.
    • Payment of amounts owing will be deferred to September 1, 2020, with relief applying to tax balances as well as instalments. No interest or penalties will be incurred between March 18, 2020 and August 31, 2020.

 

RMP’S Commitment to help

Many of the Canadian taxpayers we serve are wondering how to maintain not only their personal health but the health of their finances and, by extension, their family during these difficult times. Our reminder to you is that we are by your side during these uncertain times. Remember, these uncertain times, will pass.

 

If you have any questions about the benefits and support measures noted above, please free to call us.