COVID 19 Benefits, Credits, And Support For Canadian

COVID 19 Benefits, Credits, And Support For Canadian
COVID 19 Benefits, Credits, And Support For Canadian

Many Canadian are facing unprecedented time in our history, and many people are layoffs due to Coronavirus ( COVID-19)pandemic without ending insight.

We are very thankful that our government is stepping up to provide Financial supports to Canadain individuals and families.

We encourage you to file your income tax and benefit return electronically and as early as possible before June 1, 2020, to make sure your benefits and credits are not interrupted.

It can sometimes take up to five business days after the scheduled payment date to receive your benefit or credit payment.

 

Benefits, Credits, and Support for Individuals Impact by a Coronavirus

Emergency Care Benefit

The Emergency Care Benefit will provide up to $900 bi-weekly, for up to 15 weeks. This flat-payment Benefit would provide income support to:

  • Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits.
  • Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, 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.

Application for the Benefit will be available in April 2020 and require Canadians to attest that they meet the eligibility requirements. They will need to re-attest every two weeks to reconfirm their eligibility. Canadians will select one of three channels to apply for the Benefit:

  1. by accessing it on their CRA My Account secure portal;
  2. by accessing it from their secure My Service Canada Account; or
  3. by calling a toll free number equipped with an automated application process.

 

Emergency Support Benefit

The Emergency Support Benefit will provide up to $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment.

 

Goods and Services Tax credit (GSTC) payment amounts

The Government is proposing to provide a one-time special payment by early May 2020 through the GSTC. This will double the maximum annual GSTC payment amounts for the 2019-20 benefit year.

The average boost to income for those benefitting from this measure will be close to $400 for single individuals and close to $600 for couples. This measure will inject $5.5 billion into the economy.

 

Registered Retirement Income Funds (RRIFs)

To ensure that certain groups who may be vulnerable to the impacts of COVID-19 have the support they need, the Government is proposing targeted help by reducing required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020, in recognition of volatile market conditions and their impact on many seniors’ retirement savings.

This will provide flexibility to seniors that are concerned that they may be required to liquidate their RRIF assets to meet minimum withdrawal requirements. Similar rules would apply to individuals receiving variable benefit payments under a defined contribution Registered Pension Plan.

 

Temporary wage subsidy for employers

As part of the Government of Canada’s commitment to supporting businesses, and in response to the COVID-19 pandemic, the Government announced a temporary wage subsidy for employers for a period of three months. Effective immediately, eligible employers (non-profit organizations,

charities, and certain Canadian Controlled Private Corporations) that pay remuneration to an employee, such as salary, wages, or taxable benefits, on or after March 18th and before June 20th, are permitted to reduce remittances of federal, provincial, or territorial income tax by the amount of the subsidy. This measure is only applicable to remittances made to the CRA.