Federal Gov’t Stimulus Package – COVID-19

Earlier today, the federal government announced some welcome measures designed to help Canadians facing hardship as a result of the COVID-19 outbreak.  We’ve included only a few points that may pertain to you. For additional details, click here

For individuals and families:

  • Increased Canada Child Benefit amount of up to $300 per child until June 2020
  • Waiving the 1-week waiting period for EI Sickness Benefits for those without paid sick leave
  • Enhanced Emergency Care Benefit of $900 bi-weekly, for up to 15 weeks for parents who cannot work as a result of caring for children due to school closures (even if they would not normally qualify for EI benefits)
  • An EI Work Sharing Program to provide EI benefits to workers who have had to reduce their normal work hours for reasons beyond their employer’s control
  • 25% reduction to RRIF minimum withdrawals for 2020 if seniors are concerned about depleting their retirement savings too quickly as a result of volatile financial market conditions
  • Deferred deadline to file your 2019 personal taxes to June 1, 2020, plus deferred payment of any taxes owing (or tax instalments) to September 2020
  • Large Canadian banks have promised to allow up to a 6-month payment deferral for mortgages, and possible payment accommodations for other credit products
  • Additional measures to bolster the financial markets by purchasing up to $50 billion of insured mortgage pools and purchasing Canada Mortgage Bonds in the secondary market in order to provide more liquidity and stability during this period of uncertainty

For Business owners:

  • The federal government will provide eligible small employers (those who qualify for the small business deduction) a temporary wage subsidy for 3 months, up to a maximum of $25,000 per employer
  • Deferral of all business taxes owing (or tax instalments) to September 2020, with no interest and no penalties
  • More than $10 billion in support of small and medium-sized businesses through credit solutions in cooperation with the BDC, EDC, and private lenders