COVID-19: Federal Government Announces $82B Support Package
- Will remain open for trade and for the movement of goods and essential people. Manufacturing supplies and manufacturing workers can continue to cross the border. The closure is only for non-essential travel.
SUPPORT FOR BUSINESSES
- Payroll tax reductions: Helping business keep employees on payroll through a subsidy equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
- Delay in tax filing and payments: The CRA will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. No interest or penalties will accumulate on these amounts during this period.
- Delay in tax audits: The Canada Revenue Agency will not contact any SME to initiate any post assessment GST/HST or Income Tax audits for the next four weeks.
- Direct financial support: Creation of the Canada Account, administered by Export Development Canada (EDC), to provide additional support to Canadian companies through loans, guarantees or insurance policies.
SUPPORT FOR WORKERS
- Emergency Care Benefit (new) providing up to $900 bi-weekly, for up to 15 weeks to support:
- 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 quality 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.
- Emergency Support Benefit (new) $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment.
- Deferred tax filing: CRA will defer the filing due date for the 2019 tax returns of individuals.
- Flexible mortgages and loans: Banks in Canada have affirmed their commitment to working with customers to provide flexible solutions, on a case-by-case basis, for managing through hardship.
- CMHC to offer payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.
To view the complete COVID-19 Economic Plan, click here.