This has been the year of adjustments. A huge number of businesses have had to reinvent how they handle their day-to-day business. It is no surprise that T4’s have not been spared.
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As many Canadian businesses were forced to close their doors and later modify how they do business in a World during a global pandemic, Canadians struggled to make ends meet. The Canada Emergency Response Benefit (CERB) and Canada Emergency Student Benefit (CESB) were launched in March and May respectively to relieve some of the pressure. Employers deduct taxes prior to depositing their employees’ pay into their account. However, this was not the case with CERB and CESB benefits.
CEBA was originally launched on April 9th, 2020 and was intended to help businesses pay non-deferrable expenses. The eligibility criteria was expanded in June to include businesses that did not have payroll, sole proprietors and family-owned corporations that pay their shareholders in the form of dividends instead of payroll. Loans of up to $40,000 are extended to small businesses and not-for-profits.
Today, our Premier presented an update on measures the provincial government will be rolling out to combat the financial difficulties Albertans are feeling. We wanted to put a list together for you in case you did not catch the live update.
We want you to know that we understand that amidst this global pandemic you may be experiencing higher than usual stress levels. Although we may not have the answers to health questions, we can address some of your financial concerns.
Canada's six biggest banks (Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and Toronto-Dominion Bank) have announced offers of financial assistance, including by allowing some delay mortgage payments for as much as half a year.
Today, Tuesday, March 18, 2020, our Prime Minister announced what steps they are taking to manage our financial concerns. The following actions are not exhaustive as the government will continue to monitor how to best help Canadians.
Individuals that don't have access to Employment Insurance:
There are new measures to enable people who do not have access to EI pay (comparable to what you would receive in EI) every two weeks for 14 weeks.
Two programs that will be put into place:
1. Emergency Care Benefit - for people who are ill, placed in quarantine, have to self-iisolate have to care for a loved one who has COVID 19 but fail to qualify for EI
2. Covid 19 Emergency Support Benefit - for people who lose your job or if you are self-employed and you have to close your shop
Canadians should have access to these funds within two weeks.
More details (https://www.ctvnews.ca/health/coronavirus/how-to-apply-for-ei-sickness-benefits-and-the-new-emergency-worker-fund-1.4858089)
For Small Businesses:
To help you retain staff, the Government of Canada is rolling out a subsidy that pays up to 10% of salaries for a period of three months.
Canada Child Benefit will be increased in the coming months to counteract higher childcare costs.
In May there will be an increase in the GST credit for lower-income folks to offset the sales tax they pay. Every qualifying adult will receive up to $300 + $150 for every child.
Six-month interest-free repayment pause for student loans
Homeless People and Shelters:
A doubling of funds to Reaching Home Program
Boost funding for shelters
Distinction-Based Indigenous Community Support Fund
Additional Support to Businesses:
Export Development Canada will provide support to Canadian companies affected by the global situation
Boosts Farm Credit Canada for farmers and primary food producers