As part of our commitment to keep you informed, RHN CPA continues to follow the government’s announcements of measures designed to ease the economic impacts of COVID-19. A major development is that the federal government’s $82-billion emergency coronavirus support package was officially passed on March 25, 2020. This fast-tracked legislation received royal assent from Governor General Julie Payette.
Government of Canada Announces the New Canada Emergency Response Benefit
On March 25, 2020 the Government of Canada announced the Canada Emergency Response Benefit (CERB) which replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.
The CERB will provide a taxable benefit of $2,000 a month for up to 4 months to:
- workers who must stop working due to COVID-19 and who 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.
The Canada Emergency Response Benefit will be accessible through a new web portal starting in early April. Applicants will also be able to apply via an automated telephone line or via a toll-free number. Once the portal is in operation, the government has announced that CERB payments will be issued within 10 days of application. The CERB will be paid every four weeks and be available from March 15, 2020 until October 3, 2020.
In addition to the announcement of the CERB program, the federal government has also made some other announcements of programs designed to ease the financial impacts of COVID-19:
A new Indigenous Community Support Fund
The Government of Canada has also announced it will provide $305 million for a new distinctions-based Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.
https://www.canada.ca/en/indigenous-services-canada.html
EI Work-Sharing (WS) Program
Workers who agree to reduce their normal working hours as a result of developments beyond the control of their employers can receive EI benefits for an extended period of up to 76 weeks due to the downturn in the business as a result of COVID-19.
Prior to applying, employers must review the Application Guide and provide their Employees with a copy of the Employee Annex. Completed applications must be submitted by fax using the following number: FAX 1-604-666-8920
Increasing Credit for Farmers
Also announced this week was a $5 billion increase in the lending capacity of Farm Credit Canada (FCC) for agricultural producers, agribusinesses and food processors. For more information, contact the FCC Customer Service Centre at 1-888-332-3301.
As the COVID-19 response is evolving rapidly, we encourage you to check the latest federal announcements here: https://www.canada.ca/en/department-finance/economic-response-plan.html. If you are looking for additional information on any of these announcements and how they affect you, please reach out to us for support.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.