Updated Covid-19 & The Canadian Government Relief
Canadian Emergency Response Benefit (CERB)
The Canadian Emergency Response Benefit (CERB) was created as a result of the economic impact of Covid-19 on Canadians.
Individuals who lose their income as a result of Covid-19 will be eligible for a maximum amount of $2,000 every four weeks for up to four months.
Both self-employed and employed Canadians who stop work due to Covid-19 for at least 14 consecutive days within each four week period will be eligible for this payment.
Applicants must be residents of Canada and have had an income of at least $5,000 in 2019 or the 12 month period prior to submitting the application.
This payment is available regardless of the applicants' qualifications for EI benefits.
Note that $573/week is the maximum amount that Canadians can receive in EI for those who meet the maximum insurable earnings cap of $54,200 a year.
Canadians receiving EI should not apply for the CERB, unless their EI benefits run out before October 3, 2020.
This CERB will run for the period March 15 to Oct. 3, 2020, and applications will be accepted the week of April 6th through the CRA’s online “My Account” portal.
Once an application is submitted and accepted, payments will be made within three days if the direct deposit option is chosen and 10 days by cheque.
The Wage Subsidy
The previously announced 10% wage subsidy (detailed in my previous post) continues to stand (maximum of $1,375 per employee for a total of up to $25,000 per employer).
The Canadian Government is now looking at a 75% wage subsidy (maximum of up to $5,000 per month per employee) details will follow.
It is advisable to seek professional advice to understand the tax laws that impact your particular situation, and to guide you through the complexities of Canadian Income taxes. AWFS Consulting Inc. offers professional tax, business advisory, and accounting services to clients. The company’s mission is to offer financial leadership and support to clients in this ever-changing economic environment by empowering clients with financial knowledge.