Federal Financial Support for Individuals
The personal social and economic impacts of the COVID-19 crisis have been significant and are likely to worsen over the weeks and months ahead. Job losses, rising household costs and the likelihood of individuals and / or their family members falling ill are just a handful of factors that are likely to strain household budgets.
The federal government has recognized the toll this is likely to take on Canadians and put together a number of subsidies, deferrals and support measures to help those who are struggling under the pressure of the global pandemic. We’ve summarized the most relevant benefits for you, below.
Employment Insurance (EI)
Canadians who have been laid off or had their hours reduced and who qualify for EI can click here to apply for EI benefits online.
The Government of Canada has also adjusted the requirements for EI sickness benefits — waiving the one-week waiting period and requirement to provide a medical certificate for Canadians who are sick, quarantined or have been directed to self isolate because of COVID-19.
More details here:Employment Insurance and COVID19
Canadian Emergency Response Benefit (CERB)
The CERB is a monthly wage subsidy for wage earners, contract workers and self-employed individuals who would not otherwise be eligible for EI. It will also support workers who are still employed but not receiving income because of disruptions to their work situation due to COVID-19.
What is it:
- $2,000 per month, paid into qualifying individual’s bank account within 10 days of applying
- Paid every four weeks following the first payment until October 3, 2020
Who is eligible:
- Individuals who have lost their job because of COVID-19
- Individuals 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 who are sick or at home because of school and daycare closures.
How to apply:
- Complete the online questionnaire and application form on the Government of Canada website
More details here: Canada Emergency Response Benefit
Tax Deadline Extended
Canada Revenue Agency will defer its filing due date for the 2019 tax returns and payments to June 1, 2020. Any required payments will be deferred until August 31, 2020 with no interest or penalties.
More details here: Department of Finance-Tax Filing Flexibility
Additional Benefits
GST Credit — Adults currently receiving the GST rebate will receive up to $300, and up to $150 per child, deposited to their account in May.
Enhanced Canada Child Benefit (CCB) — The maximum annual CCB payment has increased by $300 per child for the 2019-20 benefit year. This increase will reflect in the May payment for qualifying households.
Canada Student Loan Payments — There is a six-month interest-free moratorium on the repayment of Canada Student Loans.
Registered Retirement Income Fund (RRIF) — The required minimum withdrawals from RRIFs has been reduced by 25 percent for 2020.
More information about the COVID-19 Economic Response Plan is available on the Government of Canada Website.
MNP is Here to Help
Whether you’ve been struggling with an overwhelming amount of debt or worry the ongoing COVID-19 crisis will significantly worsen your existing debt situation — you don’t have to wait to access the help you need. Schedule a Free Confidential Consultation with a Licensed Insolvency Trustee to find out your options today.
During this initial meeting — which we can hold over the telephone or video conferencing — a federally licensed debt professional will review your entire debt situation, challenges and goals with you. And they will use that information to identify meaningful opportunities to address your debt. Possibilities range from debt consolidation and financial counseling to a Bankruptcy or Consumer Proposal, which could see you become debt free in as little as nine months.
