The global health crisis caused by COVID-19 is sparing no one. Fortunately, the Canadian Government has announced measures to support Independent Worker and Small Business. With the Canadian economy on hold, small businesses and the self employed must now use their creativity to keep their businesses going while relying on government support. Here is a quick summary of what support is available:
What COVID-19 support is there for individuals and families in Canada?
-The deferral of tax payments to September 1st (without interest or penalties)
-Taxable benefit of $2,000 per month for up to 4 months
-Moratorium on repayment of Canada Student loans
-Special GST credit payment close to $400 for single individuals and $600 for couples for low- and modest-income families
-Mortgage support delivered by banks on a case-by-case basis
-EI sickness benefits provides up to 15 weeks of income replacement to individuals that are unable to work due to illness or quarantine
-Suspended evictions for lack of rent payment
What COVID-19 Independent Worker and Business support is there in Canada?
-Extended work-sharing program from 38 weeks to 76 weeks.
-Sales tax deferral to September 1st , 2020 (without interest or penalties).
-Wage subsidies to small businesses regardless of size. 75% of wage if they experienced a drop of 30% in revenue up to $847 per week per employee.
-A temporary wage subsidy of 10% of remuneration paid (up to a maximum of $1,375 per employee and $25,000 per employer) will be provided for a period of three months through reduced remittances of income tax withheld on employees’ remuneration. What is the criteria for the Canadian Government Covid-19 Subsidy?
- -The employer is a non-profit organization, registered charity, or Canadian-controlled private corporation (CCPC);
- -The employer has an existing business number and payroll program account with the CRA on March 18, 2020; and
- -The employer pays salary, wages, bonuses, or other remuneration to an employee. CCPCs are only eligible for the subsidy if their taxable capital employed in Canada for the preceding taxation year, calculated on an associated group basis, is less than $15 million.
-Access to credit: $10 billion of additional support will be provided, largely to small and medium-sized businesses through BCAP and BDC. Interest-free loans up to $40,000.
MORE: Canada has always been a great place to freelance. Read here why.
As freelancers and owners of small businesses you are well placed to face challenging situations and innovate creative solutions.
And this is the most important ingredient to help turning the situation. Know that we are all in this together and with all our effort and government support we will come out stronger.