Important Updates for Employers regarding COVID-19 pandemic
The Federal government today has announced financial support of up to $27 billion for workers and businesses affected by the COVID-19 pandemic.
A new “emergency care benefit” program has been created which provides up to $900 every two weeks, for up to 15 weeks to help support the following workers:
- Workers, including self-employed who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits;
- Workers, including self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but not qualify for EI sickness benefits; and
- Parents with children who require care or supervision due to school closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not.
This new emergency care benefit program will begin in April of 2020. Canadians who want to apply will have to attest that they meet the eligibility requirements and will need to re-attest every two weeks to reconfirm their eligibility.
To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
The CRA is allowing all businesses to defer, until after August 31, 2020 the payment of any income tax amounts that become owing on or after today and before September 2020.