How to Apply for Employment Insurance Benefits and Worker Fund – Canada 2020
March 23, 2020 | Written by: Sohail Afzal
The federal government provides $ 82 billion in financial assistance to Canadians whose work has been affected by the new coronavirus. Prime Minister Justin Trudeau announced additional economic measures on Wednesday, stating that “the government will spend up to $ 82 billion, including $ 27 billion in direct support to Canadian workers and enterprises.” The package includes support for workers who are eligible for employment insurance (EI), as well as workers who do not have access to employment insurance.
For workers who cannot access the EI, an emergency support allowance will offer undisclosed benefits.
To be eligible for employment insurance, you must have worked a certain number of hours during the previous year, depending on your location. In Toronto, it is 600 hours for EI benefits. The number of weeks during which you receive benefits depends on the number of hours you have insured.
Applications for both benefits will be open in April, the date will be determined later. When this happens, Canadians will be able to request it through my CRA account or my Canada account or by calling a toll free number that has not yet been made public.
Tax Deadline Postponed
Ottawa is extending the deadline for filing an income tax return from April 30 to June 1 for individuals, reflecting a similar approach taken in the United States. Individual taxpayers can also defer interest-free payments on taxes due from August 31.
Canadian Chartered Professional Accountants welcomed the decision to delay the tax deadlines. However, the association also noted that Ottawa did not provide complete information on all of the tax dates, including some that are fast approaching.”
Help for Canadian Businesses
The Canadian government will allow businesses to defer income tax until August 31. Interest and penalties are not charged. The government will also increase tax incentives for small, medium and large businesses. Prime Minister Justin Trudeau announced on Wednesday a new business lending program that will provide more than $ 10 billion in additional business support through the Canadian Business Development Bank and Canada’s Export Development.
The government said it would “further expand Export Development Canada’s ability to support domestic businesses and ease Canada’s account limit so that the government can support Canadian businesses of national interest.” The government announced that it will launch an insured procurement program to buy up to $ 50 billion of insured mortgage pools through the Canadian Mortgage and Housing Corporation (CMHC). Extra credit will be available to farmers and the agri-food sector through Farm Credit Canada.
GTA Accounting can help you apply for the loan programs from Canada’s COVID-19 Economic Response Plan for small and medium sized companies.
Help for Canadian People
These are the key elements of government financial package for individuals, families and children.
The Canadian government will provide $ 10 billion in emergency child care worth up to $ 900 per week for 15 weeks.
For families, the Canadian government will allocate $ 5.5 billion to the economy after a special payment for the goods and services tax (GST) loan.
In addition, the government will provide $ 5 billion in emergency assistance payments to workers who are and may not be eligible for unemployment benefits, and $ 2 billion in Canadian parental benefits payments.
The government has extended the deadline for filing an income tax return for individuals until June 1, and will allow all taxpayers to defer payment until August 31. In the meantime, the program will provide eligible small businesses with a 10% wage subsidy up to a maximum of $ 1,375 per employee and $ 25,000 per employer. With respect to mortgages, the federal government will provide lenders with greater flexibility to defer mortgage payments to publicly insured borrowers. The government will remove the mandatory weekly waiting period for EI sickness benefits. The requirement for a medical certificate for employment insurance benefits is not mandatory.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.