Canada announced the implementation of an Emergency Care Benefit on Wednesday, March 18 where affected workers can receive up to $900 bi-weekly, for up to 15 weeks. This benefit applies to workers, including the self-employed, who are quarantined or sick with COVID-19, but do not qualify for EI sickness benefits.
The self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent and don’t quality for EI sickness benefits will qualify for the Emergency Care Benefit. Additionally, 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, can claim the Emergency Care Benefit.
Applicants will need to re-attest every two weeks. Applications for the Emergency Care Benefit will be available in early April 2020 through three channels, including the ,Ìý and an automated telephone application process.
In addition, for Canadians who lose their jobs or face reduced hours as a result of COVID-19’s impact, the federal government is introducing an Emergency Support Benefit delivered through the CRA to provide up to $5 billion in support to workers who are not eligible for EI and are facing unemployment.
The announcement also included a GST Credit,Ìýwhere adults will receive up to $300 and up to $150 per child and an Enhanced Canada Child Benefit,Ìýwhich will increase the maximum annual CCB payment by $300 per child for the 2019-20 benefit year.
With regards to mortgages, the Government, through Canada Mortgage and Housing Corporation (CMHC), is providing increased flexibility for homeowners facing financial difficulties to defer mortgage payments on homeowner CMHC-insured mortgage loans. CMHC will permit lenders to allow payment deferrals beginning immediately.
Additionally, the federal government has extended the tax filing deadline to June 1, 2020 – the payment deadline on tax owing will be deferred until August 31, 2020.
The situation surrounding the outbreak and spread of COVID-19 is everchanging and each new day presents new challenges for Canada’s leaders. Please know they are doing everything in their abilities to assist Canadians in the uncertain days ahead.
* Note: These Emergency Care Benefit cheques are considered taxable income, thus there will be a $200 income-tax deduction on the official $2000 payments, leaving actual monthly totals of $1,800.
