Cathy Barrie Accounting is pleased to share on going news, with regards to financial options available. During this pandemic.The information is changing almost daily. This is current as of April 10, 2020.
Individuals
CERB (Canada Emergency Response Benefit)
· For individuals that did not quit working voluntarily, not working because of COVID 19
· For individuals who are employed or self-employed (including people taking their pay in dividends from active businesses)
· Benefit amount is $2,000 per month for up to sixteen weeks
· Age 15 years or older
· Must have made $5,000 in 2019 or the last twelve months in employment income, self-employment income or parental benefits
· Monthly application – for the first period no income in past two weeks, additional periods no income
· How to apply: online through my CRA account, or telephone 1-800-959-2019 or 1-800-959-2041 (see government website for days to apply based on your birthday)
· If you have already applied for EI, the government asks that you do not reapply
· Payment comes to you quickly
· Please note: this money is taxable and not a lot of taxes are being held back on the payments. If possible, put some aside to pay the taxes you will owe on it next year.
Additional Money
· An additional $300 per child through the CCB (Canadian Child Benefit). Will happen automatically in the May payment
· One-time special GST payment for low- and modest-income families. Will happen automatically.
Cathy Barrie Accounting wants to also share these other options.
Mortgage Support
· People that qualify can work with their banks and find solutions. One is a six-month payment deferral.
· Please note if you take the deferral interest will still be accruing (and interest on that interest)
· Agreed on deferred payments are not supposed to impact your credit rating. Get the agreement in writing as defense so if it accidently shows up on your credit report you can dispute the information. (You should be checking your credit occasionally to ensure there are no errors on the report and nobody has stolen your identity and tried to get credit in your name.)
Other debt
· Many banks and credit card companies will work with people who are experiencing financial hardship due to COVID 19
· Contact your bank/credit card company to see if they will lower your interest or suspend payments for a time. (You should be asking your credit card company to lower your interest during normal times too. If you’ve been a good customer, they don’t want you to leave and will often negotiate with you. – the worst that could happen is they don’t lower your interest rate and you are no worse off.)
· I have also seen many commercials from car companies that speak about helping people through this time
· If you do run into problems such as not being able to pay your rent, let people know ASAP so you can figure something out. There are many professionals that can also try to help you manage throughout this time.
Student Loans
· Student loan payments suspended until September 2020.
· No payments or interest charged
· You do not have to apply
Seniors
· Will continue to receive their Canada Pension Plan and Old Age Security as usual
· Can reduce their RRIF minimum withdrawals by 25% for 2020
Tax filing dates
· Personal taxes (normally due to be filed April 30th) extended to June 1
· Payment dates (including the June instalments) extended to September 1
· Self-employed is the same as usual – June 15
· Self-employed payments are extended to September 1
Stay posted for more news. The government appears to have recognized that some people (such as business start-up owners, the already unemployed and students) have fallen through the cracks. Changes are happening almost daily and there will be more coming. If you are a business please go to this Link to learn more that may assist you.
Stay up to date with these on going changes.
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If you or someone you know has either accounting or bookkeeping needs.
Cathy Barrie Accounting Feel free to give us a call at (705) 719-7778