April 15, 2020
A Look at Canada’s Economic Response Plan to the Global Health Crisis
The Canadian government recently announced an unprecedented stimulus package bill to help individuals and businesses across the country dealing with the uncertainties of the global health crisis.
For managed service providers (MSPs), there are a number of provisions in this bill that you should be aware of for your family, business, and clients you support. We’ll highlight some of these provisions below, but if you would like to learn more, join us for an upcoming webinar on 4/21 where we’ll be joined by Calgary based GGT Chartered Professional Accountants to discuss the stimulus package and answer any questions you may have.
The Economic Response Plan will provide up to $52 billion CAD in direct assistance to individual Canadians and businesses affected by the outbreak, and defer a further $55 billion CAD in tax revenues.
The Government of Canada offers a helpful breakdown of the bill as it applies to individuals, businesses, and industries. Here are a few highlights:
Support for individuals and families:
- A taxable $2,000 CAD a month benefit for up to four months to individuals who have lost income due to outbreak. The benefit is available to individuals affected by the current situation whether or not they are eligible for Employment Insurance.
- Additional help to ‘low and modest’ income individuals and families with a special top-up payment under the Goods and Services Tax credit, estimated to cost about $5.5 billion CAD.
- An extended tax filing deadline for individuals to June 1st, and allows all taxpayers to defer, until after Aug. 31st, 2020, the payment of any income tax amounts that become owing on or after March 18th and before September 2020.
Support for businesses:
- A temporary wage subsidy for a period of three months for eligible small businesses.
- Canada’s Work-Sharing Program has been extended from 38 to 76 weeks to provide income support to employees who reduce working hours because of circumstances beyond their employer’s control.
- The Business Credit Availability Program (BCAP) has been established to increase the credit available to small, medium, and large Canadian businesses.
Support for industries:
- Farm Credit Canada will provide an additional $5 billion CAD in lending to producers, agribusinesses, and food processors.
- Lease rent payments for 21 airport authorities will be waived from March 2020 to December 2020.
- One-time funding of $500 million CAD to provinces through the Canada Health Transfer for their critical healthcare system needs.
To learn more about this response plan, register for our webinar.
Additionally, as we continue to navigate through these uncertain times, Datto will be here to help keep the MSP community informed, connected, and strong. Follow our Help Center for the latest information.