We are heading towards uncharted water when it comes to handling of a pandemic in Canada. This presentation looks at the key initiatives in place as part of measures to support Cdns.
1. Coronavirus –
COVID-19 – Canada
Economic Response
(Federal Government)
PAUL YOUNG CPA CGA
MARCH 20, 2020
2. Paul Young - Bio
• CPA, CGA (1996)
• Financial Solutions (FOPM/FPM)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Advance Technology
• SME – Supply Chain Management
• SME – Business Strategy and
Restructuring
Contact information:
Paul_Young_CGA@Hotmail.com
3. Agenda
High-Level view of the spending/programs
Self-Employment / Emergency funds
Sick Benefits / Canada
GST credit
Child Benefit
Business Wage Subsidies
Summary
Other Training and Employment
Development sessions
5. Emergency Care Benefits / Income
Source – BMO and https://globalnews.ca/news/6701363/coronavirus-ei-covid-19-emergency-benefit/
• ROE must be issues
• EI fund balance
• Program should be re-balance, especially as there is surplus balance with EI -
https://www.canada.ca/en/employment-social-development/programs/ei/ei-
list/reports/premium/rates2020.html
• EI is always based on hours work and wages
• Hospitality sector has been the hardest hit. Hospitality sector gets a good chunk of their income from tip
and not wages
• EI is only providing up to $900 bi-weekly. There is concern how this will be calculated.
https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-
response-plan-support-for-canadians-and-businesses.html
• This is dependent on companies getting the ROE out to employees and the govt ability to handle the volume
• Government resources need to be re-directed to ensure the processing is done in a timely fashion
6. Emergency Funds / Self-Employed
Source - https://www.princeedwardisland.ca/en/service/emergency-income-relief-self-
employed
• Some provinces have taken up their own funds to support self-employment like PEI (up to $500
– i.e. $500 / max
• Federal program exist by requires filing with CRA - https://www.canada.ca/en/department-
finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-
and-businesses.html
7. Sick Leave
EI already has existing programs which are based on 55% of
income
https://www.canada.ca/en/services/benefits/ei/ei-
sickness.html
Many companies provide sick leave
Many companies have their own sick leave benefits -
https://www.benefitscanada.com/news/employee-safety-
privacy-leave-considerations-during-the-coronavirus-
crisis-143715
The key will be processing of claims including not
hiking premiums on companies
Govt has said little about the role private
insurance will play in the overall benefits. i.e.
topping up or supplementary pay out.
Government provides very good sick leave benefits -
https://www.macleans.ca/economy/economicanalysis/public-
sector-workers-took-a-record-number-of-sick-days-last-year/
Will the government expand the #of sick days as part
of the emergency funding
8. GST Credit Program
There are eligibility issues for GST - https://www.canada.ca/en/revenue-agency/services/child-
family-benefits/goods-services-tax-harmonized-sales-tax-gst-hst-credit/family-income-level-
where-recipient-will-no-longer-receive-gst-hst-credit.html
• GST credit was target for low
income earners as part of
supplemental income
• Can the government handle the
changes?
• CRA would need to re-look at
its systems as part of getting
the benefit out
• Low income have been impacted
from the carbon tax. The carbon
tax still exists
• https://www.slideshare.net/pa
ulyoungcga/why-a-carbon-
tax-is-not-the-best-option-to-
reduce-emissions
9. Child Benefit
Source – Government of Canada
• Child benefit is based on income the last previous year tax filing -
https://settlement.org/ontario/employment/financial-assistance/child-benefits/what-is-the-
canada-child-tax-benefit-cctb/
• Changes to Child Benefit income impacts people within a certain income threshold.
• Income Thresholds These maximum benefit amounts are gradually reduced based on two
income thresholds. The first income threshold rose is $31,120 while the second income
threshold is $67,426.
• Many impacted workers income have income that would be above the threshold
• https://ativa.com/canada-child-benefit-calculator/
10. Business Wage
Subsidy
Program - Provide eligible small businesses
a 10 per cent wage subsidy for the next 90
days, up to a maximum of $1,375 per
employee and $25,000 per employer.
Employers benefiting from this measure
would include corporations eligible for the
small business deduction, as well as not-for-
profit organizations and charities. This will
help employers keep people on their payroll
and help Canadians keep their jobs.
This would require filing of small
business deduction form with the
government
Source -
https://pm.gc.ca/en/news/news-
releases/2020/03/18/prime-minister-
announces-more-support-workers-and-
businesses-through
11. Summary
EI and sick leave programs are based on wages. Many occupations have tips as part of the salary
There was no coordination with private sector companies and the public sector in regards to sick leave
programs.
More emphasis should have been put on supporting front-line workers
More funding and support for healthcare
Government took good first steps with stimulus, but the programs were not well thought out in terms of
how COVID has impacted the workers, especially the middle class.
Many programs will have little impact on the middle class, especially single people -
https://business.financialpost.com/news/economy/gig-economy-workers-hit-hardest-covid-19-crisis
12. Training and Development
If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies