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

4. High-Level View – Stimulus/Action
Source – BMO Economics

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