Updates to help improve cash flow
There have been some updates to the Federal Government's financial support plans, as well as, some announcements from the BC Government that we would like to share with you. There are also some links provided for both individuals and businesses to help improve cash flow over the next few months.
Please note that policies and financial support measures appear to be changing on a daily basis. Although we try to provide you with the most current information available, it is possible that there may be some incongruences.
Two important updates:
- Emergency Response Benefit – This replaces the previously announced Emergency Care Benefit and Emergency Support Benefit – (see point 8 below).
- Employer Wage Subsidy – increases to up to 75% from the original 10% previously announced. (It is not clear at this time what the details are on the subsidy, including whether it will have a capped amount or an end date.) – see point 3, under the 'Business' section below.
For Individuals (including your employees)
- Stop making all personal income tax instalments – the new Government initiative has deferred all payments without interest until after August 31st. Note: You will have to make a catch up payment on September 1, 2020.
- Contact your Banker – defer personal mortgage payments for up to 6 months.
- Tax Refunds – if you are expecting a tax refund, get your tax return filed to receive the refunds.
- BC Hydro Payments – if you are making payments directly to BC Hydro, contact them and make arrangements to defer the payments. You can do so without penalty. For more details, click HERE.
There is also a grant available offered by BC Hydro, see LINK.
- ICBC Payments – if you are making monthly payments, you will be eligible to defer payments for 90 days without penalty. Here is the LINK to details.
- Apply for the BC Emergency Worker Benefit – this is a onetime $1,000 payment available if you are receive EI benefits, including the Emergency Response Benefit described below. One time payment, to be paid in May– details can be found HERE.
- EI Program – if employees are laid off, they may be eligible for the regular EI payments. For more information follow this LINK.
- – EMERGENCY RESPONSE BENEFIT – This benefit replaces the previously announced Emergency Care Benefit and Emergency Support Benefit. This provides eligible workers with a $2,000 per month income support payment for up to 4 months within the period beginning on March 15, 2020 and ending on October 3, 2020. In order to qualify for this benefit, a worker must:
- Be a Canadian Resident individual who is at least 15 years old and in 2019 (or within 12 months before they apply for income support), has a total income of at least $5,000 from employment or self-employment, certain EI benefits or benefits paid to an individual under a provincial plan because of pregnancy, care of their newborn children or adoption.
- Cease working for reasons related to COVID-19 for at least 14 consecutive days within the four-week period for which they make an income support application.
- Not receive any employment income, self-employment income, EI benefits or benefits paid under a provincial plan because of pregnancy, care of their newborn children or adoption, or any other prescribed income, during those 14 days
- Not have voluntarily terminated their employment
Eligible worker will be able to apply for this benefit via an online portal that is expected to be available in early April 2020. Applications will be accepted until December 2, 2020. This amount is effectively available to everyone experiencing a loss of income and even if it is later determined you are not to be eligible the amount is repayable without interest.
- BC Temporary Rental Supplement Program – Up to $500 per month for 3 months for residential renters. Subsidy to be paid directly to landlords. Application process still to be announced. For more information click HERE.
For your Business – including corporations
- Stop making all corporate income tax installments – the new Government initiative has deferred all payments without interest until after August 31st. Note: You will have to make a catch up payment on September 1, 2020.
- Stop making all payments for Provincial taxes – PST, Employer Health Tax, Municipal and Regional Tax, These payment of taxes and filing or returns has been deferred until September 30th.
- Wage Subsidy - Take advantage of the new Wage Subsidy – this is directly taken off of your payroll remittance for the next 3 months – was previously announced at 10% of salary up to $1,375 per employee to a maximum of $25,000 per employer. However, just announced this morning that the wage subsidy could increase to up to 75%. More details to be released soon.
- Apply for BDC Line of Credit – increase your available working capital by applying for additional Government initiative line of credit financing through BDC. Make sure to indicate that the additional loan is for the impacts of COVID-19 when you follow this LINK.
- Contact your Banker and Defer Loan Payments
- Defer business term loan payments - ask them for a deferral of payments on your business term loans for as long as they will allow
- Defer personal mortgage payments for up to 6 months – request the 6 months of deferral on your personal mortgage (again the banks are going to be overwhelmed with requests, you may need to force the situation. Consider not waiting for their permission if they are not getting back to you.)
- Apply for an increase to your Line of Credit to give you extra working capital
- Discuss with your banker other deferral options available for other loans and credit cards, or increasing credit limits
- EI Employee Work Sharing Program – talk to your employees to see if they would be willing to go to reduced hours using a work sharing program which is topped up by EI. Click HERE for more information.
- Review your Credit to Customers – many customers will not be able to pay for your services. Make sure to grant credit to only those that are credit worthy and take upfront payment or deposits as much as possible.
- Tax Refunds – if you are expecting personal or corporate tax refunds, get the returns filed to receive the refunds.
- Commercial Rent Payments – if you are renting premises you need to contact your Landlord and make arrangements for deferral of rent payments. Currently there is no requirement for them to do so but they have the ability to defer their mortgage payments and there will be a 50% reduction of a portion of the property tax so they would have the ability to facilitate this. . You and your Landlord have a mutual benefit to work together to have you business survive.
- BC Hydro Payments – if you are making payments directly to BC Hydro, contact them and make arrangements to defer the payments. You can do so without penalty. Here is the link to DETAILS.undefined There is also a grant available offered by BC Hydro, follow this LINK for more information.
- ICBC Payments – if you are making monthly payments, you will be eligible to defer payments for 90 days without penalty. Click HERE for more.
We try to keep you up-to-date of any assistance on offer as often as we can. If there is anything we can help with during this time, do not hesitate to reach out.
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