Never Retire Profile of the Week
Dr. Anthony Fauci
There’s a good chance you’ve heard the name Dr. Anthony Fauci a lot in the past few months. That’s for two good reasons. One, as US Director of the National Institute of Allergy and Infectious Diseases, Fauci has been a lead member of the White House Coronavirus Task Force. His is the voice of experience and reason that Americans and other citizens around the world have come to know and respect. Second, at the age of 79, Fauci has served public health for over 50 years and continues to do so with the same dedication and professionalism. Fauci is another Never Retire individual we’re grateful to have on the job.
Canada’ s COVID-19 Economic Response Plan – Support for Individuals
We are all experiencing a disruption in our daily life, and many of us are also suffering a reduction in employment income because of corporate layoffs or stay at home policies.
As the virus situation changes every day, so does our government’s response in an attempt to support those individuals and businesses most affected by closures, slow downs, and the need for social distancing in order to lessen the spread of COVID-19.
To stay informed of the latest developments, my suggestion is to follow a reputable media source like the CBC, tune in to Prime Minister Trudeau’s daily briefings, and review Canada’s Economic Response plan available here.
In this article, I outline the major programs that have been provided by the Federal Government for individuals (businesses is a separate topic). My objective is to provide a brief summary so you can assess whether you, as an individual, qualify for any of them. A full report is available here. As always, call our office if you have questions or would like further clarification.
Please feel free to share this article with anyone you know who has been economically affected by the pandemic. We are happy to take calls from any readers, including those who aren’t clients. This is a time for all of us to help each other.
Support for individuals and families
Canada Child Benefit
An extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. No need to re-apply; if you are already receiving the CCB, you will get it automatically and the benefits will be paid out as part of the scheduled payments in May.
Goods and Services Tax credit payment
A one-time special payment starting April 9 through the Goods and Service Tax credit for low- to modest-income families, with an average payment of $400 for a qualify individual and $600 for couples. No need to apply; if you are eligible, you will get it automatically.
Extra time to file tax return
The 2019 tax return will be deferred until June 1st , 2020, and any new income tax balances due or instalments will be deferred until August 31st , 2020, without incurring interest or penalties.
Mortgage support
Canadian banks have committed to work with their customers on a case-by-case basis to find solutions to help manage hardships caused by COVID-19. This may include payment deferral, loan re- amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements. Call our office or your bank for more information.
Support for people facing unemployment
Canada Emergency Response Benefit (CERB)
The CERB will provide temporary income support in the form of a taxable benefit of $2,000 a month for up to four months to eligible workers (payments will be backdated from March15th and terminate on October 3, 2020)
Here’s who is eligible: employees, contract workers, or self-employed, whether you qualify for EI or not
AND
- Those who have no income due to COVID-19 slowdown for at least 14 consecutive days in a four-week period.
- Those who have been laid off temporarily/permanently (or still employed or self-employed but work is not available), or are sick/quarantined, or caring for the sick or caring for children home from school.
- You earned at least $5,000 for 2019 or in the 12 months preceding the application date through employment income, self-employment income, or parental leave benefits AND are over the age of 15.
Note, the benefit is not available for employees who quit their jobs.
When to and how to apply
The benefit will be accessible online on April 6th . Make sure you set up an account at “CRA My Account” so you can receive direct deposits. First Payment is expected within 10 days of application. Afterwards, the benefit will be paid every four weeks up to 16 weeks.
- In order to control the volume, applications dates will be based on birth month.
- Birthdays in January, February, March: apply on Mondays
- Birthdays in April, May, June: apply on Tuesdays
- Birthdays in July, August and September: apply on Wednesdays
- Birthdays in October, November and December: apply on Thursdays
- Anyone can apply on Fridays, Saturdays and Sundays.
Employment Insurance
For those who applied for EI benefits after March 15th , 2020, there’s no need to reapply for the CERB, the EI claim will be transferred automatically to the CEBP. It appears that EI is still available for those who remain unemployed after the 16-week period covered by the CEBP has lapsed.
Support for seniors and students
Reduced minimum withdrawals form Registered Retirement Income funds (RRIF)
The government is reducing the required minimum withdrawal from a RRIF by 25% in 2020. If you don’t need the money, reducing your minimum RRIF withdrawals is a great idea because it prevents selling equities during a market decline.
Support for students and recent graduates
Effective March 30th , the government is placing a six-month interest-free moratorium on the repayment of Canada Student Loans for all student borrowers. This means no payments are required and interest doesn’t accrue during the six months.
I hope the above summary helps you navigate through all the existing and new programs that are available from the Federal Government. Of course, this may not be the final word from our government about supports. This is what we know now, and it’s likely to change as our situation continues to evolve. Check a reputable news outlet, our PM’s briefings, and the government website that provides complete information.
And as always, I am here – via phone or email – to help as much as I can.
Let’s do everything we can to help our country get through this crisis: stay informed, stay in touch with each other, and stay home unless absolutely necessary.
Did this article resonate with you? What did I miss? Send me a note and let’s start the conversation.
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Call me if you in want to map out how you can Never Retire. You can also subscribe to our Never Retire Newsletter, contact us to order a complimentary book, register for one of our events, and call us to meet with a Certified Financial Planner. We offer you a range of services from a financial plan to investment advice or helping you take advantage of our investment models. Call me at 416-355-6370 or email me at richard.dri@scotiawealth.com.
source https://richarddri.ca/what-to-do-if-you-lose-your-job/
Dri Financial Group 