With the recent outbreak of COVID-19 and the drastic measure that has been put in place to slow its spread, many self-employed Canadians are beginning to feel financial pressure as their business is limited or shut down altogether. Fortunately, there are several financial options to help self-employed workers through this difficult time.
According to Stats Canada, there are almost 3 million self-employed workers in Canada. These self-employed individuals work as contractors or run their own businesses and do not receive a paycheck from an employer in the same way that the average worker does.
Canada Emergency Response Benefit:
The Canada Emergency Response Benefit is a $2,000 per month benefit for Canadians who have been affected by the coronavirus but who are unable to qualify for Employment Insurance benefits. The benefit is available for four months and can be accessed by self-employed workers.
Income Tax Deferral:
The Government of Canada has deferred income tax deadlines and tax payment deadlines for businesses and individuals. The tax filing deadline for self-employed workers and their spouses is still June 15, 2020, but the tax payment deadline has been extended to September 1, 2020.
The corporate tax filing deadline has been extended to June 1, 2020, while the corporate tax payment deadline has been extended to September 1, 2020.
Provincial Support for Self-Employed Workers:
Provincial student loan payments will be deferred for six months. Provincial tax remittances from businesses can be deferred for five months.
Anyone who is in self-isolation and cannot access federal benefits will be able to receive $573 from the province per week for two weeks. Hydro Quebec has suspended unpaid power bills for individuals and businesses starting March 23, 2020.
All student loan payments will be frozen for a period of six months beginning on March 30, 2020. PST payments have been deferred until the end of September. BC Hydro will provide up to $600 to customers dealing with illness due to COVID-19.
All Alberta Treasury Branches customers can apply to defer loan payments for up to six months. Furthermore, anyone who must self-isolate can apply for the Emergency Isolation Support grant and receive $1,146. Any residential, farm and small commercial customers can defer electricity and natural gas bill payments for three months.
$900 will be paid to self-employed workers who are forced to self-isolated due to COVID-19 and are not covered by federal measures.
Tax filing deadlines for all businesses with payroll of less than $10,000 have been extended by two months.
Government loan payments have been deferred until the end of June, while all student loan payments have been deferred until the end of September.
A one-time payment of $900 is available to self-employed workers as their wait for their federal benefits to arrive.
Newfoundland & Labrador
All loans administered by the Innovation and Business Investment Corp have been deferred for three months.
Prince Edward Island
$500.00 per week for self-employed workers affected by COVID-19 between March 16 and 29th.
What financial relief is available for self-employed workers in Canada?
What is the new tax filing deadline for self-employed individuals in Canada?
Due to COVID-19, the new tax filing deadline for self-employed individuals is June 15, 2020. The tax payment deadline is September 1, 2020.