Below are details on the various government programs for Businesses and Individuals during COVID-19 as of April 6, 2020. We have split this into two sections, Government assistance and Insurance.

GOVERNMENT ASSISTANCE

Canada Emergency Wage Subsidy (CEWS)

• 75% of salary on the first $58,700 per employee, maxing out at $847 per week per employee. There is no limit per employer
• Eligible employers include individuals, corporations and partnerships.
• Any business with at least a 30% decrease in revenue compared to current month of the previous year. We await further details here as some companies will not show decrease in revenue for several months. 
• CEWS would be claimed against wages in three periods March 15-April 11, April 12-May 9 and May 10-June 6.
• Employers are require to reapply each month.
• Employers are to pay employee wages first then apply for the CEWS through the CRAs business account portal. Payment will be received through direct deposit. Employers must keep detailed records.
• Employers must do “everything they can” to pay the other 25% of employee wages.
• CEWS will be taxable to the employer as government assistance.
• Further details are expected in April 2020 with funds being available by May 2020.
• Click here for complete detail

Canada Emergency Business Account (CEBA)

• Up to $40,000 interest-free loan for small businesses and not-for-profit organizations.
• If repaid by Dec 31, 2022, up to 25% is forgivable (up to $10,000).
• Organizations that paid between $50,000 and $1 million in payroll for 2019.
• Organizations that have had their revenues temporarily reduced.
• Loans obtained through your financial institution, in cooperation with Export Development Canada.

Employment insurance (EI)
The one-week waiting period is waived for new claimants who are quarantined and a medical certificate is not required to apply. Qualification for EI will still be on a case-by-case basis, taking into account regional rates of employment and the number of hours worked in the past 52 weeks. Apply here.

Emergency Care Benefit
If unqualified for Employment insurance and the applicant does not have paid sick leave, the Emergency Care Benefit provides up to $900 every two weeks for up to 15 weeks to those affected by COVID-19. Workers who are quarantined or sick, people staying home to take care of a family member with COVID-19 and parents staying home to care for children are all qualified to apply. Apply through the Canada Revenue Agency

Canada Child Benefit (CCB)
The Government is proposing to increase the maximum annual Canada Child Benefit (CCB) payment amounts, for the 2019-20 benefit year, by $300 per child.

Filing your tax returns – individuals and businesses
The Canada Revenue Agency will defer the filing deadline for the 2019 tax returns of individuals, including certain trusts, and businesses.

• For individuals, the filing deadline will be extended until June 1, 2020. The deadline to pay off any outstanding balances interest-free will also be extended, to July 31.
• For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.
• Businesses will also have more time to pay their taxes without paying any interest or penalties. The new deadline will be July 31 to pay any corporate taxes or make any scheduled installment payments that would otherwise be due starting Wednesday.
• The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks.
• For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
• No application required

Mortgage Default Management Tools
The Canada Mortgage and Housing Corporation (CMHC) and other mortgage insurers offer tools to lenders that can assist homeowners who may be experiencing financial difficulty. The Government, through CMHC, is providing increased flexibility for homeowners facing financial difficulties to defer mortgage payments on homeowner CMHC-insured mortgage loans. CMHC will permit lenders to allow payment deferral beginning immediately. See the CMHC website for COVID-19 updates.

INSURANCE

Below is a review on coverage for COVID-19 (disability, office overhead, critical illness and life insurance), premium deferral options and how to update your insurance.

Are you covered?

• Disability insurance
  If you are quarantined and diagnosed with COVID-19, you are considered disabled and your policy will cover you. Self isolation without a diagnosis of COVID-19 is not considered a disability.
• Office overhead insurance
  Office overhead insurance is designed to cover your business expenses in the event that you are disabled or injured; closing your clinic as a safety precaution is not covered under office overhead insurance.
• Critical illness insurance
  Critical illness insurance has defined definitions at the time a policy was purchased. COVID-19 is not a defined critical illness.
• Life insurance
  If you pass away due to COVID-19, your policy will pay.

Can you defer your insurance premium?
YES. Some companies are offering up to 3 months interest free premium deferral if you are unable to make premium payments on your insurance due to COVID-19.

Do you need more insurance?
Specialists have been reflecting on what they have and what they need and some have asked how they can increase their insurance. Due to COVID-19, RBC has responded by reducing medical requirements as listed below:

Life insurance – apply for new insurance with no medical required (no blood, urine or vitals)
– Up to age 50 can apply for $1,000,000
– Age 51-60 can apply for up to $300,000
– Age 61-70 can apply for up to $99,000
– Preferred underwriting

Critical illness insurance – no medical required (blood, urine, vitals).
– Up to age 40 can get $250,000 – no fluids required
– Age 41-50 can get $100,000.
– Age 51-55 can get $50,000
– Discount –  10% discount for OSA members

Disability insurance – no medical required (blood, urine, vitals).
– Up to age 50 can apply for up to $6,000/month.
– Age 51+ can apply for up to $2,500/month
– Discount –  25% discount for OSA members

Click here to apply

If you have any questions, please call us at 416-222-1311 or email info@osainsurance.com

Thank you
To all physicians, we want to thank you for your efforts with COVID-19. We appreciate everything you do to keep us all safe and healthy during this trying time. We understand this is an uncertain time for you, your family and your patients; we are here to support you in whatever way we can.