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Wednesday, March 20, 2019

Federal Budget – March 19, 2019

Canada Training Credit

This new, non-taxable credit would help Canadians pay for training fees.  Every year, eligible workers between the ages of 25 and 64 would accumulate a credit balance of $250 per year, up to a lifetime limit of $5,000.

Canadians would be able to apply their accumulated Canada Training Credit balance against up to half the cost of training fees at colleges, universities, and eligible institutions providing occupational skills training starting in 2020.

Impact on payroll: None, given that employees will request this reimbursement when they produce their income tax return.

EI Training Support Benefit

This income support would help workers cover their living expenses, providing support for ongoing payments such as mortgage payments, electricity bills, and general life costs, while on training and without their regular paycheque.

As a reflection of the Government’s commitment to making this new benefit work for employers as well as workers, Budget 2019 proposes to introduce an EI Small Business Premium Rebate.  Starting in 2020 any business that pays employer EI premiums equal to or less than $20,000 per year would be eligible for a rebate to offset the upward pressure on EI premiums resulting from the introduction of the new EI Training Support Benefit.

Impact on payroll: Since the reduction in the employment insurance contribution will only take effect in 2020, we will provide you with more information when the time comes.

Improving the Economic Security of Low-Income Seniors

To allow low-income older Canadians to effectively take home more money while they work, Budget 2019 proposes to introduce legislation that would enhance the GIS earnings exemption.

Impact on payroll: Since the new exemption will apply starting in July 2020, we will provide you with more information when the time comes.

GST/HST Health Measures

Foot Care Devices Supplied on the order of a Podiatrist or Chiropodist

In recognition of their role in the health care system, Budget 2019 proposes to add licenced podiatrists and chiropodists to the list of practitioners on whose order supplies of foot care devices are zero-rated.

This measure will apply to supplies of these items made after Budget Day.

Multidisciplinary Health Care Services

Budget 2019 proposes to exempt from the GST/HST the supply of these multidisciplinary health services. The relief will apply to a service rendered by a team of health professionals, such as doctors, physiotherapists and occupational therapists, whose services are GST/HST-exempt when supplied separately. The exemption will apply provided that all or substantially all – generally 90 per cent or more – of the service is rendered by such health professionals acting within the scope of their profession.

This measure will apply to supplies of multidisciplinary health services made after Budget Day.