The Canada Emergency Response Benefit (“CERB”) ended on September 26, 2020. The Federal Government replaced the CERB on October 2, 2020, by passing Bill C-4, COVID-19 Response Measures Act (the “Act”). The Act provides three new temporary benefits to Canadians who are unable to work due to COVID-19. The three new benefits are summarized below.
Canada Recovery Benefit
The Canada Recovery Benefit (“CRB”) will provide eligible workers with $500 per week (taxable, tax deducted at source) for up to 26 weeks for those who have stopped working or had their employment/self-employment income reduced by at least 50% due to COVID-19 and who are not eligible for employment insurance (“EI”).
The CRB will be paid in 2-week periods. If the individual’s situation continues past 2 weeks, the individual will need to apply again.
For further information, please go to: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit.html
Canada Recovery Sickness Benefit
The Canada Recovery Sickness Benefit (“CRSB”) will provide $500 per week (taxable, tax deducted at source) for up to a maximum of 2 weeks, for workers who are unable to work for at least 50% of the week because they contracted COVID-19, self-isolated for reasons related to COVID-19, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19. Of note, people who received paid sick leave from their employer are not eligible.
If eligible for the CRSB, the individual can receive $500 (taxable, tax deducted at source) for a 1-week period. If the individual’s situation continues past 1 week, the individual will need to apply again.
For further information, please go to: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-sickness-benefit.html
Canada Recovery Caregiving Benefit
The Canada Recovery Caregiving Benefit (“CRCB”) will provide $500 per week (taxable, tax deducted at source) for up to 26 weeks per household for workers unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19, or because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.
The CRCB will be paid in 1-week periods. If the individual’s situation continues past 1 week, the individual will need to apply again.
Unlike the other 2 benefits, this benefit can only be claimed by one member in each household.
For further information, please go to: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-caregiving-benefit.html
For all 3 benefits, individuals must have earned a minimum of $5,000 in 2019, in 2020, or in the 12 months preceding the first application for this benefit — either from employment, EI, maternity or parental benefits or from Quebec Parental Insurance Plan (QPIP) benefits.
Also of note, individuals cannot claim the CRCB or the CRSB while on EI or CRB.
The benefits will be available between September 27, 2020 through to September 25, 2021. All benefits are being administered by the Canada Revenue Agency (“CRA”) and applications are now open and available through the CRA portal.
If you have any questions regarding these benefits, please do not hesitate to contact e2r® to speak with an Advisor.