ent® Chartered Professional Accountants Blog

Canada Emergency Response Benefit (CERB)

Getting ready to access the CERB

You can apply for the Canada Emergency Response Benefit online on and after April 6, 2020. You can get a head start by setting up your CRA My Account as soon as possible.  When you set up your account and if you sign up for direct deposit you will receive your benefit more quickly.

Here is the link for you to apply for CRA My Account.

https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html

After you have set up your account, you will return to the site based on the schedule below. To help with the large amount of traffic CRA is asking you to apply in the following order

• Birthday:
• Jan – March    Apply April 6
• April – June   Apply on April 7
• July – Sept      Apply on April 8
• Oct – Dec      Apply on April 9

 Temporary wage subsidy

The wage subsidy will be available to any employer if their revenue has decreased by 30 percent as a result of the COVID-19 pandemic, that business will be eligible for the wage subsidy. The federal government has said that it will cover 75 percent of the first $58,700 of income earned, which works out to $847 per week. This subsidy will be retroactive to March 15, 2020. The Prime Minister also advised that the wage subsidy will apply to all non-profit organizations, charities, and companies of all sizes. We anticipate that partnerships and sole proprietors will also be eligible based on Bill C-13 even though the Prime Minister did not mention these employers specifically. More substantive details are expected to be announced at a later date.

COVID 19 -Canada Emergency Response Benefit (CERB)

This is a taxable benefit that would provide up to $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The Emergency Response Benefit (CERB) combines the previously announced “Emergency Care Benefit” and the “Emergency Support Benefits” described in my blog on Tuesday, March 24^th, 2020. The CERB will be administered by CRA through a different system than the EI system.

Qualification criteria

1. Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for E.I. sickness benefits.
2. Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not quality for E.I. sickness benefits.
3. Parents with children who require care or supervision due to school closures, and are unable to earn employment income, irrespective of whether they qualify for E.I. or not.
4. Workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB
5. At least 15 years of age
6.  A resident in Canada
7. . Have a total income of at least $5,000 from either employment; self-employment and certain EI benefits in 2019 or in the 12-month period preceding the day on which they make an application.

The application process has not yet been announced but will be made available in the first week of April 2020. As soon as it is available I will post the link.

In Addition

If you are already receiving EI regular and sickness benefits, you would continue to receive these benefits & should not apply to the CERB. If your EI benefits end before October 3, 2020, you could apply for the CERB once the EI benefits cease, if you are still unable to return to work due to COVID-19. If you have already applied for EI & your application has not yet been processed, there is no need to reapply.