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Canada Emergency Response Benefit (CERB)

March 25, 2020

To support workers and help businesses keep their employees, the government has today proposed legislation to establish the Canada Emergency Response Benefit (CERB).

This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.

CERB is meant to support:

  • workers who must stop working due to COVID-19 and do not have access to paid leave or other income support
  • workers who are sick, quarantined or taking care of someone who is sick with COVID-19
  • working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures.
  • workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work
  • wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

This taxable benefit would provide:

  • $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic.
  • CERB would be a simpler and more accessible support measure than is predecessors
 
The government is working to get money into the pockets of Canadian as quickly as possible:
 
  • Canadians would begin to receive their CERB payments within 10 days of application
  • Benefits will be paid every 4 weeks for up to 4 months. 
 

The portal for accessing the CERB would be available in early April. EI eligible Canadians who have lost their job can continue to apply for EI here, as can Canadians applying for other EI benefits.

CERB VS EI:

  • Canadians who are already receiving EI regular and sickness benefits as of today would continue to receive their benefits and should not apply to the CERB.
    • If their EI benefits end before October 3, 2020, they could apply for the CERB once their EI benefits cease,
    • if they are unable to return to work due to COVID-19. Canadians who have already applied for EI and whose application has not yet been processed would not need to reapply.
  • Canadians who are eligible for EI regular and sickness benefits would still be able to access their standard EI benefits, if still unemployed, after the 16 weeks covered by the CERB.
  • The portal for accessing the CERB is targeted to be available in early April.
  • EI eligible Canadians who have lost their job can continue to apply for EI, as can Canadians applying for other EI benefits.
  • Canadians will begin to receive their CERB payments within ten days of application.
  • The CERB will be paid every four weeks and be available from March 15, 2020, until October 3, 2020.

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.

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