With the global COVID-19 pandemic continuing to develop, September marks a transition for Canada. The Canada Recovery Benefit (CRB) has replaced the Canada Emergency Response Benefit (CERB).With CERB ending recipients will either need to transition to Employment Insurance (EI) or look to the CRB for financial support if eligible.
The Canada Recovery Benefit (CRB) gives income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits. The benefit amount is $1,000 per two-week period less 10% withholding tax.
To be eligible an applicant must have earned at least $5,000 in 2019, 2020 or in the 12 months before the application date. This includes $5,000 in net income (after deducting expenses) for those who are self employed.
The Canada Recovery Benefit will help Canadians who stopped working due to COVID-19 but do not qualify for EI and Canadians who continue to have their employment or self-employment income reduced by 50 per cent of their average 2019 weekly income due to COVID-19. It will provide eligible workers with $500 per week for up to 26 weeks, between September 27th, 2020 and September 25th, 2021.
Like EI, this new benefit will be paid retroactively for the previous two weeks. This is different from the CERB, which was paid in advance. If anyone’s situation continues past 2 weeks, they will need to apply again. The application process can be up to a total of 13 eligibility periods (26 weeks).Benefits are applied for retroactively for any period up to 60 days after that that period has ended
Applicants may earn employment or self-employment income while they receive the CRB. However, 50 cents on every dollar of net income reported on the tax return above $38,000 will need to be repaid, until the benefit amount is reduced to zero.
Other BENEFITS AVAILABLE TO CANADIANS during the pandemic;
- A Canada Recovery Sickness Benefit (CRSB)of $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19.
- A Canada Recovery Caregiving Benefit (CRCB)of $500 per week for up to 26 weeks per household, for eligible Canadians unable to work 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.