COVID-19 – Update – Canada Emergency Response Benefit

The Government of Canada has introduced a temporary income support for workers who stopped working because of COVID-19, called the Canada Emergency Response Benefit (“CERB”). The CERB provides a payment of $2,000 for a 4-week period, for up to 16 weeks. Eligibility periods are 4 weeks long. A worker may re-apply for the CERB for multiple 4-week periods, to a maximum of 16 weeks (4 periods).

CERB is available to workers who:

• did not apply for, nor receive, CERB or EI benefits from Service Canada for the same eligibility period;
• did not quit their job voluntarily;
• reside in Canada;
• are 15 years old or more when they apply;
• earned a minimum of $5,000 (before taxes) income in the last 12 months or in 2019 from one or more of the following sources:
  • employment income
  • self-employment income
  • provincial or federal benefits related to maternity or paternity leave; and
• stopped or will stop working due to COVID-19;
  • are applying for the CERB for the first time
    • for at least 14 days in a row during the 4-week payment period, they do not expect to receive more than $1,000 (before taxes) from employment and self-employment income,
  • are re-applying for another period
    • they do not expect their situation to change during this 4-week period and they do not expect to receive more than $1,000 (before taxes) from employment and self-employment income, or
  • received regular EI benefits for at least 1 week since December 29, 2019
    • they are no longer eligible for EI benefits.

The CERB is a taxable benefit. Workers may return or need to repay the CERB where they returned to work while still in receipt of the CERB or applied for the CERB, but later realized that they were ineligible for the CERB.

Workers may apply through either Service Canada or the Canada Revenue Agency. They should not apply through both agencies.

More information is available here.

The information contained in this article is for general information only and is not intended as legal advice or opinion. Please contact Goldman Sloan Nash & Haber LLP for specific advice or information regarding your specific circumstances.