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Canada Emergency Response Benefit

This benefit replaces Emergency Care Benefit (ECB) and Emergency Support Benefit (ESB) announced earlier on March 18, 2020

This will provide a taxable benefit of $2,000 a month for up to 4 months to:

  • Workers who must stop working due to COVID19 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 that are sick or need additional care 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 and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.

The Canada Emergency Response Benefit will be accessible through a secure web portal starting in early April. Applicants will also be able to apply via an automated telephone line or via a toll-free number. Canadians would begin to receive their CERB payments within 10 days of application. The CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020.

  • 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 normal EI benefits, if still unemployed, after the 16-week period covered by the CERB.

 Above Benefits are available to “eligible worker”, which means that they must be:

  • at least 15 years of age;
  • resident in Canada; and
  • for 2019 or in the 12-month period preceding the day on which they make an application had a total income of at least $5,000 from
    • employment;
    • self-employment;
    • certain EI benefits (maternity and parental benefits); and
    • Allowances, money or other benefits paid to the person under a provincial plan because of pregnancy or in respect of the care by the person of one or more of their new-born children or one or more children placed with them for the purpose of adoption.

The worker, whether employed or self-employed, must cease to work for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which they apply for the payment.

For the period of cessation of work, the applicant cannot receive income from the sources listed above, and cannot receive any other EI benefits.  Further, workers that quit voluntarily are not eligible.

The legislation does not exclude shareholders or their family members as long as they meet the income requirements.

WARNING: This information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional. No individual or organization involved in either the preparation or distribution of this information accepts any contractual, tortuous, or any other form of liability for its contents or for any consequences arising from its use.

 

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Friday, 12 August 2022

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