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Canada Emergency Response Benefit (CERB)

The Canadian government recently announced the Canada Emergency Response Benefit (CERB). This benefit will provide $2,000.00 every month for 4 months to eligible workers who have lost their job because of the COVID-19 pandemic. This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.

The CERB is as an Employment Insurance benefit and applicants should be able to apply online through Employment and Social Development Canada as of April 6, 2020. Applicants are encouraged to set up direct deposit through their Canada Revenue Agency online account to streamline payment.

On March 25, 2020 the government enacted the COVID-19 Emergency Response Act, part of which creates the CERB.

Eligibility


In order to qualify for the CERB, applicants must be:
  1. A Canadian resident; 
  2. 15 years of age or older; and
  3. Previously employed, self-employed, a contract worker, or have reduced income due to COVID-19.
Individuals who meet the above requirements must also have:
  1. Earned at least $5,000 in 2019 or the 12-month period before applying for the CERB; and
  2. Not earned any income and not worked for at least 14 consecutive days because of COVID-19 for reasons including:
    • Contracting COVID-19;
    • Caring for someone with COVID-19;
    • Having to stay home from work to care for someone with COVID-19;
    • Having to stay home from work to care for a child due to a COVID-19-related closure (e.g. school, daycare, etc. closures); or
    • Being laid off or otherwise having reduced work because of COVID-19.
The CERB is available for any 4-week period between March 15, 2020 and October 3, 2020, for up to a maximum of 4 months.

 Individuals who are currently receiving EI Regular or Sickness benefits can still receive the CERB if those other benefits cease before October 3, 2020, when the CERB ends. The government has further announced that people already receiving these benefits do not need to apply for the CERB and will be automatically enrolled.

 Click here for more information about the CERB and other EI benefits.

Is the Benefit Taxable?


 The benefit is taxable, however the government has stated that recipients will receive the full $2,000 benefit without deductions. This means that any federal and provincial taxes, CPP or other deductions due on the benefit amounts received will likely become due and payable when you file your 2020 taxes.

Note: while this blog and the information above provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. For more information about the benefits available to you, or if you have any other questions regarding your employment issue, please contact our office for a consultation with one of our lawyers.
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