Personal Finance

Canada Emergency Response Benefit - resources & how to apply

  • Last Updated:
  • May 25th, 2020 7:36 am
[OP]
Deal Addict
Sep 19, 2009
1921 posts
760 upvotes
Toronto

Canada Emergency Response Benefit - resources & how to apply

https://www.canada.ca/en/department-fin ... esses.html
News release
March 25, 2020 - Ottawa, Ontario - Department of Finance Canada

The Government of Canada is taking strong, immediate and effective action to protect Canadians and the economy from the impacts of the global COVID-19 pandemic. No Canadian should have to choose between protecting their health, putting food on the table, paying for their medication or caring for a family member.

To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). 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. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.

The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.

The EI system was not designed to process the unprecedented high volume of applications received in the past week. Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need.

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.

The government is working to get money into the pockets of Canadians as quickly as possible. 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.

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.

This benefit would be one part of the government’s COVID-19 Economic Response Plan, to support Canadian workers and businesses and help stabilize the economy by helping Canadians pay for essentials like housing and groceries, and helping businesses pay their employees and bills during this unprecedented time of global uncertainty.
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2091 replies
[OP]
Deal Addict
Sep 19, 2009
1921 posts
760 upvotes
Toronto
Qualification criteria, at least for self-employed are quite blurry at this time.

https://www.cbc.ca/news/politics/trudea ... -1.5509247
To qualify, applicants must have had $5,000 in employment income, self-employment income, or maternity or parental leave benefits for 2019 or in the 12-month period preceding the day they make the application.
Self-employment income made recently shows up when 2020 T1 gets filed, sometime before May 2021. CRA would not be aware of 2019 income either as people can defer filing taxes for couple of months.
Jr. Member
Dec 22, 2018
157 posts
61 upvotes
Markham
q up to $2000 or flat $2000 for everyone? Say if I am working and only getting $1500 per month,can I quit and get $500 more for 4months?
Deal Addict
Dec 12, 2009
4149 posts
1875 upvotes
Toronto
It will be interesting to learn if income tax will be deducted before payments are made.
Can anybody currently on EI give us an idea of how much is being deducted from their cheques?
Social Distancing means staying apart 2 meters or 6 feet, the depth of a grave.
Get closer and you might have one foot in the grave. (Pass it on)
Member
Dec 27, 2008
295 posts
161 upvotes
I'll ask a question because I'm a bit confused like I suspect many others, and I can't get an answer when I call in. Maybe some of you know about this. I've never been on unemployment before and nor has my dad, the family business (owned by my mother) shut down for the first time in decades as a result of COVID19. My father and I filed for unemployment a 3-4 days ago and my father received his paper with the 4 digits code in the mail to make an account. I haven't yet, I hope it'll come in in the next few days.

I read that people who filed after March 15th will be automatically put on CERB instead of regular unemployment benefits. Should we use the 4 digit code and file using the currently existing canada.ca website or should we wait until April 6th for the new website?
[OP]
Deal Addict
Sep 19, 2009
1921 posts
760 upvotes
Toronto
djzapz wrote: I'll ask a question because I'm a bit confused like I suspect many others, and I can't get an answer when I call in. Maybe some of you know about this. I've never been on unemployment before and nor has my dad, the family business (owned by my mother) shut down for the first time in decades as a result of COVID19. My father and I filed for unemployment a 3-4 days ago and my father received his paper with the 4 digits code in the mail to make an account. I haven't yet, I hope it'll come in in the next few days.

I read that people who filed after March 15th will be automatically put on CERB instead of regular unemployment benefits. Should we use the 4 digit code and file using the currently existing canada.ca website or should we wait until April 6th for the new website?
I don't know the answer to your question but you are an interesting case. Can I ask you if your mother, as the business owner, can qualify for any benefits? I mean EI or CERB, not things for businesses. Thanks.
Member
Dec 27, 2008
295 posts
161 upvotes
andrew4321 wrote: I don't know the answer to your question but you are an interesting case. Can I ask you if your mother, as the business owner, can qualify for any benefits? I mean EI or CERB, not things for businesses. Thanks.
As far as we know, currently she doesn't qualify for any benefits as a small business owner, which is absolutely taking its toll and she's understandably very stressed out. She refers to her business as "her first baby". Times are tough...
Last edited by djzapz on Mar 26th, 2020 3:37 pm, edited 1 time in total.
[OP]
Deal Addict
Sep 19, 2009
1921 posts
760 upvotes
Toronto
djzapz wrote: As far as we know, currently she doesn't qualify for any benefits as a small business owner, which is absolutely taking its toll and she's understandably very stressed out. She refers to her business as "her first baby". Times are tough...
She could record some "management fees" on Form T2125, Statement of Business or Professional Activities. No business owner should work for free, not even for "her first baby" :)
Member
Dec 27, 2008
295 posts
161 upvotes
andrew4321 wrote: She could record some "management fees" on Form T2125, Statement of Business or Professional Activities. No business owner should work for free, not even for "her first baby" :)
Well there are very few expenses right now. The employees are laid off, there's no rent because she owns the building. Thing is, it's linked to the orthodontics and dentistry industry which is shut down so there's literally nothing to do.
Newbie
Mar 25, 2020
1 posts
hii i was working 3 jobs 2 part time job and 1 causal tighter making 3200$ a month but my one part time job and a causal job closed down so they laid off me i still have one part time job but i am only making 1300$ a month from it my question is will i be eligible for cerb
Deal Fanatic
Aug 21, 2007
5400 posts
412 upvotes
Markham
TomF62003 wrote: q up to $2000 or flat $2000 for everyone? Say if I am working and only getting $1500 per month,can I quit and get $500 more for 4months?
so, based on my reading of the actual law:

1. $2,000 flat for all who qualify - they will withold 10% tax (I believe this I read online), so the payout will be $1,800 monthly
2. You cannot voluntarily quit to receive the benefit, which is very clear in the law
Deal Fanatic
Aug 21, 2007
5400 posts
412 upvotes
Markham
ROYinTO wrote: It will be interesting to learn if income tax will be deducted before payments are made.
Can anybody currently on EI give us an idea of how much is being deducted from their cheques?
They will be withholding 10%, or $200 from each apyment...netting out to $1,800 per payment, in line iwth the previous benefits which were $900 biweekly

note it is a taxable benefit, so it will go into income for 2020 T1
djzapz wrote: I'll ask a question because I'm a bit confused like I suspect many others, and I can't get an answer when I call in. Maybe some of you know about this. I've never been on unemployment before and nor has my dad, the family business (owned by my mother) shut down for the first time in decades as a result of COVID19. My father and I filed for unemployment a 3-4 days ago and my father received his paper with the 4 digits code in the mail to make an account. I haven't yet, I hope it'll come in in the next few days.

I read that people who filed after March 15th will be automatically put on CERB instead of regular unemployment benefits. Should we use the 4 digit code and file using the currently existing canada.ca website or should we wait until April 6th for the new website?
My reading of this is that yes, you will be transferred automatically.
djzapz wrote: As far as we know, currently she doesn't qualify for any benefits as a small business owner, which is absolutely taking its toll and she's understandably very stressed out. She refers to her business as "her first baby". Times are tough...
So a few comments/planning ideas:

1. If the business is shut, i would say your mom has as good a case as any to receive the benefits. She is not earning income, and while the ccompany seems to be incorporated, i feel like she would meet the spirit of being self-employed.
2. As an alternative, try to pay out wages to your mom/other family to at least get the 10% benefit

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