Personal Finance

CERB for dividend payment individual

  • Last Updated:
  • Apr 14th, 2020 12:04 pm
[OP]
Newbie
Jan 22, 2019
19 posts

CERB for dividend payment individual

My situation:

Have a part time job with bank only for two days a week and was on short term disability (still get paid) due to big surgery and is expected to return to work in a month or two once I am fully recovered and only get paid for $500 every two weeks. In the past few years I also get other income as dividend payouts from my husband company (the big chunk of it ) which I also paid personal rate tax over the years. He is designing all kinds of apps with his business partner but since this year, their business income dropped significantly (may due to virus or maybe not since it is web based business) , so I lost that part of income.

Can I apply for this CERB because I lost income during this period of time maybe indirectly related to cov-19 or Can he get some sort of relief as business owner? I find this CERB is so not fair as it penalizes the hard working front line worker who risks their life for the possible infection like supermarket workers with increased workload but get paid significant less than this payout
9 replies
Deal Fanatic
Apr 5, 2016
5197 posts
3703 upvotes
Calgary/Vancouver
Doesn't hurt to try and do the application.
Newbie
Aug 13, 2019
23 posts
37 upvotes
You are still on short term disability right? Then you haven't yet stopped working due to reasons related to COVID-19. If you try to go back to work at the bank and can't do so because of COVID-19 then it's different.

For your husband, he might be able to get one of the government loans?
Deal Addict
Jan 19, 2017
4439 posts
2574 upvotes
Vacation55 wrote: My situation:

Have a part time job with bank only for two days a week and was on short term disability (still get paid) due to big surgery and is expected to return to work in a month or two once I am fully recovered and only get paid for $500 every two weeks. In the past few years I also get other income as dividend payouts from my husband company (the big chunk of it ) which I also paid personal rate tax over the years. He is designing all kinds of apps with his business partner but since this year, their business income dropped significantly (may due to virus or maybe not since it is web based business) , so I lost that part of income.

Can I apply for this CERB because I lost income during this period of time maybe indirectly related to cov-19 or Can he get some sort of relief as business owner? I find this CERB is so not fair as it penalizes the hard working front line worker who risks their life for the possible infection like supermarket workers with increased workload but get paid significant less than this payout
Technically you didn’t loose any employment income due to the virus. Your husband’s corporation did loose income, but not you personally. You should be careful about getting dividend from your husband’s corporation without consulting with an accountant. The gov’t had a new income tax rule that came out last year or the year before to prevent business owners from splitting their income with other family members that are not directly involved in the business.
[OP]
Newbie
Jan 22, 2019
19 posts
Thanks for all the comments. That was my thought that I don't qualify. Some friends of mine do not qualify but apply anyway, I was a bit tempting to do the same but kinda of afraid of consequence and also felt a bit guilt.
Jr. Member
Aug 2, 2018
157 posts
94 upvotes
Even if you do apply and get it, later on CRA will probably demand payback. On paper you are still employed.
Deal Addict
Jan 15, 2017
3930 posts
3393 upvotes
Vacation55 wrote: Thanks for all the comments. That was my thought that I don't qualify. Some friends of mine do not qualify but apply anyway, I was a bit tempting to do the same but kinda of afraid of consequence and also felt a bit guilt.
There will be people who apply and receive the benefits that are not entitled to it. As it is being managed by CRA, these people will be easily discovered. The tax system will automatically do a check of anyone receiving the CERB and the amounts entered on line 10100 - Employment Income - on their tax form. Anyone receiving the CERB and not entering the qualifying amounts on line 10100 will be flagged. This is just one example of many of how easy it will be to audit the program.

CRA will also be working with Service Canada with the capturing information from Records of Employment to verify eligibility.

I haven't read anything yet about the possible ramifications of people receiving the CERB who not entitled to it. The gov't will have to bring in policies around CERB overpayments, errors and those who deliberately set out to commit fraud. My thought though is with CRA involved, having your tax account flagged might not be a good thing for many tax filers.
Deal Fanatic
Oct 7, 2007
8350 posts
4309 upvotes
skeet50 wrote: There will be people who apply and receive the benefits that are not entitled to it. As it is being managed by CRA, these people will be easily discovered. The tax system will automatically do a check of anyone receiving the CERB and the amounts entered on line 10100 - Employment Income - on their tax form. Anyone receiving the CERB and not entering the qualifying amounts on line 10100 will be flagged. This is just one example of many of how easy it will be to audit the program.

CRA will also be working with Service Canada with the capturing information from Records of Employment to verify eligibility.

I haven't read anything yet about the possible ramifications of people receiving the CERB who not entitled to it. The gov't will have to bring in policies around CERB overpayments, errors and those who deliberately set out to commit fraud. My thought though is with CRA involved, having your tax account flagged might not be a good thing for many tax filers.
As a taxpayer who will not be taking advantage of any of the COVID19 benefit programs, I am not sure how to feel about this. It feels like Canada is going to have one heck of a bill to pay after all this is over (although I am sensing those that are in power do not want this to end for at least another 1.5 years) but I think that those who really need the funds should get it. However, if people are cheating the system, taxpayers should not be on the hook for these people and the CRA should properly enforce the laws. This message should have been made loud and clear when presenting the benefit programs to all taxpayers instead of only small businesses as the cheaters are everywhere, not just limited to small business owners.
Deal Expert
Aug 22, 2011
35543 posts
21600 upvotes
Center of Universe
choclover wrote: As a taxpayer who will not be taking advantage of any of the COVID19 benefit programs, I am not sure how to feel about this. It feels like Canada is going to have one heck of a bill to pay after all this is over (although I am sensing those that are in power do not want this to end for at least another 1.5 years) but I think that those who really need the funds should get it. However, if people are cheating the system, taxpayers should not be on the hook for these people and the CRA should properly enforce the laws. This message should have been made loud and clear when presenting the benefit programs to all taxpayers instead of only small businesses as the cheaters are everywhere, not just limited to small business owners.
Just like every other social program, we're paying for it regardless.
Deal Addict
Jan 15, 2017
3930 posts
3393 upvotes
vkizzle wrote: Just like every other social program, we're paying for it regardless.
Yes, and a social program like the CERB that is not means tested is ripe for misuse.

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