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COVID-19 Federal Benefits and Supports – Canada Recovery Benefit (CRB)

October 3, 2020
By Nizam Shajani, CPA, CA, MBA

The CERB ends October 3, 2020 or once you have received 28 weeks of benefits (whichever comes first). The CERB will transition to Employment Insurance (EI) and be called the Canada Recovery Benefit (CRB).
How much is the subsidy?
The subsidy is $500 per week for 26 weeks per household. The amounts are taxable and deductions will be taken at source, which means you will receive $450 per week and will be paid every two weeks.
The CRB will provide
Who Qualifies?
The CRB is available to workers;
• Who do not qualify for EI and are not employed or self-employed due to COVID-19; or
• Had their self-employment income reduced by at least 50% due to COVID-19.
You should also not have applied for or received the Canada Recovery Sickness Benefit, Canada Recovery Caregiving Benefit, Short term disability benefits, worker’s compensation benefits, EI benefits, Quebec parental insurance plan benefits.
In addition, you must be:
• Residing in Canada and at least 15 years old;
• Have a valid SIN
• Have income of at least $5,000 in 2019, 2020 or in the 12 months prior to the date of their application; and
• Have not quit your job or reduced your hours voluntarily on or after September 27, 2020 unless it was reasonable to do so;
• Be seeking work during the period, either as an employee or in self-employment
• Have not turned down reasonable work during the 2 week period you are applying for.

How do you get the subsidy?
You can apply through the CRA My Account or by calling the automated phone service (1-800-959-2019).
You can apply via CRA My Account,
You will need to re-apply and confirm your eligibility every 2 weeks.
What about unclaimed CERB?
The CERB has ended. CRA will accept and process retroactive applications until December 2, 2020. Periods 5 to 7 can be applied via My Account. Periods 1 to 4 can be applied for by calling CRA at 1-800-232-1966.

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2020 Shajani LLP

Nizam Shajani, Partner, LLM, CPA, CA, TEP, MBA

I enjoy formulating plans that help my clients meet their objectives. It's this sense of pride in service that facilitates client success which forms the culture of Shajani CPA.

Shajani Professional Accountants has offices in Calgary, Edmonton and Red Deer, Alberta. We’re here to support you in all of your personal and business tax and other accounting needs.