Those that lost their jobs because of Covid-19 have most likely been taking advantage of the government’s largest benefit, the Canadian Emergency Response Benefit (CERB). As of mid-August, 8.6 million Canadian employees and self-employed persons have been paid over $69.4 billion.

As CERB comes to an end later this month, the government has announced three new temporary measures that will replicate a simplified version of the Employment Insurance (EI) program. All three are scheduled to start September 27^th.  Here is a brief overview of each:

Canada Recovery Benefit (CRB) This program is for the self-employed and workers that are not eligible for EI. The CRB will provide $400 per week for up to 26 weeks. This benefit is available to Canadian residents at least 15 years old, have a valid SIN, and have stopped working because of the pandemic. They must actively look for work or be working but have experienced a reduction in their (self)-employment income due to Covid-19. The recipients must not have quit their job voluntarily and must have had income of at least $5000 in 2019 or 2020. People receiving CRB can still earn income while receiving the benefit, however, recipients will be required to repay $0.50 of each dollar earned over $38000/yr up to the total amount of the CRB they received.

Canada Recovery Sickness Benefit (CRSB) For those employee (or self-employed) who do not have a paid sick leave program, the new CRSB will provide $500 per week, for up to two weeks for those that can not work or must self-isolate due to Covid-19; this benefit will be available for one year and is taxable. To be eligible an individual must be a Canadian resident with a valid SIN and be at least 15 years old. Furthermore, the individual must be (self-)employed when the application is made, earned more than $5000 in 2019 or 2020 and have missed a minimum of 60% of scheduled work in a particular week and not be receiving paid sick leave.

Canada Recovery Caregiving Benefit (CRCB)  Lastly, the CRCB will provide a $500-per-week taxable benefit for up to 26 weeks if an individual misses at least 60% of their normally scheduled work week to care for a family member due to Covid-19. The CRCB can be shared among household members, but only on household member can receive the benefit in any given week. If a care facility is available but an individual prefers to keep the dependent at home, they are not eligible to receive CRCB. Recipients must be caring for a child under 12yrs, a family member with a disability or a dependant because their school, daycare, day program or care facility is closed (or operates under an alternative schedule) due to Covid-19; a medical professional has advised that they cannot attend the facility due to being at high risk if they contract the virus; or because the caregiver who normally provides care is not available due to Covid-19. This benefit is also available for one year.

Regards,

Tracey

Source: Original article posted on Investment Executive by Jamie Golombek, 08-28-2020