Many Canadians have been out of work due to the pandemic. Thankfully, many people are currently receiving the Canada Emergency Response Benefit (CERB) from the government to get through these rough times.
With businesses slowly beginning to reopen and people beginning to return to work, the real question is “am I still eligible for CERB?” And if I am not eligible anymore, “how do I pay back what I have already received.”
There are several different scenarios in which you would no longer be eligible for CERB and need to repay it back. These include:
- you earned employment or self-employment income during the 4-week period
- you applied for the CERB but later realize you’re not eligible
- you receive a CERB payment from both Service Canada and the CRA for the same period
If you get rehired or find a new job during the 4-week period in question, you are required to repay CERB. For example, you applied for the 4-week period. At the time you applied, you expected to have little or no work or income for that 4-week period. But you have just found out your employer has rehired you and will give you back-pay for that same 4-week period. In this situation, you will need to repay the CERB for that 4-week period.
Repayment Conditions
The conditions around paying back the CERB are different if you’re paying back your first eligibility period or a subsequent period.
For your first eligibility period – If your employment or self-employment income was $1,000 or less for at least 14 days in a row during this 4-week period, you do not need to repay the CERB.
For subsequent eligibility periods – You will be required to repay the $2,000 for an eligibility period if you earned or will earn more than $1,000 (before deductions) from employment or self-employment income during that period.
If you need to return or repay CERB, there are a few different ways to do so. First, you must determine whether you received the CERB from the CRA or Service Canada, as any payment must be returned to the same institution that you received it from.
If you were paid by direct deposit or don’t have the original CERB cheque, you can repay CERB by one of the following options:
- Online via CRA account or
- Online banking with your financial institution or
If you still have the original CERB cheque, you can return the cheque by mail. Just be sure to include the reason for returning the cheque and your Social Insurance Number (SIN) or Temporary Tax Number (TTN).
If you have any further questions in regards to repaying CERB visit: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/return-payment.html.
If you need help sorting through your options, Keenans Accounting Service is here for you. Just give us a call at 705-526-7628 to arrange a consultation by phone or via Zoom meeting. We are practicing social distancing while working remotely and with reduced staff so please leave us a message and we will get back to you as soon as possible.