The Canada Emergency Response Benefit (CERB) program officially ended on September 27, 2020 and the government is transitioning back to Employment Insurance (EI) for those still in need. For those that don’t qualify for EI, there are new recovery benefits that have been announced that you may be able to benefit from. These new programs will be retroactive to September 27, 2020 and be available until September 25, 2021.
The Canada Recovery Benefit is available for those who have stopped working and who are not eligible for EI, or had their employment/self-employment income reduced by at least 50% due to COVID-19. The benefit will provide eligible workers with $500 per week for up to 26 weeks. This benefit will be paid in two-week periods and will be taxable, but the tax will be deducted before the payment is sent to the recipient.
The Canada Recovery Caregiving Benefit is available for workers unable to work for at least 50% of the week because they must care for a child (under the age of 12) or a family member because schools, day-cares or care facilities are closed due to COVID-19, or because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19. This benefit will provide $500 per week for up to 26 weeks per household. This benefit will be paid in one-week periods and will be taxable, but the tax will be deducted before the payment is sent to the recipient.
The Canada Recovery Sickness Benefit is available for workers who are unable to work for at least 50% of their workweek because they contracted COVID-19, self-isolated for reasons related to COVID-19, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19. This benefit will provide $500 per week, up to a maximum of two weeks and will be taxable, but the tax will be deducted before the payment is sent to the recipient.
If you have not yet filed a tax return for 2019 (or previous years), you could see a delay or interruption in government benefit payments. Keenans Accounting Service can help you get up to date, including filing for retroactive benefits. We can also help businesses with government remittances, payroll adjustments and more!
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.