Canada Emergency Response Benefit (CERB)

This is a new program introduced as part of the Federal government’s COVID-19 response. It is targeted to workers (including the self-employed) who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures.

Who is Eligible?

A “worker” who meets the following criteria may be eligible to receive CERB:

• At the time of application, the person is at least 15 years;

• The worker was a resident of Canada;

• In 2019 or in the 12-month period preceding the date of the application, the worker had total income of at least $5,000 of employment or self-employment income, or other related benefit, and

• The worker, whether employed or self-employed, ceases working for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which they apply for the payment;

Workers who are still employed but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB.

What are the Benefits?

This taxable benefit pays $2,000 monthly (i.e.: $500 per week), for up to 16 weeks. This is a flat-payment benefit to be determined by the Minister and subject to change in accordance with the regulations of the Canada Emergency Response Benefit Act.

How Do You Apply?

There are two ways to apply:

• Online with CRA My Account

• Over the phone with an automated phone service (1-800-959-2019)

Please follow the guide below on the timing of when you should apply:

If you were born in the month of January, February or March:

Apply for CEB on Mondays (Your best day to apply would be April 6)

If you were born in the month of April, May or June:

Apply for CEB on Tuesdays (Your best day to apply would be April 7)

If you were born in the month of July, August, or September:

Apply for CEB on Wednesdays (Your best day to apply would be April 8)

If you were born in the month of October, November, or December

Apply for CEB on Thursdays (Your best day to apply would be April 9)

You can apply on Fridays, Saturdays, and Sundays regardless of birth month.

Important Notes

• Applicants will have to reapply for the CERB payments every 4 weeks.

• If the applicants earn any sort of employment or self-employment income, at any time during this 16-week period, the CERB payments should be stopped. If applicants continue to receive the CERB payments while receiving employment or self-employment income, there could be severe consequence imposed by the government.

For questions regarding the Canada Emergency Response Benefit and for tax planning opportunities, please contact:

Thomas Guo, CPA, CA

tgtaxquestions@gmail.com

These presentations are intended for general information purposes only. Audience are recommended to consult with qualified professional to obtain advice and subsequent management for your particular case. The views and opinions expressed by the speakers do not necessarily reflect the policy or position of Assisting in Medical Expectations.