New Federal Recovery Benefits

Insights
| 8/27/2020

In response to the Canada Emergency Response Benefit (CERB) program ending September, the Federal Government has introduced three new programs that will run over the course of the upcoming year. 

The following is a brief summary of the new Federal Recovery Benefits.

Canada Recovery Benefit

The Canada Recovery Benefit (CRB) gives income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to EI benefits. Among the criteria you must meet are that you were not working for reasons related to COVID-19 or you had a 50% reduction in your average weekly income compared to the previous year due to COVID-19.

If you are eligible for CRB you can receive $1,000 ($900 after taxes withheld) for a two-week period.

If your situation continues past two weeks, you will need to apply again. You may apply up to a total of 13 eligibility periods (26 weeks) between September 27, 2020, and September 25, 2021.

Applications for this program opened on October 12, 2020, and can be accessed similar to the CERB.

Eligibility

To be eligible for the CRB, you must meet all the following conditions for the two-week period you're applying for:

  • You were not employed or self-employed for reasons related to COVID-19

OR

  • You had a 50% reduction in your average weekly income compared to the previous year due to COVID-19

AND

  • You did not apply for or receive any of the following:
  • Canada Recovery Sickness Benefit (CRSB)
  • Canada Recovery Caregiving Benefit (CRCB)
  • Short-term disability benefits
  • Workers’ compensation benefits
  • Employment Insurance (EI) benefits
  • Quebec Parental Insurance Plan (QPIP) benefits
  • You were not eligible for EI benefits
  • You reside in Canada
  • You are at least 15 years old
  • You have a valid Social Insurance Number (SIN)
  • You earned at least $5,000 in 2019, 2020, or in the 12 months before the date you apply from any of the following sources:
  • Employment income (total or gross pay)
  • Net self-employment income (after deducting expenses)
  • Maternity and parental benefits from EI or similar QPIP benefits
  • You have not quit your job or reduced your hours voluntarily on or after September 27, 2020, unless it was reasonable to do so
  • You were seeking work during the period either as an employee or in self-employment
  • You have not turned down reasonable work during the two-week period you’re applying for 
To encourage claimants to return to work, they would be able to earn income from employment and/or self-employment while receiving the benefit, as long as they continue to meet the other requirements. However, to ensure that the benefit targets those who need it most, claimants would need to repay some or all of the benefit through their income tax return if their annual net income, excluding the CRB payment, is over $38,000. In other words, claimants would need to repay $0.50 of the benefit for each dollar of their annual net income above $38,000 in the calendar year to a maximum of the amount of benefit they received.

This means that for a worker who received 10 weeks of the CRB in 2020 for a total of $4,000, they would have to repay all of the benefit if their net income exceeded the threshold by $8,000 (twice the benefit payment amount). In this example, the worker would have to repay the full benefit amount if their net income was greater than $46,000 (not including the CRB) in 2020.

Apply for the CRB

Canada Recovery Sickness Benefit

The Canada Recovery Sickness Benefit (CRSB) gives income support to employed and self-employed individuals who are unable to work because they are sick or need to self-isolate due to COVID-19, or have an underlying health condition that puts them at greater risk of getting COVID-19.

If you are eligible for the CRSB, you can receive $500 ($450 after taxes withheld) for a one-week period.

If your situation continues past one week, you will need to apply again. You may apply up to a total of two weeks between September 27, 2020, and September 25, 2021.

Applications for the CRSB opened on October 5, 2020, and can be accessed similar to the CERB.

Eligibility

To be eligible for the CRSB, you must meet all the following conditions for the one-week period you're applying for:

  • Reside in Canada
  • Be at least 15 years of age on the first day of the period for which you apply for the benefit
  • Have a valid SIN
  • Have earned at least $5,000 in 2019 or in 2020, or in the 12 months before the date you apply from any of the following sources:
  • Employment income (total or gross pay)
  • Net self-employment income (after deducting expenses)
  • Maternity and parental benefits from EI or similar QPIP benefits
  • Are unable to work for at least 50% of your scheduled work week because you are self-isolating for one of the following reasons:
  • You are sick with COVID-19 or may have COVID-19
  • You are advised to self-isolate due to COVID-19
  • You have an underlying health condition that puts you at greater risk of getting COVID-19
  • Did not apply for or receive any of the following for the same period:
  • Canada Recovery Benefit (CRB)
  • Canada Recovery Caregiving Benefit (CRCB)
  • Short-term disability benefits
  • Workers’ compensation benefits
  • Employment Insurance (EI) benefits
  • Quebec Parental Insurance Plan (QPIP) benefits
  • Are not receiving paid leave from your employer for the same period

Apply for the CRSB

Canada Recovery Caregiving Benefit

The Canada Recovery Caregiving Benefit (CRCB) gives income support to employed and self-employed individuals who are unable to work because they must care for their child under 12 years old or a family member who needs supervised care. This applies if their school, regular program, or facility is closed or unavailable to them due to COVID-19, or because they are sick, self-isolating, or at risk of serious health complications due to COVID-19.

If you are eligible for the CRCB, your household can receive $500 ($450 after taxes withheld) for each one-week period.

If your situation continues past one week, you will need to apply again. You may apply up to a total of 26 weeks between September 27, 2020, and September 25, 2021.

Applications for the CRCB opened on October 5, 2020, and can be accessed similar to the CERB. 

Eligibility

  •   To be eligible for the CRCB, you must meet all the following conditions for the 1-week period you're applying for:
  • Reside in Canada
  • Be at least 15 years of age on the first day of the period for which you apply for the benefit
  • Have a valid SIN
  • Have earned at least $5,000 in 2019 or in 2020, or in the 12 months before the date you apply from any of the following sources:
  • Employment income (total or gross pay)
  • Net self-employment income (after deducting expenses)
  • Maternity and parental benefits from EI or similar QPIP benefits
  • Are unable to work for at least 50% of your normally scheduled work within a given week because you are caring for a family member, or are caring for your child under 12 years old or a family member who needs supervised care because they are at home for one of the following reasons:
  • Their school, daycare, day program, or care facility is closed or unavailable to them due to COVID-19
  • Their regular care services are unavailable due to COVID-19
  • The person under your care is:
  • Sick with COVID-19 or has symptoms of COVID-19
  • At risk of serious health complications if they get COVID-19, as advised by a medical professional
  • Self-isolating due to COVID-19
  • Did not apply for or receive any of the following for the same period:
  • Canada Recovery Benefit (CRB)
  • Canada Recovery Sickness Benefit (CRSB)
  • Short-term disability benefits
  • Workers’ compensation benefits
  • Employment Insurance (EI) benefits
  • Quebec Parental Insurance Plan (QPIP) benefits 
  • Are the only person in your household applying for the benefit for the week
  • Are not receiving paid leave from your employer for the same period

Apply for the CRCB

EI Transition

As of September 27, 2020, there are some temporary changes to the EI program to help you access EI benefits. These changes will be in effect for one year. There are two streams in determining if you qualify:

1. If you received the CERB through Service Canada

After you receive your last CERB payment, continue completing reports. In most cases, you do not need to apply for EI benefits. Service Canada will automatically review your file and your Record of Employment (ROE), then start a claim for EI regular benefits if you qualify. If you don’t qualify, you’ll be notified by mail.

You will need to apply for EI after your CERB ends if:

  • you have a SIN that starts with a 9
  • you are self-employed, or
  • you declared that you returned to work full-time on your CERB report

If you need sickness benefits instead of regular benefits you can declare on your reports that you are unable to work for medical reasons, and you could receive up to 15 weeks of sickness benefits.

2. If you received the CERB through the Canada Revenue Agency

You need to receive all your CERB payments before applying for EI benefits. You can apply after the end of your last CERB eligibility period. Visit EI benefits and leave to determine which benefit is right for your situation and to apply online.

 

Apply for Employment Insurance here.