Canada Emergency Response Benefit (CERB) is taxable, do have a payment pay-back plan ready?

What is the Canada Emergency Response Benefit?

The Canada Emergency Response Benefit provides temporary income support to workers who have stopped working related to COVID-19.

Individuals who are eligible for Employment Insurance regular or sickness benefits, or who have recently exhausted Employment Insurance regular or fishing benefits may also be eligible.

The new Canada Emergency Response Benefit provides $500 per week for a maximum of 24 weeks.

The Benefit is available from March 15, 2020, to October 3, 2020. You can apply no later than December 2, 2020 for payments retroactive to within that period.

Why is the Canada Emergency Response Benefit being extended?

The Canada Emergency Response Benefit was put in place by the Government of Canada to ensure Canadians had timely and efficient support when they needed it most for reasons related to COVID-19. The Government of Canada’s priority continues to be to ensure that Canadians can access the support they need.

While we are seeing positive progress in the number of people returning to the workforce, many Canadians continue to face challenges getting back to work. As well, the restart of the economy is uneven across the country and sectors. Many Canadians may still be out of work and still need temporary income support.

Therefore, the Government of Canada is extending the CERB by 8 weeks to a maximum of 24 weeks, at the current benefit rate of $500/week to ensure workers continue to get much-needed support as they transition back to work.

What was the maximum number of weeks of CERB benefits prior to the extension?

Prior to the extension, a maximum of 16 weeks of temporary income support was available to workers who have stopped working for reasons related to COVID-19 or are eligible for Employment Insurance regular or sickness benefits or have exhausted their Employment Insurance regular benefits or Employment Insurance fishing benefits between December 29, 2019 and October 3, 2020.

The maximum number of weeks of benefit is being extended by eight weeks, for a total maximum of 24 weeks.

The Benefit is available from March 15, 2020, to October 3, 2020. Applicants can apply no later than December 2, 2020, for payments retroactive to within that period.

If I have reached my maximum of 16 weeks how do I apply for the extension?

You would continue to apply as you have for the previous 16 weeks of benefits, either through CRA if you are not EI eligible or through Service Canada if you are EI eligible.

If you are receiving the CERB through Service Canada, you have to submit your internet report every 2 weeks if your situation continues.