CERB vs EI, plus expanded CERB Eligibility!
DON’T FORGET TO APPLY FOR THE BC TEMPORARY RENTAL SUPPLEMENT BEFORE END OF APRIL
My last update from April 11th unpacked the details of the BC Temporary Rental Supplement (BC-TRS). You can also review the details and application process here.
As a reminder, if you apply in April you will automatically be deemed eligible to receive the supplement for all 3 months of April, May, & June. However, if you do not apply until May you will NOT be able to back-date the supplement to include April and will only receive it for 2 months. Make sure, if you are eligible, to apply before end of April in order to receive the supplement for all 3 months.
ELIGIBILITY FOR THE CERB HAS BEEN EXPANDED!
Since March 15th, there have been 8.7 million applications to the CERB, and $19.8 billion has been paid out.
You can now apply for the CERB if you meet all the existing eligibility requirements and you:
- Have reduced income or hours due to COVID-19 and earn $1,000 or less in any 4-week period for which you apply
- Are a seasonal worker whose job is no longer available to return to, due to COVID-19
- Were/are receiving EI benefits that run out between December 29, 2019 and October 3, 2020 and can no longer find work due to COVID-19
*There has also been a clarification that dividends paid out of a corporation taxed at the small business rate will be counted as income for both measuring the minimum $5,000 income earned in the past 12 months to be eligible for the CERB AND will be counted toward the $1,000 maximum earnings threshold to stay eligible for the CERB.
Anyone finding themselves in one of the situations outlined above was previously unsupported by the CERB, but thanks to huge amounts of public feedback these requirements have been expanded so now a ton more people can benefit. While the CERB is still not reaching everyone it should, this is a huge step and I know many of you are already taking advantage of this expanded eligibility!
In addition, the federal government has also specified that royalty / copyright payments received by artists for work done prior to the crisis will not be counted toward the $1,000 maximum earnings in order to be eligible. Hooray!
If you are receiving support payments from your province/territory, these do not count toward the maximum income regarding eligibility for the CERB. Pensions, student loans, and bursaries also should not be included in the $1,000.
Something to note is that for the first period you apply you cannot have earned more than $1,000 for only 14 consecutive days within the four-week period. Let's dive a little deeper into the math of this (obviously), with an example!
The first CERB period is March 15 - April 11.
You have a part-time job and some freelance gigs on the side. You were laid-off from your job on March 29th.
This means, there are 14 days remaining in the first CERB period, as of the day you were laid-off.
You continue to do a few small freelance gigs, for the 14 days from March 30 - April 11, and they total $1,000 or less in income.
Congratulations! You are eligible to apply for the full $2,000 CERB benefit for the period March 15 - April 11!
But, Gillian, it's April 21st! Aren't I too late to apply for the period ending April 11th?
No! You can still retroactively apply to the first period, because they only recently updated these eligibility requirements and many people who were previously ineligible, will now become eligible. That's the whole point!
You are able to receive the CERB for up to 16 weeks between March 15th and October 3rd, 2020.
CERB vs EI (why can’t they just get along?)
I have received many stories from people who are experiencing frustration and confusion around how the EI and CERB systems interact with each other. I'm adding an updated FAQ below to hopefully address some of these issues.
If you are experiencing issues with your application, try calling the dedicated CERB phone line, and be sure to bring your patience with you: 1-833-966-2099
Why are there issues with EI & CERB conflicting with each other? I thought they were the same thing.
Originally, the messaging put out there emphasized that all EI applications received after March 15th would become CERB payments, effectively rendering them to be the same thing. While this is partially true, it's not the full picture of what's going on.
In order to divide the administrative work, the CERB is being processed through two distinct government departments: Service Canada and Canada Revenue Agency. From the perspective of an applicant, you can go to the same website and you will receive the same benefit payments as everyone does, but on the back-end your application will be processed and recorded in two different systems. The system your application is processed through depends on whether you would normally be eligible for EI (Service Canada) or you are not normally eligible for EI (CRA). For many people, this has resulted in accidental double-payments of $2,000, or a payment of $2,000 and another payment of $500, or something in between.
Only apply for the CERB through either Service Canada or the Canada Revenue Agency - not both!
What should I do if I received duplicate payments?
1) Don't spend it all. The maximum you can receive from the CERB is $8,000 over 16 weeks. Budget accordingly.
2) Don't call Service Canada or CRA. They are aware of this technical issue and have said they will be reaching out to individuals at some point if necessary.
3) Don't stress! Dealing with technical & administrative glitches of social benefits payments is not your responsibility. Just use the money wisely and stay informed.
4) If you feel inspired, pay back the excess you received. (for real, they suggest this on the CRA website. hah.)
I think I should repay the CERB. What now?
If you return to work earlier than expected or applied for the CERB but later realized you're not eligible, you may want to re-pay the funds you received. Your options are:
If you received a cheque but haven't cashed it, mail it back.
If you received direct deposit or already deposited the cheque, you can write a cheque to "Receiver General of Canada" and in the memo of the cheque indicate "Repayment of CERB" and your SIN#.
Mail your payment to:
Revenue Processing - Repayment of CERB
Sudbury Tax Centre
1050 Notre Dame Avenue
Sudbury ON P3A 0C3
I applied for EI after March 15th, but before the CERB applications opened on April 6th. Do I need to apply again?
No. If you applied for EI after March 15th your application will be transferred to the CERB system (but still processed by Service Canada). You can expect to receive $500 / week for the period of time during which you're eligible.
Do I still have to fill out my EI reports even though I've been receiving CERB payments? Do I have to re-apply every 4 weeks?
From what I can understand, there are 2 different processes depending on if you're processed by Service Canada (regular EI system) or CRA (those ineligible for EI).
You will need to stay up-to-date with your bi-weekly EI reports if you are receiving the CERB through Service Canada (shows on your bank statement as EI Emergency Response Benefit or something similar). I believe that this means you do NOT have to re-apply for CERB every 4 weeks, but there is still some confusion around that. If you fill out your EI reports but your payments stop arriving in your account, try calling the phone line (and please let me know their response!). If you need the cash, try re-applying through the CERB website for the next period and if you receive duplicate payments just make sure you don't spend it all.
If you you receive CERB from Canada Revenue Agency, there are no EI reports to fill out. You must re-apply every period (every 4 weeks) to attest that you're still eligible.
*If you have interacted directly with this system I super appreciate you sharing your stories. Your first-hand experience is a huge resource and great help to others. Thank you!
**Please keep in mind that this information is being released at a very rapid pace as the government tries to roll out programs that would normally take a year or more to implement. I do my best to offer the most up-to-date and accurate information, but there is always the possibility for error. For the most accurate information possible, always refer to the Government of Canada website.