Canada Emergency Response Benefit (CERB)
The goal of this post is to provide you with a single source which summarizes the support available to you, your loved ones and your business during this time of uncertainty. When you are trying to find or recall specific information you can come back to these page and have one place where you'll find details, helpful links, and support.
This post is an in-depth look at the Canada Emergency Response Benefit that covers support for individuals. If you are looking for details about support for businesses, click here.
If any of your questions are not answered below, please email me. I may not respond individually, but I will compile a FAQ follow-up, to answer everyone's questions at once.
Canada Emergency Response Benefit (CERB)
What is the CERB?
A temporary income support provided by the Government of Canada, consisting of a flat-rate benefit of $2,000 / month for up to 4 months (16 weeks), to individuals who have lost their income due to effects of COVID-19
The benefit can be back-dated to March 15th.
You are eligible to receive the CERB if you:
are a resident in Canada
are at least 15 years of age on the date of application
had income of $5,000 or more in the last 12 months or in the year 2019.
have lost your income because of COVID-19 and did not voluntarily quit your job
Specific eligibility when applying:
You will be asked to verify that you are or expect to be without income for at least 14 consecutive days in the initial four-week period of applying
You will have to re-apply and confirm your eligibility every 4 weeks that you expect to have no income, in order to continue receiving the benefit, for up to 4 months
Beginning April 6th applications will be available:
Online with CRA My Account
Over the phone with automated service: 1-800-959-2019
If you don't have a CRA account you can register online, but it can take up to 10 days to be activated. In this case, it may be faster to apply by phone
If you have a My Service Canada account, you don't need to register for CRA online; you can login to My Service Canada and click "Switch to Canada Revenue Agency" to access the CERB application
If you do have access online, set-up your direct deposit information in advance. Payments by direct deposit will take 3-5 days. Payments by cheque will take 10 days.
FAQs
I am eligible for regular EI benefits. Should I apply for the CERB?
Prior to April 6th, if you are without work and eligible for EI you can continue to apply through regular the Employment Insurance program
Once the CERB system opens on April 6th, all EI applications filed after March 15th will automatically be transferred to the new CERB system
On April 6th or later, even if you are normally eligible for EI, you should apply through the CERB system (as long as you are eligible for the CERB)
If you are not eligible for the CERB, but eligible for other regular EI benefits (i.e. parental leave, work-sharing), continue to apply through the regular EI program
What can I do before April 6th to make the process faster?
Check your access to your CRA My Account online
Update your direct deposit info & mailing address with CRA
Have your social insurance number (SIN) and postal code on-hand if you plan to apply over the phone
What types of income are used to measure the $5,000 minimum requirement?
employment
self-employment
maternity & parental benefits under the EI program (or similar program in Quebec)
I've heard this benefit is taxable. What does that mean?
It means the total amount of benefits you receive ($2,000 / month for up to 4 months) will be included in your 2019 taxable income, when you file your tax return in 2020.
I'm going to have to pay tax to the government, on money I received from the government?! That's inefficient!
It may seem ridiculous at first, but it actually makes sense in the context of the Canadian tax system. The higher your income in a given year, the higher your tax rate could be, and visa-versa. So for those with lower income, possibly below the basic income threshold, it's possible you would owe little-to-no tax on the CERB. This way, folks with higher income in 2019 who qualified for the CERB, will pay a higher tax rate on that income.
There are going to be a ton of people applying for this all at once. Won't the system be overloaded?
Yes. The CRA is trying to avoid this by implementing staggered application dates, by birth-month. If you were born in. Moving forward, they ask that you continue to apply on the day of the week allocated to your birth-month. Fridays, Saturdays and Sundays are open for applications to anyone.
Jan, Feb, Mar - Apply Monday, April 6th
Apr, May, Jun - Apply Tuesday, April 7th
Jul, Aug, Sept - Apply Wednesday, April 8th
Oct, Nov, Dec - Apply Thursday, April 9th
I earned income in March, but don't expect to for at least the next few months. Can I still receive all 4 months?
If you received income between March 15th and April 11th, your first benefit period would begin April 11th. You can continue to re-apply for a total of 4 months, up to October 3rd, 2020.
This means if you are paid in March & April, but lose your income in May, you could apply to receive the benefit from May through August.
I haven't filed my taxes for 2019 (or longer). Will I need to do that in order to prove the $5,000 minimum income to be eligible?
No, as far as I can tell. This is an automated system where they are trying to get money into people's bank accounts as fast as possible. There will be little-to-no verification or oversight during the application process and they are relying on the honour system and the knowledge that most residents of Canada really do need this assistance right now.
Do I need to be laid-off or have an ROE from my employer to apply?
No. In fact, you can technically still be employed but be receiving zero income / working zero hours, and you would still be eligible. The government has made it clear that this initiative is also meant to help employers maintain relationships with their employees, even while being unable to pay them.
I still have questions. Where should I look?
I highly recommend checking out this website. If you still have questions after reviewing it, please reach out to me and I'll do my best to find answers for you.