The federal government announced significant changes to the Canada Emergency Response Benefit (CERB) and the Employment Insurance (EI) programs.
CERB will be extended by an additional four weeks, to a new maximum of 28 weeks, and will be available until September 27, 2020. At that time, recipients in continued need of support will move to EI or other programs. In addition, EI has been revised to only require 120 hours of insurable work.
EI premiums paid by employees and employers will also be frozen at their current level for two years.
The government has also proposed the creation of three new benefits, for those who are self-employed or in contract work and not eligible for EI. These new benefits are subject to new legislation being passed, at a future date.
- Canada Recovery Benefit (CRB) for workers who are self-employed or are not eligible for EI and cannot resume work. The CRB will provide $400 per week for up to 26 weeks. Workers will need to repay $0.50 of every dollar earned above an annual net income of $38,000 through their income tax return.
- Canada Recovery Sickness Benefit (CRSB) will be provided to workers who are ill or who must self-isolate for reasons related to COVID-19. The CRSB will provide $500 per week for up to two weeks.
- Canada Recovery Caregiving Benefit (CRCB) will be given to workers who are unable to work because they are caring for a child, dependent or family member because schools or daycares are closed due to COVID19. The CRCB will provide $500 per week for up to 26 weeks per household.
HGA will continue to update our COVID-19 resource centre with information about government benefits and programs and more information is released.
You can find our resource centre here. If you have any questions, please contact your HGA Advisor or info@hgacpa.com.
