What You Need to Know About The Canada Emergency Response Benefits (CERB)
ActionDignity Policy Brief, March 31, 2020
What You Need to Know About The Canada Emergency Response Benefits (CERB)
Name of Proposed Legislation: CERB – Emergency Response Benefit Act
The Government of Canada is taking strong, immediate and effective action to protect Canadians and our economy from the impacts of the global COVID-19 pandemic.
What to do if you’ve received two separate payments of $2000.
Bill C-13 – COVID-19 Emergency Response Act
- Guarantee the rapid implementation and administration of measures to protect Canadians’ health and safety and stabilize the Canadian economy.
- Government can do what it takes to support Canadians and Canadian businesses, and the economy as whole, in a timely way, today and in the future, as the situation continues to evolve.
Policy Goals:
- To support workers and help businesses keep their employees.
- Put money in the pockets of Canadians as fast as possible (timely access to income support)
- Augment the capacity of the EI system to process the high volume of applications received in the past weeks.
Policy Target: Workers and Employers
Features:
- Simpler and more accessible combination of the previously announced Emergency Care Benefit (ECB) & Emergency Support Benefit (ESB).
- CERB system does not replace the EI system. It enhances the capacity of the EI system. The CERB has also been better integrated with Employment Insurance to allow workers to apply for benefits through a single window.(see notes below on EI Implications)
- A taxable benefit of $2,000 per month for 4 months paid through the Canada Revenue Agency.
- CERB payment is every 4 weeks and available from March 15, 2020 until October 3, 2020.
- Online portal and application form opens on April 6, 2020. Receipt of CERB payments will be 10 days of application.
Beneficiaries:
Canadian workers who lose their income as a result of COVID-19, specifically those:
- Individuals who have lost their job.
- Individuals who are sick or quarantined.
- Individuals who are taking care of someone who is sick with COVID-19.
- Working parents who must stay home without pay to care for children who are sick or because of school and daycare closures.
- Wage earners who would not otherwise be eligible for EI.
- Contract workers who would not otherwise be eligible for EI.
- Self-employed individuals who would not otherwise be eligible for EI.
- Workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19 [Intent: help business keep their employees while ensuring ability to resume operations once pandemic is over].
Eligibility under CERB for those who do not qualify for EI:
Benefits will be available to workers living in Canada who are at least 15 years old and who:
- Have earned at least $5,000 in 2019 or in the year before their application from employment, self-employment, employment insurance maternity, and parental benefits.
- Are without income for at least 14 consecutive days in a 4-week period because of COVID-19, because they have temporarily stopped working, lost their jobs, are sick or in quarantine, or need to care for a child or a family member.
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Note: If you applied and received CERB income support payment
by mistake or it was determined later on that you did not qualify,
you will have to repay the amount without interest.
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EI Implications:
- If you are already receiving EI regular and sickness benefits as of March 25, 2020, you are not eligible to apply under CERB.
Exception: If you are already receiving EI but your benefits end before October 3, 2020, you can apply under CERB. Example: If your EI benefits will end on July 1, you can apply under CERB on July 2. Provided, you are still unemployed on July 2.
- If you have applied for EI and the application has not been processed yet, there is no need to re-apply for EI. Your claims will be automatically moved over to the CERB and you will receive the 16-week benefit.
- If you have applied and receive benefits under CERB for 16 weeks, and remains unemployed after this period, you can still access your regular EI benefits. For example, if you started receiving CERB benefits on May 1 and remains unemployed on August 24 (date around the 16-week mark), you can apply for your regular EI benefits after August 24.
CERB application will be based on birthdate:
If you are born in:
- Jan, Feb or March – apply on April 6
- April, May or June – apply on April 7
- July, August or September – apply on April 8
- October, November or December – apply on April 9
How to Apply:
- By accessing it on your My CRA Account secure portal for direct deposit option;
- By accessing it from your secure My Service Canada Account; or
- By calling a toll free number equipped with an automated application process. This will be provided once the toll number is announced.
For more extensive information on CERB: CERB BRIEFING_as_ of_07April 2020_MB_pdf
Sources: Canada Emergency Response Benefit
https://www.cbc.ca/news/politics/trudeau-income-supports-covid19-1.5509247
https://www.canada.ca/en/employment-social-development/services/my-account.html
www.canada.ca/coronavirus-cerb
For questions and support, please email Research.Policy.Educator@ActionDignity.org
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