From UFile's tax expert Gerry Vittoratos.
A new employment insurance benefit
The Canada Emergency Response Benefit (CERB) is a new taxable benefit that will provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. It replaces the Emergency Care Benefit and Emergency Support Benefit announced in the Economic Response Plan.
Who is eligible?
You are eligible for the CERB if you are:
Update: On April 15th the federal government announced the following changes:
For 2019, or within the 12 months preceding your application, you must have earned at least $5,000 in employment, self-employment, employment insurance (EI) or parental benefits. You must also be unemployed for at least 14 consecutive days within the four-week period in respect of which you apply for the benefit. During this four-week period, you will not be eligible for the benefit if you received income such as employment, self-employment, EI or parental benefits.
The benefit will not be paid to individuals who resign from their job voluntarily.
How much can you receive and for how long?
As mentioned above, the benefit amount will be $2,000 per month, or $500 per week. It will be paid for up to four months. The amounts received will be taxable for the 2020 tax year.
When and where can you apply?
The application process for the CERB will open in early April. The deadline to apply for this benefit is December 2, 2020. You can apply for the benefit through:
Payments for the CERB will be made within 10 days of submitting the application.
For more information on the CERB, and the Economic Response Plan, please consult the link below:
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