(613) 324-0158 info@balance-financial.ca

On October 2, 2020, the Federal Government updated its COVID-19 Economic Response Plan. Below are some details of these changes as they apply to individual Canadians.

The most significant change to the plan is the replacement of the Canada Emergency Response Benefit (CERB) with three new programs:

  • The Canada Recovery Benefit (CRB)
  • The Canada Recovery Sickness Benefit (CRSB), and
  • The Canada Recovery Caregiving Benefit (CRCB)

The Canada Recovery Benefit

  • For employed and self-employed individuals whose income is directly affected by Covid-19 but who are ineligible for Employment Insurance
  • Provides $1000 for a two-week period
  • Individuals may apply for up to 13 eligibility periods, or 26 weeks, between September 27, 2020 and September 25, 2021
  • Employment or self-employment income is permitted; however, $0.50 of every dollar earned over $38,000 (excluding CRB) in a calendar year would have to be reimbursed
  • CRA will withhold 10% tax at source, so net payment is $900
  • Applications begin on October 12, 2020

The Canada Recovery Sickness Benefit

  • Income support for employed or self-employed individuals who are unable to work because they are sick or need to self-isolate due to Covid-19
  • Provides $500 per week for up to two weeks between September 27, 2020 and September 25, 2021
  • CRA will withhold 10% tax at source, so net payment is $450
    Individuals may apply immediately

The Canadian Response Caregiving Benefit

  • Income support for employed or self-employed individuals who are unable to work because they must care for a child under the age of 12 or a family member who needs supervised care
  • Eligible households may receive $500 per week for a maximum of 26 weeks between September 27, 2020 and September 2, 2021
  • CRA will withhold 10% tax, so net payment is $450
  • Individuals may apply immediately

It is important for recipients of these benefits to understand that, even though the CRA is withholding 10% tax on all payments, additional income tax on these benefit payments may be payable.

Continuing benefits include:

  • Employment Insurance (EI)
  • Canada Emergency Wage Subsidy (CEWS)

Please contact us at 613.324.0158 or info@balance-financial.ca for more information and advice, or visit the Government of Canada web site.