Overview

As a follow up to our communication in August on the proposed COVID-19 recovery programs, the federal government has passed the COVID-19 Response Measures Act, officially creating three new temporary recovery benefits. Additional details on each of the three recovery benefits are provided below.

Canada Recovery Benefit (CRB)

The new Canada Recovery Benefit will be effective from September 27, 2020 for one year and would provide a benefit amount of $500 per week for up to 26 weeks to workers who have stopped working and who are not eligible for EI, or had their employment/self-employment income reduced by 50% due to COVID-19.

The CRB would be available to residents in Canada who:

• Have a valid Social Insurance Number and are at least 15 years old
• Have been forced to stop working due to COVID-19 pandemic and are available and looking for work
• Are not eligible for Employment Insurance (EI) Benefits (for example, if they have exhausted EI benefits during COVID-19)
• Have not stopped working voluntarily
• Had employment or self-employment income of at least $5,000 in 2019 or 2020

Individuals would be able to earn income from employment and/or self-employment while receiving the benefit, as long as they continue to meet all other requirements. However, claimants would need to repay some or all of the CRB benefit through their income tax return if their annual net income, excluding the CRB, is over $38,000 for 2020. The rate of CRB repayment will be at 50 cents for every dollar earned above $38,000. The CRB will be subject to 10 per cent withholding tax at source.

Applications for the CRB will available on October 12 on CRA My Account service.

Canada Recovery Sickness Benefit (CRSB)

The CRSB provides income support for workers that are sick or must self-isolate due to COVID-19. The benefit will provide $500 per week for up to two weeks and cannot be received while claimants are also taking paid sick leave. Claimants would need to have missed a minimum of 50% of their scheduled work in the week because they contracted COVID-19, self-isolated for reasons related to COVID-19, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19. The CRSB will be available September 27 and will be paid in arrears.

The benefit would be available to claimants who:

• Have a valid Social Insurance Number and are at least 15 years old
• Were employed or self-employed at the time of the application; and
• Had employment or self-employment income of at least $5,000 in 2019 or 2020

Claimants would apply after the one-week period in which they are seeking income support and attest that they meet the requirements. The CRSB benefit will be subject to a 10 per cent withholding tax at source.

Application for the CRSB benefit is now available on CRA My Account service.

Canada Recovery Caregiving Benefit (CRCB)

The CRCB is a temporary program for workers who must miss work to care for a child under the age of 12, a family member or dependent because schools, daycares or day program facilities are closed due to COVID-19. This benefit offers $500 per week for up to 26 weeks per household. It may be shared, but only one member of a household at any time can receive the benefit at a time. Workers who prefer to keep dependents at home when facilities are open are not entitled to the benefit, which is effective September 27 and paid in arrears too.

In order to be eligible for the Canada Recovery Caregiving Benefit, individuals would need to:

• reside in Canada;
• be at least 15 years of age on the first day of the period for which they apply for the benefit;
• have a valid Social Insurance Number;
• be employed or self-employed on the day immediately preceding the period for which the application is made;
• have earned at least $5,000 in 2019 or in 2020;
• have been unable to work for at least 50% of their normally scheduled work within a given week because of one of the following conditions:
  • they must take care of a child who is under 12 years of age on the first day of the period for which the benefit is claimed:
    • because their school or daycare is closed or operates under an alternative schedule for reasons related to the COVID-19 pandemic;
    • who cannot attend school or daycare under the advice of a medical professional due to being at high risk if they contract COVID-19; or
    • because the caregiver who usually provides care is not available for reasons related to the COVID-19 pandemic; or
      
  • they must provide care to a family member with a disability or a dependent:
    • because their day program or care facility is closed or operates under an alternative schedule for reasons related to COVID-19;
    • who cannot attend their day program or care facility under the advice of a medical professional due to being at high risk if they contract COVID-19; or
    • because the caregiver who usually provides care is not available for reasons related to the COVID-19 pandemic;
• not be in receipt of paid leave from an employer in respect of the same week; and
• not be in receipt of the CERB, the EI Emergency Response Benefit (ERB), the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, short-term disability benefits, workers’ compensation benefits, or any EI benefits or Quebec Parental Insurance Plan (QPIP) benefits in respect of the same week.

The CRCB benefit will be subject to a 10 per cent withholding tax at source.

Application for the CRCB benefit is now available on CRA My Account service.