CoVid - Applying for the NEW emergency fund for laid off people & others.

[tjthemanto]

About 10 days left for the SIXTH payment period to start. I guess by then most people will be forced back to work and most won't qualify.

Phase 3 re-opening seems to have started in most places.

[tjthemanto]

New benefits program being launched, when CERB gets over and you are still unemployed, but DON'T qualify for regular EI.


https://forum.smartcanucks.ca/438825...g-soon-canada/

[lizzie bargain]

I just received my last CERB today-I will be back working 3 days per week by the end of the month so it worked out just right for me.

[tjthemanto]

I just received my last CERB today-I will be back working 3 days per week by the end of the month so it worked out just right for me.

Depending on what the new EI transition program is and how much they allow you to earn, you might still receive some partial payment from the new EI program, if your income is below that threshold.

Some programs I know they cut $ 1 for every $ 2 you make, but you still get something from the program + your employment income, so you still come out ahead and there is more incentive to work.

[lizzie bargain]

I would be very surprised if I got any more-but you never know. I have no complaints about what I did receive upon being laid off.

[tjthemanto]

Today's Toronto Star article :

On CERB and concerned about the move to EI next month? Here’s what we know so far

[COLOR=var(--emphasis-color)]ROSA SABA AUGUST 07, 2020[/COLOR]
Rosa SabaAs laid-off Canadians receive their last payments from the Canada Emergency Response Benefit (CERB), many are wondering whether the government’s promised changes to the Employment Insurance (EI) program will be enough to keep them afloat.
Those who have been continuously getting payments since March will see their benefits end as of August 29. Here are the answers to a few questions Canadians may be asking about the switch from CERB to EI, and where it leaves them.
[COLOR=var(--emphasis-color)]Will I get less money on EI than on CERB?[/COLOR]
Under the current structure of the EI program, most Canadians will get less than the $2,000 a month provided by CERB, said David Macdonald, a senior economist with the Canadian Centre for Policy Alternatives.
In a virtual press conference Thursday hosted by the Labour advocacy group Workers Action Centre, Macdonald said a handful of people will get more than CERB, but most will get significantly less if changes aren’t made to the percentage of lost income EI provides.
Currently, EI provides 55 per cent of a worker’s average insurable earnings, to a maximum of $573 per week.
[COLOR=var(--emphasis-color)]Will everyone be able to get EI?[/COLOR]
Toronto labour lawyer John Hyde said while the government has promised to add an EI program for gig workers and contract workers, and relax the eligibility rules for EI, some Canadians will likely still be left behind.
“I suspect that it won’t cover everybody. And I suspect they won’t get it right the first time,” he said, adding that he foresees a “multitude of changes” to the EI program before it covers everyone as promised.
Macdonald said many workers who were able to get CERB will not be eligible for the current EI program if they haven’t worked enough hours. As well, he said workers who haven’t technically been laid off but who have had their hours cut could fall through the cracks because the EI program requires a record of employment to prove a person has lost their job.
[COLOR=var(--emphasis-color)]How can I prepare for what’s coming?[/COLOR]
Hyde said weathering the switch from CERB to EI will be problematic for those who don’t have savings, or who may not qualify for EI. All they can do right now is manage their budgets as best they can and pay attention as more information comes out from the government.
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The government has promised some changes to the EI program, with more details to come at the end of August, such as relaxed eligibility rules.
“They haven’t given us enough information at this point in time to know the mechanics of this process, and I’m hoping that their statement as to the increased simplicity and the inflexibility will come to fruition, because it’s certainly necessary,” Hyde said. “The majority of people who are in receipt of CERB actually need it, and they need it quickly.”

[tjthemanto]

CERB to EI transition:

https://globalnews.ca/news/7268369/c...ransition/amp/

[tjthemanto]

I hope they make it 7/7 and not 6 out of 7 payment periods.

Otherwise this month will be the last month for CERB recipients, who started right from first payment period.

Aug 2, 2020 to August 29, 2020.
Aug 30, 2020 to Sep 26, 2020.

[tjthemanto]

Liberals plan to use regulations to create income support after CERB winds down.

https://www.thestar.com/business/202...estar_business

[tjthemanto]

Looks like CERB has been extended by 4 more weeks. So now 7 out of 7 periods!

https://www.canada.ca/en/revenue-age...-with-cra.html

[tjthemanto]

https://www.canada.ca/en/services/be...plication.html


Extra 4 weeks available –

CERB extended from 24 weeks to 28 weeks for workers who:

• stopped working due to COVID-19 or
• are eligible for Employment Insurance regular or sickness benefits or
• have exhausted their Employment Insurance regular benefits or Employment Insurance fishing benefits between December 29, 2019 and October 3, 2020.

[tjthemanto]

New CERB transition program details

CERB transition program below:

https://www.canada.ca/en/employment-...-benefits.html

Canada Recovery Benefit
The new Canada Recovery Benefit would be effective from September 27, 2020 for one year and would provide a benefit amount of $400 per week for up to 26 weeks to workers who are not eligible for EI, mainly the self-employed and including those working in the gig economy. These individuals may still require income support if they continue to be unable to return to work due to COVID-19 or had their income reduced relative to pre-COVID-19 pandemic (attestation-based).
The benefit would be available to residents in Canada who:

• are at least 15 years old and have a valid Social Insurance Number (SIN);
• have stopped working due to the COVID-19 pandemic and are available and looking for work; or are working and have had a reduction in their employment/self-employment income for reasons related to COVID-19;
• are not eligible for Employment Insurance;
• had employment and/or self-employment income of at least $5,000 in 2019 or in 2020; and,
• have not quit their job voluntarily.

Workers would apply after every two-week period for which they are seeking income support and attest that they continue to meet the requirements. In order to continue to be eligible for the benefit the claimant wound need to look for and accept work when it is reasonable to do so. The benefit is taxable.

To encourage claimants to return to work, they would be able to earn income from employment and/or self-employment while receiving the benefit, as long as they continue to meet the other requirements. However, to ensure that the benefit targets those who need it most, claimants would need to repay some or all of the benefit through their income tax return if their annual net income, excluding the Canada Recovery Benefit payment, is over $38,000. In other words, claimants would need to repay $0.50 of the benefit for each dollar of their annual net income above $38,000 in the calendar year to a maximum of the amount of benefit they received.

This means that for a worker who received 10 weeks of the Canada Recovery Benefit in 2020 for a total of $4000, they would have to repay all of the benefit if their net income exceeded the threshold by $8000 (twice the benefit payment amount). In this example, the worker would have to repay the full benefit amount if their net income was greater than $46,000 (not including the Canada Recovery Benefit) in 2020.

The Government of Canada intends to introduce legislation to support the delivery of the new recovery benefits.

-------------------------------------------------------------------------------------------------------------------------------------------------------Canada Recovery Benefit scenario: self-employed workerSelf-employed worker whose business is affected by the COVID-19 pandemic

• Ibrahim is a self-employed bookkeeper in Toronto, ON
  
• He earned $34,000 in 2019 but his business has slowed due to COVID-19.
  
• Ibrahim applied for and received the Canada Emergency Response Benefit (CERB) but his benefits will run out in September.
  
• While his business has begun to rebound, it is still not business as usual and he is only back to working at 40% capacity.

What could Ibrahim qualify for?

• With the Canada Recovery Benefit, he could receive $400 per week for up to 26 weeks. If his annual net income for 2020 is above $38,000 (excluding the Canada Recovery Benefit payments), he would need to repay some or all of the benefit when he files his annual income tax return for 2020.

-------------------------------------------------------------------------------------------------------------------------------------------------------

Canada Recovery Sickness Benefit
The new Canada Recovery Sickness Benefit would provide $500 per week, for up to two weeks, effective September 27, 2020 for one year, for workers who are unable to work because they are sick or must self-isolate due to COVID-19. This new benefit would fulfil the Government of Canada’s commitment as part of the Safe Restart Agreement with provinces and territories to provide up to two weeks of sick leave to all Canadians in the context of COVID-19.

The benefit would be available to:

• Residents in Canada who are at least 15 years of age and have a valid Social Insurance Number (SIN);
• Workers employed or self-employed at the time of the application; and
• Workers who earned at least $5,000 in 2019 or in 2020.

Workers would not be required to have a medical certificate to qualify for the benefit. Workers could not claim the Canada Recovery Sickness Benefit and receive other paid sick leave for the same benefit period. Workers would need to have missed a minimum of 60% of their scheduled work in the week for which they claim the benefit.

Workers would apply after the one-week period in which they are seeking income support and attest that they meet the requirements. The benefit would taxable.

-------------------------------------------------------------------------------------------------------------------------------------------------------Canada Recovery Sickness Benefit scenario: two weeks of paid leaveMinimum wage worker needs to self-isolate due to COVID-19

• Anita is working in a small grocery store in Saskatoon, SK and earns about $35,000 a year
  
• She has been working throughout the COVID-19 pandemic.
  
• She just found out she must self-isolate for 14 days as a family member has tested positive for COVID-19.

What could Anita qualify for?

• With the new Canada Recovery Sickness Benefit, Anita may be eligible to receive $500 per week, for up to two weeks provided that she is not in receipt of paid leave from her employer.

-------------------------------------------------------------------------------------------------------------------------------------------------------

Canada Recovery Caregiving Benefit
The new Canada Recovery Caregiver Benefit, would be effective from September 27, 2020 for one year, and provide $500 per week, for up to 26 weeks per household to eligible Canadians.

The closure of schools and other daycare and day program facilities to prevent the spread of COVID 19 has meant that many Canadians have been unable to work because they needed to provide care to children or support to other dependents who had to stay home. While it is anticipated that facilities will gradually re-open as the economy restarts, the Government of Canada recognizes that access may vary over time and across communities. The Government is committed to ensuring that parents and others with dependents do not need to choose between caring for them and paying the bills.

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 60% 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.

Workers would apply after the period in which they are seeking income support and attest that they meet the requirements. Two members residing in the same household could not be in receipt of the benefit for the same period. The benefit is taxable.

-------------------------------------------------------------------------------------------------------------------------------------------------------Canada Recovery Caregiving Benefit scenario: school closureSingle father with one child (employed and earns $48000 / year)

• Steve is a single father in Cranbrook, BC with a daughter aged 8.
  
• He earns $48,000 per year.
  
• His daughter’s school had to close for four weeks beginning October 25th due to a COVID-19 outbreak. Steve arranged with his employer to take unpaid leave from work as he doesn’t have anyone else who can take care of his child.

What could Steve qualify for?

• Steve could apply for the Canada Recovery Caregiving Benefit after each week of leave he takes to provide care for his daughter.
  
• He could receive $500 per week, in total $2000 for the period that the school is closed.

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How to apply
Canadians already receiving benefits through Service Canada will be transitioned to the EI program once they have received the maximum CERB benefits for which they are entitled, if they are EI eligible and continue to need income support.

Canadians who are currently receiving the CERB from the Canada Revenue Agency (CRA) who believe they are entitled to EI will need to apply through Service Canada after September 26.

The Canada Revenue Agency (CRA) would administer the Canada Recovery Benefits, and Canadians would be able to apply through the CRA. In the coming weeks, the CRA will provide more details on how and when Canadians can get ready to apply at www.canada.ca/coronavirus.

[tjthemanto]

CRA & COVID-19

(How to Report Covid related benefits on your Tax return.)

T4A slips for 2020 tax year:

You will get a T4A slip from the CRA, if you received any of the COVID-19 emergency or recovery benefits from the CRA before December 31, 2020:

• Canada Emergency Response Benefit (CERB) with the CRA
• Canada Emergency Student Benefit (CERB)
• Canada Recovery Benefit (CRB)
• Canada Recovery Caregiving Benefit (CRCB)
• Canada Recovery Sickness Benefit (CRSB)

Quebec residents will get both a T4A and RL-1 slip.
The CRA will provide T4A slips starting in January 2021. You should receive your T4A slip before March 10, 2021.
The COVID-19 benefit payment amounts on your T4A slip are taxable and must be reported as income on line 13000 of your 2020 income tax and benefit return.
You did not receive a T4A slip

If you received COVID-19 benefit payments in 2020, you should receive your T4A slip before March 10, 2021. You may also get your T4A information from CRA My Account.
After March 10, 2021, if you still do not have your T4A slip information, contact the CRA.
Situations where you would not get a T4A slip:

• If you applied for the CERB with Service Canada or any Employment Insurance (EI) benefit payments, you will receive a T4E slip.
• If your employer received the Canada Emergency Wage Subsidy (CEWS) to cover part of your wages, the income you earned will appear on your regular T4 slip.

Issues with your T4A slip

Each COVID-19 benefit will have its own box number (Box 197 to 204) on your T4A slip. If you received more than one benefit with the CRA in 2020, check that each amount you received or repaid is correct.
To confirm the COVID-19 benefit amounts you received, you can review “COVID-19 Support Payment Application Details” in CRA My Account.
Call the CRA right away if:

• Your T4A slip shows incorrect amounts
• You repaid benefit amounts before December 31, 2020, but the repayments are not reflected
• Your T4A slip shows incorrect personal information
• You did not apply for a COVID-19 benefit, but received a T4A slip

Telephone number: 1-800-959-8281(opens up phone application)
How to report T4A amounts on your tax return

You will need to enter all COVID-19 benefit amounts you received (Box 197 to 204) from your T4A slip and provide the total amount on line 13000 - Other income of your 2020 income tax and benefit return.
If you received a CRB, CRCB or CRSB, the CRA withheld a 10% tax at source on each payment. In addition to reporting the amounts on line 13000, you need to report the income tax deducted.
You can find the income tax deducted at source in Box 022 of your T4A slip. Enter this amount on line 43700 - Total income tax deducted on your 2020 income tax .

[tjthemanto]

If anyone gets CERB or CRB - T4 slip in mail or in Online CRA My account - please let us know.

[tjthemanto]

The Covid government related T4A slip will be like this:

The T4A will have specific boxes for the various benefits which needs to be reported on line 13000 - Other Income in the tax return.

• Box 197 – Canada Emergency Response Benefit (CERB)
• Box 198 – Canada Emergency Student Benefit (CESB)
• Box 199 – Canada Emergency Student Benefit (CESB) for eligible students with disabilities or those with children or other dependents
• Box 200 – Provincial/Territorial COVID-19 financial assistance payments
• Box 202 – Canada Recovery Benefit (CRB)
• Box 203 – Canada Recovery Sickness Benefit (CRSB)
• Box 204 – Canada Recovery Caregiving Benefit (CRCB)