CRB - Canada Recovery Benefit - Details & Discussion

[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)

[Anna Michele]

Ty

Sent from my SM-A705W using Tapatalk

[Ciel]

I am curious about the program.

I saw Inside Edition's repeat airing of the program that indicates that the US $600 fed aid per week program(in addition to whatever each state provides weekly to eligible residents) is about to stop but the replacement program is still being argued over by the two parties in Congress. That arguing is not going to help US residents who need the money for survival--nothing means lots will be out of house and more.

[tjthemanto]

I am curious about the program.

I saw Inside Edition's repeat airing of the program that indicates that the US $600 fed aid per week program(in addition to whatever each state provides weekly to eligible residents) is about to stop but the replacement program is still being argued over by the two parties in Congress. That arguing is not going to help US residents who need the money for survival--nothing means lots will be out of house and more.

Plus lot of
Moratorium programs like deferred mortgages, property taxes, utilities bills, loans etc are coming to an end now. Banks and Insurance companies and Cities had deferred them for 6 months.

Now all of them are coming due with accrued compound interest. No jobs, no income, no CERB and very soon all deferred accumulated bills coming due!

[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]

New CERB transition plan for people who don't qualify for EI should be out soon. Millions of Current CERB recipients don't qualify for regular EI and don't have jobs either, so the transition plan will in place.

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

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

[tjthemanto]

CERB has been extended by 4 more weeks.

So now you can get ALL 7 pay periods, not just 6 out of 7 like earlier.

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

[tjthemanto]

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.

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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.

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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.

[Ciel]

I heard third-hand about something going on in retail-some staff are actually telling their managers not to schedule them for more than 14 hours in a week so they can keep claiming CERB. But stores are scheduling people for more hours as stock comes in and the stores stay open. Managers ought to push back clearly-either work the scheduled hours or find another job.

[tjthemanto]

What happens to the people on CERB who applied through CRA.

Do they get automatically get converted to this new transition benefit after September 27?

Or do they HAVE to create a Service Canada or EI account and reapply through Service Canada/EI for the transition program?

Or will CRA have some option to apply to transition from the
Current CERB to the new transition program.

[Anna Michele]

What happens to the people on CERB who applied through CRA.

Do they get automatically get converted to this new transition benefit after September 27?

Or do they HAVE to create a Service Canada or EI account and reapply through Service Canada/EI for the transition program?

Or will CRA have some option to apply to transition from the
Current CERB to the new transition program.

Likely a completely separate program since you have to apply for cerb every new cycle

Sent from my SM-A705W using Tapatalk

[tjthemanto]

New details seem to be out. A bit more updated & clear than before.

https://www.canada.ca/en/employment-...its.html#anch1

[tjthemanto]

From TORONTO STAR -:

CERB ends Oct. 3 — here’s how to find out whether you’ll get EI, and how much you’ll get

[COLOR=var(--emphasis-color)]ROSA SABA SEPTEMBER 24, 2020[/COLOR]
Rosa SabaAfter helping millions of Canadians who lost income due to the pandemic, the Canada Emergency Response Benefit (CERB) is coming to an end.
On Sept. 27, a (temporarily) new-and-improved Employment Insurance program will catch around half of Canadians currently on CERB, while a suite of temporary benefits will aim to catch at least some of those who don’t currently qualify for EI.
If you’re confused about how to transition from CERB to EI, how to apply for the three new temporary benefit programs and how much you’ll get when you do, read on. We’ve got answers.
[COLOR=var(--emphasis-color)]If you’re on CERB and think you qualify for EI[/COLOR]
More than 2 million people currently on CERB will be eligible for EI, according to an analysis by the Canadian Centre for Policy Alternatives — in part because the government is allowing one-time hours-worked credits so that the minimum insurable hours to qualify are only 120. The minimum weekly payout has been raised to $500, so you’ll receive at least as much as you did on CERB, if not more.
And since CERB is taxable but EI is taxed at the source, the EI payment is higher than it looks for most people — you don’t need to pay back any EI come tax season.
If you’re on CERB, you should first figure out whether you’re eligible for EI. You’ll need a record of employment from your previous employer, and at least 120 hours of work to qualify.
If you believe you’re eligible for EI, the next step is to find out whether you’ll be automatically transferred over. If you’ve been receiving CERB through Service Canada, the process should be seamless, provided the system can handle it. But if you’ve been receiving CERB through the Canada Revenue Agency (CRA), you will have to apply for EI, which is administered through Service Canada.
One of the biggest differences between CERB and EI is that you’ll have to self-report every two weeks, said Barry Choi, a personal finance and travel expert — you need to be prepared to continually update your claim to keep receiving money.
If you are applying for EI, Choi recommends applying right away. Your first EI payment generally takes a couple of weeks, he said (though it could take longer).
Unlike CERB, “EI does take time,” he said. “Don’t assume things will be automatic.”
And if your application doesn’t seem to be moving, be proactive — call and check on it, said Choi.
Janet Gray, an Ottawa-based certified financial planner with national firm Money Coaches Canada, recommends having a contingency plan in case your money doesn’t arrive right away. And if you have any doubt about whether you’re eligible for EI, it’s best to call Service Canada and ask.
But “be prepared to sit on the phone,” she said.
Unlike CERB, you’ll need a record of employment (ROE) for EI to prove you’ve been laid off. Choi recommends checking your ROE to make sure it’s accurate, as errors or omissions — for instance if it doesn’t specify that you were laid off rather than terminated for cause — could prevent you from getting EI.
[COLOR=var(--emphasis-color)]If you’re on CERB and don’t qualify for EI[/COLOR]
If you don’t qualify for EI — and almost 2 million of those currently on CERB do not — don’t despair. You may be eligible for one of the three temporary benefits, which will be available for a year. Each one pays out for up to 26 weeks.
The $500-per-week Canada Recovery Benefit is meant to cover gig, freelance and contract workers who don’t qualify for EI. It previously paid $400 a week, but the Liberals bumped the amount up on Thursday.
The $500-per-week Canada Recovery Caregiving Benefit is for those caring for dependants and therefore can’t work.
And there’s a $500-per-week Canada Recovery Sickness Benefit for those with COVID-19, or who are self-isolating due to symptoms of or exposure to COVID-19.
All three will be administered through the CRA, and are on an attestation basis, meaning unlike EI, you don’t need an ROE to qualify — much like CERB.
More details on how these programs are administered is forthcoming, but the application process will likely be similar to CERB: through CRA, and simpler and faster than EI.
[COLOR=var(--emphasis-color)]Other support available, and who’s left out[/COLOR]
You can still apply for CERB retroactively until the beginning of December, covering until Oct. 3.
There is also a lesser-known program called Working While on Claim. This program is for people who have resumed working, but at a lower wage than before they lost work.
It’s administered through Service Canada, and is technically part of the EI program.
According to the Canadian Centre for Policy Alternatives, 482,000 former CERB recipients won’t be eligible for EI or the new benefits. This group will mostly be low-wage workers who make less than $1,000 monthly but who have technically returned to their pre-pandemic hours.
[COLOR=var(--emphasis-color)]Planning for the future[/COLOR]
Like CERB, the new recovery benefits are taxable. Also like CERB, if it later turns out that you didn’t qualify for a benefit you received, you will be made to pay back any money you received next spring during tax season. In addition, if you get the recovery benefit, some of the money you receive will be clawed back if you make $38,000 or more in 2020 (the $38,000 total includes CERB payments but excludes the recovery benefit).
Because of all these contingencies, Gray recommends setting aside 20 to 25 per cent of your income if possible, or more.
As well, she said it’s important to make sure your benefits don’t overlap — for example, you can’t receive the sickness benefit while also getting paid sick leave from your employer.
“If you are still getting some assistance from your employer, you may not be eligible for some of these other benefits,” she said.
Choi said while it’s important to prepare for tax season, if all your money is going toward costs you can’t avoid, that’s OK, too.
“Sometimes you’ve just got to worry about what’s going on right now,” he said.

[tjthemanto]

Canada Recovery Benefit - CRB - application starts on
Monday, October 12.

Check CRA site for the details.

Not sure if yoh do need a Service Canada account to apply, or CRA account is enough, like for CERB, you could apply from either or.

CRB should be the same.