CANADA EMERGENCY RESPONSE BENEFIT (CERB)
- $500 weekly – maximum of 16 weeks
- Retroactive to Mar. 15, 2020
- Available between Mar. 15 and Oct. 3, 2020
- Must be 15 and Canadian resident
- Must have declared $5,000 total income in preceding 12 months or in 2019 (including by self-employment)
- 7, 4-week eligibility cycles or claiming periods
- Does not need to be consecutive claiming periods – maximum of 16 weeks (4 months) in total during entire period of program
- Taxable benefit (not deducted at source; must be claimed in next personal income tax filing)
- When first applying, cannot earn more than $1,000 from other sources for 14 or more consecutive days within the 4-week claim period
- For future claim periods, cannot earn more than $1,000 income during the claim period
- Cannot qualify if laid off, but earns income from other work or on reduced hours
- Cannot voluntarily withdraw or quit – must qualify for an approved statutory leave of absence under the Employment Standards Act or work disruption must be related to COVID-19
- Cannot be topped up by employers, unless the top up is not more than $1,000 in any 4-week claim period
- Replaces EI regular benefits if unemployment occurs on or after Mar. 15, 2020
- Not EI
- Can collect CERB without affecting future EI benefit eligibility
- Note: payment of accrued vacation time if a lay off or termination could disqualify CERB (if more than $1,000 within 14 days before initial application or during the subsequent claim period)
- Note: if recalled during a CERB claim period, resulting in income more than $1,000, may be required to repay the CERB during that claim period
Examples:
- Salaried employee (including self-employed) – eligible if stops working for reasons related to COVID-19 (also eligible for CEWS and CEBA)
- Sole proprietor – eligible of stops working for reasons related to COVID-19 (not eligible for CEWS or CEBA)
- Own a corporation and paid by dividends, not salary – eligible of stops working for reasons related to COVID-19 (not eligible for CEWS or CEBA)
EMPLOYMENT INSURANCE (EI)
- Can continue to work/earn income without disqualifying for EI
- Can keep up to $0.50 of EI for each dollar earned – maximum is 90% of weekly insurable earnings used to calculate EI benefit
- If more, EI deducted dollar-for-dollar against other income source
- Means employers can gradually recall employees (including part-time) without disqualifying EI benefits for those recalled
