Government Programs

On February 19, Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion, announced the government will introduce regulatory and legislative amendments to increase the number of weeks of benefits available for the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), the Canada Recovery Caregiving Benefit (CRCB) and Employment Insurance (EI) regular benefits.

The proposed changes would:

• increase the number of weeks available under the Canada Recovery Benefit (CRB) and the Canada Recovery Caregiving Benefit (CRCB) by 12 weeks extending the maximum duration of the benefits through regulation from 26 weeks to up to 38 weeks

• increase the number of weeks available under the Canada Recovery Sickness Benefit (CRSB) through regulation from the current 2 weeks to 4 weeks

• increase the number of weeks of EI regular benefits available by up to 24 weeks to a maximum of 50 weeks through legislation, for claims that are made between September 27, 2020 and September 25, 2021.

• In addition, self-employed workers who opted in to the EI program to access special benefits would be able to use a 2020 earnings threshold of $5,000, compared to the previous threshold of $7,555. This change would be retroactive to claims established as of January 3, 2021 and would apply until September 25, 2021

To ensure employees in the federally regulated private sector can access the proposed additional weeks of CRCB and CRSB without the risk of losing their jobs, the maximum length of the leave related to COVID-19 under the Canada Labour Code would also be extended.

Provincial and territorial governments will determine whether they need to amend their job-protected leaves in order to facilitate employees’ access to the proposed additional weeks of CRSB and CRCB benefits.

Application for the recovery benefits will continue through the Canada Revenue Agency and for EI benefits through Service Canada.

NOTE: the legislation must receive Royal Assent before the proposed extensions can be implemented.

Government Passes Legislation Adopting New Rent Support (CERS),

Lockdown Support and Extension of the Canadian Emergency Wage Subsidy (CEWS)

Posted: November 20, 2020

• The Canada Emergency Rent Subsidy will provide direct and easy-to-access rent and mortgage interest support to tenants and property owners until June 2021 for qualifying organizations affected by COVID-19. The new rent subsidy will support businesses, charities, and non-profits that have suffered a revenue drop by providing support up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Claims can be made retroactively to September 27, 2020.

• Lockdown Support, will provide an additional 25 per cent, through the Canada Emergency Rent Subsidy, for qualifying organizations subject to a lockdown and that must shut their doors, or, significantly restrict their activities under a public health order issued under the laws of Canada or, a province/territory (including orders made by a municipality or regional health authority under one of those laws). Combined, this will mean that hard-hit businesses subject to a lockdown could receive rent support of up to 90 per cent.

• The extension of the Canada Emergency Wage Subsidy until June 2021. The wage subsidy will remain at the current rate of up to 65 per cent of eligible wages until December 19, 2020.

• The new rent subsidy will pick up where the previous program left off, delivering direct, targeted and accessible rent support to qualifying organizations affected by COVID-19 without the need to work through their landlords. It will provide a subsidy for eligible fixed property expenses, including rent and interest on commercial mortgages. The announced program parameters will apply until December 19, 2020, with future parameters in 2021 to be adapted and targeted as needed.

• To formalize rent payable as an eligible expense for purposes of the Canada Emergency Rent Subsidy as of September 27, 2020, the government will introduce legislation in the House of Commons as soon as possible.

• Draft legislative proposal
• Details on the Canada Emergency Wage Subsidy Extension
• Canada Emergency Rent Subsidy
• Lockdown Support for Businesses Facing Significant Public Health Restrictions
• Canada Emergency Wage Subsidy, Canada Emergency Rent Subsidy and Lockdown Support

New Canada Emergency Rent Subsidy (CERS)

Extension of the Canada Emergency Wage Subsidy (CEWS)

Expansion of the Canada Emergency Business Account (CEBA)

Canada Relief Benefit (CRB) now open for Application

Posted: October 15, 2020

NEW -Canada Emergency Rent Subsidy (CERS)

• The CERS will provide simple and easy-to-access rent and mortgage support until June 2021 for qualifying businesses and organizations affected by COVID-19.

• The new rent subsidy will support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Organizations will be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.

• The subsidy also provides a 25 per cent top up for businesses or organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority. This top up is over and above the 65 per cent subsidy.

• The new rent subsidy will deliver direct, targeted and accessible rent support to qualifying businesses affected by COVID-19 without the need to work through their landlords. It will also continue to provide support to eligible property owners.

•  The subsidy can be applied to eligible fixed property expenses, including rent and interest on commercial mortgages. Program parameters announced will apply until December 19, 2020 with future parameters in 2021 to be adapted and targeted as needed.

Extension of the Canada Emergency Wage Subsidy (CEWS)

• The CEWS is being extended until June 2021. While the subsidy would remain at the current subsidy rate of up to a maximum of 65 per cent of eligible wages until December 19, 2020, future program parameters will be defined.

Expansion of the Canada Emergency Business Account (CEBA)

• Will enable businesses, and not-for-profits eligible for CEBA loans—and that continue to be seriously impacted by the pandemic—to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000.

• Half of this additional financing ($10,000) would be forgivable if repaid by December 31, 2022.

• Further details, including the launch date and application process will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.

Canada Recovery Benefit (CRB) – Application Now Open

• Applications opened October 12, 2020. Information on criteria and how to apply can be found at: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit.html

• Application can be made online if you have filed a 2019 tax return.

• For those who have not yet filed a 2019 return application must be made via the CRA automated phone line at 1-800-959-8281. Select option 3 – CRB. You will then be required to enter your Social Insurance Number (SIN), your date of birth and listen to a declaration and attest that you do qualify before your application will be processed.

• Canada’s COVID-19 Economic Response Plan

Application Process for CRSB and CRCB Now Open

Posted: October 5, 2020

• shorter eligibility periods of one week for the CRSB and CRCB; two weeks for the CRB
• retroactive periods, meaning that people will be required to apply after the period has ended;
• a 10% tax withholding at source; and
• a three-to-five day window to receive payments for applications made by direct deposit, and a 10-12 day window by cheque by mail.

• The CRSB provides $500 ($450 after taxes withheld) per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19, or have underlying conditions that would make them more susceptible to COVID-19.

• The CRCB provides $500 ($450 after taxes withheld) per week for up to 26 weeks per household, for eligible people unable to work because they must care for a child under 12 years old or other family member requiring supervised care, who is unable to attend their school or regular care facility, due to COVID-19.

• The CRB provides $500 per week for up to 26 weeks; to workers who are self-employed or are not eligible for EI and who still require income support. This benefit supports people who have stopped working due to COVID-19 or whose income has dropped by at least 50% or more. These workers must be available and looking for work, and must accept work when it is reasonable to do so.

• People may earn income of up to $38,000 for the calendar year while receiving the CRB. People will have to reimburse $0.50 of the CRB for every dollar of net income earned above $38,000, up to the maximum benefit they received. This will be calculated and repaid as part of their income tax return filing when they do their taxes for the year.

• To be eligible for any of the recovery benefits, people must have earned at least $5000 (before deductions) in 2019, 2020, or in the 12 months prior to applying.

• People cannot apply for or receive, for the same period, more than one recovery benefit, Employment Insurance benefits, workers’ compensation benefits, or Québec Parental Insurance Plan benefits.

• Canada Recovery Benefit
• Canada Recovery Sickness Benefit
• Canada Recovery Caregiving Benefit

New Recovery Benefits Announced by Federal Government

Posted: September 25, 2020

• A Canada Recovery Benefit (CRB) of $500 per week for up to 26 weeks, to workers who are self-employed or are not eligible for EI and still require income support. This benefit would support Canadians who have not returned to work due to COVID-19 or whose income has dropped by at least 50%. These individuals must be available and looking for work, and must accept work where it is reasonable to do so.

• A Canada Recovery Sickness Benefit (CRSB) of $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19.

• A Canada Recovery Caregiving Benefit (CRCB) of $500 per week for up to 26 weeks per household. CRCB is available for Canadians unable to work because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19 or, because the child or family member is sick and/or required to quarantine.

• An applicant can only access one of the benefits announced September 24 in a given benefit period. The benefits are also only available to those who are not eligible for EI.

• Income from self-employment is defined as “revenue from the self-employment less expenses incurred to earn that revenue.”

• The benefits are only offered to those whose loss of employment is related to COVID-19. If someone has failed to return to their employment when it was reasonable to do so or declined a reasonable offer to work, they become ineligible.

• Workers have to re-apply for the CRB every two weeks.

• If a person has income of more than $38,000 for 2020 or for 2021, the person must repay an amount equal to 50 cents for every dollar of income earned in that year above $38,000 of income, up to the total amount of Canada recovery benefits received by them in the year.