The Canadian Recovery Benefits
The Canadian Government has released new details about how they will be transitioning from the CERB to the new CRB. It has 3 new options to further assist Canadians get through these unprecedented times.
The Canadian Recovery Benefit (CRB) will be the most used of the new benefit options. It will give eligible citizens access to $400 per week up to 26 weeks through a filing similar to our E.I. programs but accessed through your My Account portal on the CRA website. All applicants must have already signed up for the My Account. This new benefit is not as restrictive as CERB as it relates to income earned in 2020. The CRB would only be repayable if your income for the 2020 tax year eclipses $38,000 NET at a rate of $0.50 per dollar made and completely repayable over $46,000 NET. Unlike CERB, the CRB is not added to your income, the new benefit would be extracurricular and not calculated when determining your marginal tax rate. This benefit is accessible to anyone who does not qualify for regular unemployment benefits i.e. Self Employed/Gig Economy tax payers. The claimants would have to meet all prior requirements set for by the CERB and be actively seeking employment. After, employment has been achieved the claimant can still receive the CRB.
The Canadian Recovery Sickness Benefit (CRSB) is a benefit available to Canadians who have been infected with CoVid-19 and have been told to quarantine. This benefit requires claimants to have a medical certificate to authenticate claim and must not be receiving other sick benefits. The eligible applicants would receive $500 per week up to 2 weeks and must have missed 60% of their scheduled work week at the time of application submission. This benefit is taxable at the claimants marginal tax rate.
The Canadian Recovery Caregiving Benefit (CRCB) is a benefit; that allows parents or people who care for disabled/dependent family members, to collect $500 per week up to 26 weeks. The following situations are applicable:
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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:
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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:
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because their school or daycare is closed or operates under an alternative schedule for reasons related to the COVID-19 pandemic;
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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
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because the caregiver who usually provides care is not available for reasons related to the COVID-19 pandemic; or
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they must provide care to a family member with a disability or a dependent:
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because their day program or care facility is closed or operates under an alternative schedule for reasons related to COVID-19;
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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
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because the caregiver who usually provides care is not available for reasons related to the COVID-19 pandemic
The claimants must not be in receipt of other Recovery Benefits, EI or Workplace leave benefits. Also, only one Caretaker Benefit would be allowed per household.
If you have any questions about this or any other new updates about CoVid-19 benefits or tax implications please do not hesitate to give us a call.
