Article written by Pascale Pellerin
For periods following September 26, 2020, it is no longer possible for workers affected by COVID-19 to apply for the Canada Emergency Benefit (CEP). As of September 27, 2020, the federal government is allowing eligible workers who are not entitled to EI benefits to take advantage of the Canadian Economic Recovery Benefit (CERB).
Canadian Economic Recovery Benefit (CERB)
The Canada Pension Plan (CPP) is administered by the Canada Revenue Agency (CRA) to provide financial assistance to workers directly affected by COVID-19. The period covered by the program is from September 27, 2020 to September 25, 2021, with benefits for a maximum of 26 weeks within this period. Each request covers a period of two (2) weeks and payments are $1,000 per period, or $500 per week.
ERRP eligibility criteria
To be eligible for ERRP, you must:
- Be at least 15 years old and reside in Canada;
- Have had an income of at least $5,000 in 2019, 2020 or in the 12 months preceding the application;
- income must come from one or more of the following sources: employment, business (self-employment), employment insurance benefits or maternity, paternity or parental leave benefits;
- Not be eligible for employment insurance benefits;
- Not be employed or self-employed for reasons related to COVID-19 for the application period OR have a drop in average weekly income of at least 50%;
- Be seeking employment and not have refused work on unreasonable grounds during the 2-week period covered by the application.
* People who have voluntarily left their jobs or voluntarily reduced their hours without good reason are not eligible for this program.
** A clawback provision is provided for workers with net income in excess of $38,000 (excluding TPP payments) for the year in question. This recovery will take place when tax returns are prepared for the years 2020 and 2021.
*** People who have received or applied for benefits such as the Canadian Economic Recovery Benefit for Caregivers (CARC), the Canadian Economic Recovery Sickness Benefit (CERSB), Short-Term Disability (STD), Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) benefits are not eligible for the RCP for this period.
How to obtain PCRE:
- Requests must be made via the online portal Mon Dossier de l’ARC;
- Workers must submit their request within 60 days of the end of the period for which the request is made;
- Benefits are paid after the period in question, to allow proof of inability to work during that period;
Benefits are taxable. A 10% withholding tax will be deducted by the CRA at the time of payment. The amount will be applied against any income tax due for the year in question.
Canadian Recovery Health Benefit (CRHB)
The PCMRE is administered by the Canada Revenue Agency (CRA) to provide financial assistance to workers who are unable to work due to the obligation to isolate themselves because of COVID-19. The assistance corresponds to an amount of $500 per week, for a maximum of two (2) weeks between September 27, 2020 and September 25, 2021.
PCMRE eligibility criteria
To be eligible for the PCMRE, you must:
- Be at least 15 years old and reside in Canada;
- Have had an income of at least $5,000 in 2019, 2020 or in the 12 months preceding the application;
- income must come from one or more of the following sources: employment, business (self-employment), employment insurance benefits or maternity, paternity or parental leave benefits;
- Not have received paid leave payments from your employer for the same period;
- Be unable to work at least 50% of the scheduled work week to go into seclusion for one of the following reasons:
- Have or may have had COVID-19;
- Having received recommendations from an employer, health professional or public health authority to go into isolation;
- Have an underlying health problem that increases the risk of contracting COVID-19 on the advice of a healthcare professional or public health authority.
* Specific criteria for people who have traveled abroad have been revised by the federal government as of January 3, 2021.
** People who have received or applied for benefits such as the Canadian Recovery Bond (CRB), Canadian Caregiver Economic Recovery Benefit (CCEDB), Short-Term Disability (STD) benefits, Employment Insurance (EI) benefits or Quebec Parental Insurance Plan (QPIP) benefits are not eligible for the PCMRE for the same period.
How to obtain the PCMRE:
- Requests must be made via the online portal Mon Dossier de l’ARC;
- Workers must submit their request within 60 days of the end of the period for which the request is made;
- A medical certificate is not required as long as the eligibility conditions are met. Proof of eligibility may be requested at the time of application or at a later date.
Benefits are taxable. A 10% withholding tax will be deducted by the CRA at the time of payment. The amount will be applied against any income tax due for the year in question.
Canadian Caregiver Economic Recovery Benefit (CCERB)
PCREPA was established by the federal government to provide financial assistance to people who are unable to work because of their obligation to care for a child under age 12 or a family member requiring supervision.
If the child’s school or the family member’s care facility is closed, or if the child or family member is ill, in isolation or at risk of serious health complications due to COVID-19, it is possible under certain conditions to take advantage of this assistance. The corresponding assistance is $500 per week, for a maximum of 26 weeks during the period from September 27, 2020 to September 25, 2021. Requests must be made for each eligible week.
PCREPA eligibility criteria
To qualify for PCREPA, you must:
- Be at least 15 years old and reside in Canada;
- Have had an income of at least $5,000 in 2019, 2020 or in the 12 months preceding the application;
- income must come from one or more of the following sources: employment, business (self-employment), employment insurance benefits or maternity, paternity or parental leave benefits;
- Not have received paid leave payments from your employer for the same period;
- Be the only person in the family unit at the same address to claim the benefit for the week covered by the claim;
- Be unable to work at least 50% of the scheduled work week to care for a family member for one of the following reasons:
- School, daycare, day program or care facility is closed or inaccessible due to COVID-19;
- Regular care services are not available due to COVID-19;
- The family member has COVID-19, shows symptoms of COVID-19, is at risk of serious health complications if he/she contracts COVID-19 according to the recommendations of a health professional, or is in isolation due to COVID-19 on the advice of a health professional or public health authority.
* People who have received or benefits such as the Canadian Economic Recovery Benefit (C.E.R.B.), the Canadian Economic Recovery Sickness Benefit (C.E.R.S.B.), short-term disability benefits, employment insurance benefits or Quebec Parental Insurance Plan (QPIP) benefits are not eligible for the C.E.R.B. for this period.
How to obtain PCREPA:
- Requests must be made via the online portal Mon Dossier de l’ARC;
- Workers must submit their request within 60 days of the end of the period for which the request is made;
- Eligibility for PCREPA is determined by certification. Proof of eligibility may be requested at the time of application or at a later date;
Benefits are taxable. A 10% withholding tax will be deducted by theCRA at the time of payment. The amount will be applied against any income tax due for the year in question.
