Canada Recovery Benefit
The CRB has recently been extended to run through October 23, 2021 and increasing maximum number of weeks available for the CRB, by an additional 4 weeks, to a total of 54 weeks, at a rate of $300 per week.
Applications are now open — The Canada Recovery Benefit provides a benefit amount every two-weeks for up to 54 weeks (between September 27, 2020 and October 23, 2021) 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). For information and to apply click here
The benefit will be $1000 every two weeks if you applied before July 18, 2021 and until you receive 21 payments, then it is reduced to $600 every two weeks.
The benefit will be $600 every two weeks if your first CRB period is after July 17, 2021.
The benefit is taxable, so 10% is withheld for tax before payment is issued.
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 of at least 50% 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. If their situation continues past 2 weeks, they will need to apply again. 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.
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, there is a difference in how much you can keep if you earn more than $38,000 in the calendar year. In that case, you will have to reimburse $0.50 of the CRB for every dollar of net income you earned above $38,000 on your income tax return. You will not have to pay back more than your benefit amount for that year. This will be due at the same time as your income tax return for the year. Late payments will be charged interest.
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