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 New COVID-19 Benefits: Canada Recovery Benefit, Canada Recovery Sickness Benefit, and Canada Recovery Caregiving Benefit

Prepared by: Chinese and Southeast Asian Legal Clinic

Current as of: October 22, 2020

pdf: CSALC – Website Write-up re. Bill C-4 – Oct. 22, 2020

Introduction

On October 2, 2020, the Government of Canada introduced 3 new benefits in response to COVID-19 that replace the Canada Emergency Response Benefit (CERB), which ended on September 26, 2020. The following benefits are for workers who do not qualify for Employment Insurance (EI) and are administered by the Canada Revenue Agency (CRA):

1. Canada Recovery Benefit (CRB)
2. Canada Recovery Sickness Benefit (CRSB)
3. Canada Recovery Caregiving Benefit (CRCB)

The application process for these new benefits is different from the previous application process for CERB in the following ways:

• Workers will need to reapply every week or every 2 weeks, depending on the benefit
• Retroactive application: workers must wait until after the 1-week or 2-week eligibility period is over to apply for the benefit.
• A 10% tax withheld at the source, not deducted when filing taxes annually
• 3-5 day window to receive payments by direct deposit, and a 10-12 day window for payment by cheque in the mail

1. Canada Recovery Benefit (CRB) – Applications opened on October 12, 2020

The CRB will provide $500 per week for a maximum of 26 weeks ($450 per week after taxes). It is for workers who do not qualify for EI, including those who are self-employed and independent contractors. The CRB is available from September 27, 2020 to September 25, 2021. Applications opened on October 12, 2020 through the CRA’s MyAccount portal or CRA’s automated telephone line.

Unlike the CERB, which had a 4-week eligibility period, the CRB will have a shorter eligibility period of 2 weeks. You must have stopped working or had your hours reduced for 2 weeks before you can apply for that same period, and must retroactively re-apply every 2 weeks. For example, you would need to apply on or after October 12 to receive CRB for the first eligibility period of September 27 to October 10.

You may start applying on the first Monday after the 2-week period you are applying for has ended. Applications do not renew automatically. You may apply for any period you are eligible for up to 60 days after the period has ended.

To be eligible for the CRB during the relevant 2-week eligibility period, a worker must:

• not be working for reasons related to COVID-19 or;
• have had a 50% reduction in average weekly employment and/or self-employment income* compared to the previous year due to COVID-19

* Includes tips, non-eligible dividends, honoraria, and royalties; excludes pensions, student loans and bursaries, EI maternity and parental benefits, or any Canada COVID-19 benefits.

• not apply for or receive the following:
  • CRSB
  • CRCB
  • Short-term disability benefits
  • Workers’ compensation benefits
  • EI benefits
  • Québec Parental Insurance Plan (QPIP) benefits
• not be eligible for EI benefits
• reside in Canada (you live and have a home in Canada, but do not have to be a citizen or a permanent resident)
• be present in Canada (you are physically present in Canada)
• be at least 15 years old
• have a valid Social Insurance Number (SIN)
• have earned at least $5,000** (before deductions) in 2019, 2020, or in the 12 months before the date you apply for the CRB from the following sources:
  • Employment income
  • Self-employment income
  • EI Maternity and Parental benefits

** Includes tips, non-eligible dividends, honoraria, and royalties; excludes disability benefits, student loans/bursaries/scholarships, pension, or other COVID-19 benefits.

• not have quit your job or reduced your hours voluntarily
• seek work during the period – either as an employee or in self-employment***

*** You may earn employment or self-employment income while you receive CRB, but every dollar that you earn above $38,000 for that tax year (2020 or 2021), you will have to reimburse $0.50.

• not have turned down reasonable work

2. Canada Recovery Sickness Benefit (CRSB) – Applications open as of October 5, 2020

The CRSB will provide $500 per week ($450 per week after tax) for up to a maximum of 2 weeks. It is for workers who:

• are unable to work for at least 50% of the scheduled work week because they contracted COVID-19;
• are advised+ to self-isolate for reasons related to COVID-19; or

+ By your employer, a medical practitioner, a nurse practitioner, a person in authority, the government, or your public health authority.

• have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19.

The CRSB will be paid in 1-week periods. You must wait until you have missed work for one week to apply. If your situation continues past one week, you will need to apply again. You may apply up to a total of 2 weeks between September 27, 2020 and September 25, 2021.

You may start applying on the first Monday after the 1-week period you are applying for has ended. Applications do not renew automatically; you must apply for each period separately. You may apply for any period you are eligible for up to 60 days after the period has ended.

In addition to the above, a worker must meet all of the following conditions:

• did not apply or receive any of the following:
  • CRB
  • CRCB
  • short-term disability benefits
  • workers’ compensation benefits
  • EI benefits
  • QPIP benefits
• reside in Canada (you live and have a home in Canada, but do not have to be a citizen or a permanent resident)
• be present in Canada (you are physically present in Canada)
• be at least 15 years old
• have a valid SIN
• have earned at least $5,000 ⁺⁺ (before deductions) in 2019, 2020, or in the 12 months before the date you apply for the CRB from the following sources:
  • employment income
  • self-employment income
  • EI Maternity and Parental benefits

 ⁺⁺ Includes tips, non-eligible dividends, honoraria, and royalties; excludes disability benefits, student loans/bursaries/scholarships, pension, or other COVID-19 benefits.

• You are not receiving paid leave from your employer for the same period.

3. Canada Recovery Caregiving Benefit (CRCB) – Applications open as of October 5, 2020

The CRCB will provide $500 per week ($450 per week, after taxes) for up to 26 weeks per household for workers unable to work for at least 50% of the week because they must care for a child under 12 years old or family member (see details below).

This benefit will be paid in 1-week periods. You must wait until you have missed work for 1 week to apply, and you must confirm that you still qualify every week. You may apply up to a total of 26 weeks between September 27, 2020 and September 25, 2021.

You may start applying on the first Monday after the 1-week period you are applying for has ended. Applications do not renew automatically; you must apply for each period separately. You may apply for any period you are eligible for up to 60 days after the period has ended.

To be eligible for the CRCB during the 1-week eligibility period, a worker must meet all the following conditions:

• be employed or self-employed on the day before your first application period
• be unable to work at least 50% of your scheduled work week because you are caring for a family member
• be caring for your child under 12 years old OR a family member who needs supervised care because they are at home for one of the following reasons:
  • their school, daycare, day program, or care facility is closed or unavailable to them due to COVID-19
  • their regular care services are unavailable due to COVID-19
  • the person under your care is:
    • sick with COVID-19, or has symptoms of COVID-19
    • at risk of serious health complications if they get COVID-19, as advised by the medical professional
    • self-isolating due to COVID-19
  • did not apply for or receive the following:
    • CRB
    • CRSB
    • short-term disability benefits
    • workers’ compensation benefits
    • EI benefits
    • QPIP benefits
  • reside in Canada (you live and have a home in Canada, but do not have to be a citizen or a permanent resident)
  • be present in Canada (you are physically present in Canada)
  • have a valid SIN
  • have earned at least $5,000⁺⁺⁺ (before deductions) in 2019, 2020, or in the 12 months before the date you apply for the CRCB from the following sources:
    • employment income
    • self-employment income
    • EI Maternity and Parental benefits

⁺⁺⁺ Includes tips, non-eligible dividends, honoraria, and royalties; excludes disability benefits, student loans/bursaries/scholarships, pension, or other COVID-19 benefits.

• you are the only person in your household applying for the benefit for the week
• you are not receiving paid leave from your employer for the same period.

Penalties: When you must return or repay the benefit

You must return or repay the CRB, CRSB, or CRCB to the CRA if you:

• applied for the benefit and later found that you are not eligible
• received a payment in error
• received one of the following for the same eligibility period:
  • CRB, CRSB, or CRCB
  • short-term disability benefits
  • workers’ compensation benefits
  • EI benefits
  • QPIP benefits
• are found to have made a fraudulent claim ^
• have turned down reasonable work during the 2-week period you’re applying for ^

^ The maximum penalty that can be imposed is $5000.

Q & A

Scenario 1 (CRB):

You worked at a nail salon in Toronto that was closed in the first lockdown in mid-March. You went back to work in August 2020 when your workplace reopened due to lifting of some restrictions. However, due to slow business, you were laid off by your employer at the end of September 2020. Your workplace treats you as an independent contractor, so your work hours are not considered insurable hours for the purposes of EI. Between October 2019 and September 2020, your gross income was $25,000. Are you eligible for the CRB?

Answer: Yes, you are eligible for CRB, if you meet all other criteria, because you lost your job due to COVID-19, you did not voluntarily quit, and you are not eligible for EI. You also earned at least $5,000 in the 12 months before your application.

Scenario 2 (CRB):

You are receiving CRB while working reduced hours. You meet the criterion of a 50% reduction in income compared to your average weekly income last year. You are worried about the health and safety standard at your bakery, which is still open. You are in your 50s and are generally worried about your health, but your doctor has not recommended that you need to stop working. You decide to quit at the end of October. Are you eligible for CRB?

Answer: No, you are no longer eligible for CRB as of the benefit period that you quit your job. You are ineligible for the CRB if you voluntarily quit or voluntarily reduce your work hours. This rule is similar to the Employment Insurance (EI) regular benefits criteria. Seek legal advice if you are thinking about quitting your job while receiving CRB.

Scenario 3 (CRSB):

You work at a restaurant in Hamilton as a waitress. You receive a phone call from Public Health Unit that you were in close contact with someone who contracted COVID-19 in the past 5 days. You immediately follow instructions from the public health advisor, leave work, and go back home. You contact your employer right away once you are at home to inform that you will need to self-isolate for 14 days as of November 9. This is your first time being told to self-isolate. Can you apply for CRSB?

Answer: Yes, you are eligible for CRSB, if you meet all other criteria, because you are currently working and were instructed by a public health authority to self-isolate. Your first benefit period is November 9 to November 15. You can apply for CRSB starting November 16 and no later than 60 days after November 16. You will only receive 1 week’s payments at a time, and will need to reapply on November 23 (your second benefit period is November 16 to November 22).

Scenario 4 (CRCB):

You and your husband decided not let your children (aged 8 and 10) return to in-person classes at school, so your children have been taking online classes since September. Your children’s school has been open during this time. You are working part-time from home. Can you apply for CRCB?

Answer: No, you are not eligible for CRCB to care for your children while they are attending virtual classes because your children’s school is open. To be eligible for CRCB, your child under 12 (or other eligible family members) cannot attend school because the physical school is closed due to COVID-19.

Scenario 5 (CRCB):

Your 14-year-old child is attending special education program for children with disabilities, and the school announced a temporary closure for 14 days starting October 19 due to a possible COVID-19 outbreak and instructions from public health authorities. You work as a cashier at a grocery store but need to care for your child during the 14-day closure of the school because he requires supervision. You earned $30,000 gross income from September 2019 to October 2020. Are you eligible for CRCB?

Answer: Yes, you are eligible for CRCB, if you meet all other criteria, because you are currently working and need to take time off to care for a family member who requires supervision even though your child is over the age of 12. Your child’s school is also closing temporarily due to COVID-19. You will need to attest to the fact that your child requires supervision in your CRSB application. Your first benefit period is October 19 to October 25. You can apply for CRCB starting October 26 and no later than 60 days after October 26. You will only receive 1 week’s payments at a time, and will need to reapply on November 2 (your second benefit period is October 26 to November 1).

Do you qualify for Employment Insurance?

To see if you qualify for EI under the new temporary changes as of September 27, 2020, go to our post:

• English: https://csalc.ca/updates-cerb-employment-insurance-programs-august-2020/
• Tiếng Việt: https://csalc.ca/vi/updates-cerb-employment-insurance-programs-august-2020/
• Traditional Chinese (with video): https://csalc.ca/zh-hant/updates-to-cerb-and-employment-insurance-programs-august-2020/
• Simplified Chinese (with video): https://csalc.ca/zh-hans/updates-to-cerb-and-employment-insurance-programs-august-2020/

COVID-19 Recovery Benefits

(Adapted from CLEO Connect / Steps to Justice)

Current as of: October 6, 2020

These 3 benefits were created to replace the Canada Emergency Response Benefit (CERB). They’re for people who don’t qualify for Employment Insurance (EI). If you qualify for EI, you must apply for EI regular benefits. For more information about COVID-19 and EI benefits, visit https://csalc.ca/.

This is general legal information for people in Ontario, Canada. It is not legal advice.