Everything you need to know about the new CERB transition programs

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Time to read: 3 minutes

As some government support programs end, others are opening up. We’ve summarized everything you need to know about the income support available now that CERB has ended.

Highlights

  • The Canada Recovery Benefit (CRB) is for those whose income has decreased because of COVID-19. There’s no specific income threshold for applying, but you’ll need to repay it at the end of the year if your income is over $38,000

  • The Canada Recovery Sickness Benefit (CRSB) is for those who are ill or forced to quarantine because of COVID-19

  • The Canada Recovery Caregiving Benefit (CRCB) is for those who can’t work or need to reduce their hours to care for someone because of COVID-19

  • All the benefits pay $500 per week

Common eligibility for all three programs:

  • You must have a valid SIN, be at least 15 years old, and be resident and present in Canada

  • You must have had total income of $5,000 from employment, self-employment or certain other benefit payments in 2019 or the 12 months before applying (or in 2020 for applications for 2021 periods)

    • Income from self-employment means your revenue minus expenses

Canada Recovery Benefit (CRB)

  • To help self-employed workers who don’t qualify for EI and who’ve had a reduction in income because of COVID-19

  • Benefit is $500 per week for a maximum of 38 weeks (updated 2/19)

  • You’ll apply in two-week periods from Sept 27, 2020 to Sept 25, 2021

  • You need to repay the CRB if your income – excluding the CRB – is more than $38,000 (the repayment is at a 50% rate, up to the amount of benefit received)

    • Example: If your self-employment income is $40,000 for 2020 and you received $4,000 of CRB, then you'd have to repay $1,000 of the CRB as part of your 2020 tax return ($40,000 - $38,000 X 50%)

  • Applications open October 12, 2020 on the CRA’s website

  • The eligibility criteria:

    • For reasons related to COVID-19, you were not employed or self-employed, or had a 50% reduction in average weekly employment or self-employment income for the two-week period compared to average weekly employment and self-employment income for 2019 or the 12 months before applying (or 2020 for applications for 2021 periods)

      • Your average weekly employment/self-employment income is a simple average
        Example: If your 2019 self-employment income was $26,000, your average weekly self-employment income for 2019 is $500 ($26,000 ÷ 52 weeks)

    • You didn’t receive EI, the Canada Recovery Sickness Benefit or the Canada Recovery Caregiving Benefit during the two-week period

    • You were seeking work during the two-week period, and you didn’t place any undue restrictions on your availability for work

    • You haven’t quit, voluntarily ceased working, failed to resume work when it’s reasonable to do so, or declined a reasonable work offer

    • The same common eligibility criteria as above

Canada Recovery Sickness Benefit (CRSB)

  • To help workers who are ill or must self-isolate because of COVID-19

  • Benefit is $500 per week for a maximum of 4 weeks (updated 2/19)

  • You’ll apply in one-week periods from Sept 27, 2020 to Sept 25, 2021

  • Applications open October 5, 2020 on the CRA’s website

  • The eligibility criteria:

    • You had a 50% reduction in your normal employment hours or the time devoted to your self-employment work because you either

      • Contracted or might have contracted COVID-19

      • You have an underlying condition, are undergoing treatments or have contracted other sicknesses that make you susceptible to COVID-19, or

      • Had to isolate because of COVID-19

    • You didn’t receive EI, the Canada Recovery Benefit or the Canada Recovery Caregiving Benefit during the period

    • You didn’t receive paid leave or other payment under a sickness benefit plan

    • The same common eligibility criteria as above

Canada Recovery Caregiving Benefit (CRCB)

  • To help workers who are unable to work because they’re caring for someone due to COVID-19

  • Benefit is $500 per week for a maximum of 38 weeks per household, and only one person in the household can claim the benefit each week (updated 2/19)

  • You’ll apply in one-week periods from Sept 27, 2020 to Sept 25, 2021

  • Applications open October 5, 2020 on the CRA’s website

  • The eligibility criteria:

    • You had a 50% reduction in your normal employment hours or the time devoted to your self-employment work because you either

      • Cared for a child under 12 because their school/other facility was closed or restricted, the child wasn’t able to attend school/other facility because of COVID-19, or the child’s usual caregiver wasn’t available because of COVID-19

      • Cared for a family member who requires supervised care because their usual facility was closed or restricted, the family member wasn’t able to attend the facility because of COVID-19, or the family member’s usual care services weren’t available

    • You didn’t receive EI, the Canada Recovery Benefit or the Canada Recovery Caregiving Benefit during the period

    • You didn’t receive paid leave or other payment under a caregiving plan

    • The same common eligibility criteria as above

The government has also introduced penalties that may apply if these programs are taken advantage of. These penalties range from a $5,000 fine to six months’ imprisonment, and they may also consist of:

  • Interest is payable on repayments if you weren’t entitled to the benefit

  • A 50% penalty (up to $5,000) may apply to persons who knowingly make false or misleading representations, or apply when they know they’re ineligible

  • Criminal charges may apply to cases of using someone else’s identity or knowingly making three or more false or misleading representations that result in benefit payments over $5,000