Are You Still Eligible For The CERB? THE CERB & RETURNING TO WORK Amidst the economic challenges of COVID-19, a number of Canadians have relied on financial assistance in the form of the Canadian Emergency Response Benefit (the “CERB”). As businesses now slowly prepare to reopen in a phased approach, individuals must consider if they are still eligible to receive the CERB benefit if they are recalled to work. In doing so, they should keep in mind the potential consequences of receiving the CERB if no longer eligible. With continued relief being provided by both the Federal and Provincial governments, through measures such as the 75 percent Canada Emergency Wage Subsidy, employers have slowly begun to recall their workforces as they prepare to reopen. What this means for individuals receiving CERB is that, if re-employed, they may be ineligible for future CERB benefit payments. ARE YOU STILL ELIGIBLE? One cannot receive a salary in excess of $1,000 during a CERB payment period while also receiving the CERB benefit. Failure to comply with this can result in penalties and fines. As things begin to normalize, the CRA will begin reviewing all CERB applications and will flag any erroneous, ineligible and fraudulent claims. This will result in correcting and collecting any benefit payments paid out in error. While mistakes can happen, it is always better to err on the side of caution, and if applicable, individuals should self-disclose to the CRA in the event of their receipt of a benefit payment to which they were not entitled. THREE THINGS TO CONSIDER BEFORE REAPPLYING FOR THE CERB Things to consider in the coming days and weeks as it relates to reapplying for the CERB benefit: 1. Individuals who believe they will be recalled to work in the coming weeks may prefer to hold off on reapplying until the next CERB benefit period. If their employment salary exceeds the permitted $1,000.00 cap during the CERB benefit period, they will likely be deemed to have been ineligible for the CERB and will be obliged to repay the benefits received for the relevant period. 2. Remember that the CERB is repayable by a recipient who failed to meet the eligibility requirements for the relevant four-week period. 3. Individuals who received a benefit payment to which they were not entitled should repay the funds. • The CRA’s website sets out steps to help individuals repay benefits received in error. Those who fail to do so will be flagged, and risk the imposition of fines and penalties. If you have additional questions about returning to work and/or about receiving the CERB, feel free to contact the lawyers at Devry Smith Frank LLP to discuss your rights and options. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, COVID-19, TaxJuly 7, 2020September 29, 2020
The CERB criteria has expanded: Am I eligible? This blog is co-written by our former articling student, Janet Son. On April 15, 2020, the federal government announced the expanded eligibility criteria for the Canada Emergency Response Benefit (“CERB”), upon mounting criticism that many workers were unable to collect the CERB despite being financially impacted by COVID-19. The following changes have been made: Now workers can earn up to $1,000 per month in employment and/or self-employment income while collecting the CERB. Some examples: A gig economy worker has lost 80% of their jobs due to COVID-19 however the remaining 20% they earn $1000 for the month. They can still collect the CERB, which means total potential earnings of $3000 per month while receiving the benefit. A worker held two part-time jobs. They were laid off from one of their jobs due to COVID-19, however they are still working at the second part-time job. If the second job pays less than $1000/month, they are able to continue to work while receiving the $2000 benefit. A retail worker is receiving $1000 per month from a relief fund set up by the company they work since the store they work for is closed. They can still apply for the CERB and receive the $1000 from the relief fund. An office worker has had their pay cut to $1000 per month along with reduced working hours. They can continue to work and earn up to $1000 per month from their company while also receiving the CERB. Seasonal workers who have exhausted their Employment Insurance (EI) regular benefits and are unable to undertake their usual seasonal work as a result of the COVID-19 outbreak. For example, those who work in commercial fishing, construction or resorts who work for a period of the year and would typically receive EI for the remaining months and now cannot return to those jobs due to COVID-19 are eligible for the CERB benefit. Workers who recently exhausted their EI regular benefits between December 29, 2019 and October 3, 2020 and are unable to find a job or return to work because of COVID-19 For example, if you are collecting EI which is set to end May 1, 2020 and you are unable to find a job because of COVID-19, you can switch to receiving the CERB if you meet all the other criteria If you are an essential worker that makes less than $2500 per month, you will soon be eligible to receive a temporary salary top-up. Details of this program will be released shortly. There are likely to be further changes in the CERB eligibility requirements, in particular for students who are currently ineligible for the CERB and yet have no prospects for summer employment. If you are a student who earned at least $5000 during 2019 from a summer job, part-time work during the school year, and/or a co-op term, you are eligible for the CERB if you had a job offer for the month of May that has been deferred for at least 14 days. If you have more questions about your eligibility for the CERB, contact employment lawyer Marty Rabinovitch at 416-446-5826 or at marty.rabinovitch@devrylaw.ca By Fauzan SiddiquiBlog, COVID-19, Employment LawApril 20, 2020September 30, 2020
