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COVID-19 Financial Support Programs for Individuals – Federal

Canada Emergency Response Benefit (CERB)

The Canada Emergency Response Benefit (CERB) provided financial support of $500 per week to employed and self-employed individuals residing in Canada who stopped working involuntarily due to COVID-19 and were not eligible for Employment Insurance (EI) benefits.  The CERB covered a 28-week period between March 15 and September 26, 2020.  If you applied for and received this benefit through CRA, you will receive a T4A slip reporting the amount of income to be included on your 2020 tax return.  If you applied for and received this benefit through Service Canada, you will receive a T4E slip. Applications for this benefit closed on December 2, 2020.

Canada Emergency Student Benefit (CESB)

The Canada Emergency Student Benefit (CESB) provided financial support of $1,250 – $2,000 per month to post-secondary students as well as recent high-school and post-secondary graduates who were unable to find work due to COVID-19.  The CESB covered a 16-week period between May 10 and August 29, 2020.  If you applied for and received this benefit, you will receive a T4A slip from CRA reporting the amount of income to be included on your 2020 tax return.  Applications for this benefit closed on September 30, 2020.

Canada Recovery Benefit (CRB)

The Canada Recovery Benefit (CRB) is one of the benefits that has replaced the CERB/CESB and provides financial support of $500 per week before tax to employed and self-employed individuals residing in Canada.  To be eligible for the CRB, individuals must not be entitled to Employment Insurance (EI) benefits, must experience a reduction in income of at least 50% due to COVID-19, and must be reasonably looking for and accepting of work.  The CRB covers two-week eligibility periods from September 27, 2020 to September 25, 2021 and individuals must submit a new application for each two-week period as applicable.

Canada Recovery Sickness Benefit (CRSB)

The Canada Recovery Sickness Benefit (CRSB) provides financial support of $500 per week before tax to employed and self-employed individuals residing in Canada who are unable to work because they are sick or need to self-isolate due to COVID-19 or have underlying health conditions that put them at greater risk of contracting COVID-19.  The CRSB is not available to individuals in receipt of the Canada Recovery Benefit, the Canada Recovery Caregiving Benefit, short-term disability benefits, or Employment Insurance benefits. The CRSB covers one-week eligibility periods from September 27, 2020 to September 25, 2021 and individuals must submit a new application for each one-week period as applicable, for a maximum of two-weeks.

Canada Recovery Caregiving Benefit (CRCB)

The Canada Recovery Caregiving Benefit (CRCB) provides financial support of $500 per week before tax to employed and self-employed individuals residing in Canada who are unable to work because they must care for their child under 12 years old or a family member who needs supervised care.  This applies if they are sick, self-isolating, or at risk of serious health complications due to COVID-19, or if their school, regular program or facility is closed or unavailable to them due to COVID-19.  The CRCB is not available to individuals in receipt of the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, short-term disability benefits, or Employment Insurance benefits.  The CRCB covers one-week eligibility periods from September 27, 2020 to September 25, 2021 and individuals must submit a new application for each one-week period as applicable.

One-time tax-free payment – GST credit

A one-time, tax-free payment was provided to individuals already receiving the GST credit on April 9, 2020.  The one-time additional payment was calculated based on the individual’s 2018 net income.  No application was required for this payment; eligible individuals should have received it automatically.

One-time tax-free payment – Canada child benefit (CCB)

 A one-time, tax-free payment of up to $300 per eligible child was provided to individuals already eligible for the Canada Child Benefit in May 2020.  The one-time additional payment was calculated based on the family’s 2018 net income.  No application was required for this payment; eligible individuals should have received it automatically.

One-time tax-free payment to seniors

A one-time, tax-free payment of $300 was provided to seniors eligible for the Old Age Security (OAS) pension, with an additional $200 provided to seniors eligible for the Guaranteed Income Supplement (GIS), during the week of July 6, 2020. No application was required for this payment; eligible individuals should have received it automatically.

One-time tax-free payment to individuals with disabilities

A one-time, tax-free payment of $600 is being provided to individuals who have a current Disability Tax Credit Certificate on file with CRA or were eligible and applied for a Disability Tax Credit Certificate by December 31, 2020.  Individuals who are also eligible for the OAS pension will receive a $300 payment and individuals who are eligible for both OAS and GIS will receive a $100 payment.  No application is required for this payment; eligible individuals should receive it automatically.

COVID-19 Financial Support Programs for Individuals – B.C.

B.C. Emergency Benefit for Workers

The B.C. Emergency Benefit for Workers was a one-time, tax-free payment of $1,000 to B.C. residents whose ability to work was affected due to COVID-19.  Applications for this benefit closed on December 2, 2020.

B.C. Recovery Benefit

The BC Recovery Benefit is a one-time, tax-free payment of up to $500 for eligible individuals and up to $1,000 for eligible families.  To be eligible for the payment, individuals must have been at least 19 years old and have been a resident of B.C. on December 18, 2020 and must have filed a 2019 income tax return if required.  The amount of the benefit received will be based on the individual’s or family’s net income.

  • Individuals with a 2019 net income of up to $62,500 will be eligible for the full amount of $500.
  • Individuals with a net income between $62,500 and $87,500 will be eligible for a reduced amount.
  • Single parents and families with a combined 2019 net income of up to $125,000 will be eligible for the full amount of $1,000.
  • Single parents and families with a combined 2019 net income between $125,000 and $175,000 will be eligible for a reduced amount.

Applications for this benefit are open until June 30, 2021.

COVID-19 Financial Support Programs for Self-Employed Individuals

Canada Emergency Business Account (CEBA)

The Canada Emergency Business Account (CEBA) provides interest-free, partially forgivable loans of up to $60,000 for small businesses, including sole proprietorships, operating in Canada.

The original CEBA provides an interest-free loan of up to $40,000, 25% ($10,000) of which is forgivable if the loan is repaid by December 31, 2022.  The expanded CEBA provides an additional $20,000 interest-free loan, of which 50% ($10,000) is forgivable if repaid by December 31, 2022.

In order to be eligible for the CEBA, the business must meet these main criteria:

  • Has been actively operating in Canada as of March 1, 2020,
  • Has an active CRA Business Number effective prior to March 1, 2020,
  • Has a business chequing/operating account with their primary financial institution (or creates one prior to application for the CEBA),
  • Intends to continue or resume its business operations, and
  • Has either payroll expenses paid in the 2019 calendar year between $20,000 and $1,500,000 or has eligible non-deferrable expenses (e.g. rent, property taxes, utilities, insurance) between $40,000 and $1,500,000 for 2020.

Eligible businesses may apply for the CEBA directly through their primary financial institution.  Businesses that have already applied for and received the original $40,000 CEBA may also apply for the expanded CEBA of $20,000.  The deadline for all CEBA applications is March 31, 2021.

Temporary Wage Subsidy (TWS)

The Temporary Wage Subsidy (TWS) is a 3-month measure that allows eligible employers, including sole proprietors, to reduce the amount of federal and provincial income tax they are required to remit to CRA.  The subsidy is equal to 10% of the remuneration paid from March 18 to June 19, 2020 to eligible employees, up to a maximum of $1,375 per employee and a total of $25,000 per employer.  If payroll remittances for this period have already been remitted, eligible employers can request payment of the subsidy from CRA by submitting form PD27.

Canada Emergency Wage Subsidy (CEWS)

The Canada Emergency Wage Subsidy (CEWS) provides a subsidy to eligible employers, including sole proprietors, of 75% of eligible remuneration paid to each eligible employee, up to a maximum of $847 per week.  The CEWS covers 4-week eligibility periods starting March 15, 2020 and the program is currently extended to June 30, 2021.  The CEWS claim will be reduced by any amounts claimed under the Temporary Wage Subsidy.  Please let us know if you would like further information regarding eligibility considerations.

Canada Emergency Rent Subsidy (CERS)

The Canada Emergency Rent Subsidy (CERS) provides a subsidy to eligible businesses, including sole proprietors, to help cover the cost of eligible expenses, which may include rent, mortgage interest, property tax, and insurance. The subsidy covers up to 65% of eligible expenses, with a maximum amount of $75,000 per location and a maximum of $300,000 per affiliated group per qualifying period.  The CERS program covers 4-week eligibility periods starting September 27, 2020 and the program is currently extended to June 30, 2021.  Please let us know if you would like further information regarding eligibility considerations.

 

To view a summary table of COVID-19 Financial Support Programs, please refer to our Client Centre section.

 

 

 

 

 

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