Muhammad Nasrullah, CPA
Canada Emergency Response Benefit, what is it?
The Canada Emergency Response Benefit gives financial support to self-employed and employed persons. If you are eligible you will receive $2000 for a 4 week period, which is the same as receiving $500 every week. This benefit started in mid-March 2020.
How to know if you are eligible?
To be able to apply for the Canada Emergency Response Benefit (CERB) you must know your eligibility. You may talk to local accounting firms or your tax accountant for more clarifications. The criteria are as follows.
-Must be 15 years or older
-Resident of Canada (must be living in Canada)
-Must have income of at least $5000 in 2019 or 12 months before applying
-$5000 In ineligible dividends are also considered
-Unemployed or were unable to work or without income for 14 days straight due to COVID-19
The government has allowed Canadians to work a maximum of 10 hours per week and still be allowed to collect the Canada Emergency Response Benefit, however only if the above criteria are met.
George is a self-employed gardener who receives commission income. Due to COVID-19 He has not been working since March 20 for 14 consecutive days. Although, in January George did a lot of yard work and was able to make $8000 in commission income. The criteria require for the individual to be unemployed or without income for 14 consecutive days and make $5000 prior to applying for the Canada Emergency Response Benefit (CERB). In this instance George is eligible for the Canada Emergency Response Benefit (CERB).
Kevin is a massage therapist professional and has his own corporation. Due to COVID-19 Kevin lost clients and stopped working on March 16 and has not made any income since that time. In February 2020 Kevin had $6000 of ineligible dividends from his corporation. Based on the criteria Kevin can qualify for the Canada Emergency Response Benefit (CERB).
Ajay is 29 years of age. He is unemployed and is living with his parents. He has been unemployed his entire life and did not have a job before COIVS-19 and did not lose a job due to COVID-19. He made no income in 2019 or prior to applying to the Canada Emergency Response Benefit (CERB). He meets none of the criteria. In this instance, Ajay does not qualify for the Canada Emergency Response Benefit (CERB).
Where to Apply for the Canada Emergency Response Benefit (CERB)
Applying for the Canada Emergency Response Benefit (CERB) is easy and does not take up any time at all. You may use this link to apply: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html
You must have a CRA account to be able to use the link to apply. If you do not have an account you may set your account up using this link: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html
You can also call the CRA to set up an account at 1-800-959-8281
If you would like to apply for the Canada Emergency Response Benefit (CERB) over the phone then you must first set up your Social Insurance Number (SIN) over the phone by calling 1-800-959-2019. After you have done that you can call: 1-800-959-2049 to apply for the Canada Emergency Response Benefit (CERB).
The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Muhammad Nasrullah and Muhammad Nasrullah CPA Professional Corporation will not be held liable for any problems that arise from the usage of the information provided on this page.