As of October 12, 2020, the CRA has opened applications for the Canada Recovery Benefit (CRB). The CRB provides $500 per week for up to 26 weeks to workers who have stopped working or had their employment/self-employment income reduced by at least 50% due to COVID-19 and who are not eligible for Employment Insurance (EI).
The application process for the CRB is similar to the previous CERB program; however, there are some key changes to the application process. The new elements of the application process for CRB are as follows:
- Shorter eligibility periods of two weeks
- Since these are retroactive periods, applications must be made after the two-week period has ended
- The benefit will be taxed at a rate of 10%, and this tax will be withheld at the source. This means that you will receive $900 per two-week period if eligible ($1000 total benefit less 10% tax of $100)
- Payments will be received within a three-to-five day window through direct deposit, and a 10-12 day window for cheques mailed by the CRA.
To ensure the application goes smoothly, CRA recommends that all personal information is up-to-date and an account for direct deposit is registered. Further, the CRA encourages that your 2019 tax return be filed if not already done so as this will reduce the likelihood that additional verification steps need to be performed.
Applications can be made through CRA’s My Account portal or through the phone at 1-800-959-2019 or 1-800-959-2041.
For more information please contact our office at 780-532-4641 or visit https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit.html