To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB).
Update March 27, 2020 – Increased Wage Subsidy
Please see our article here.
A Summary of the Canadian Wage Subsidy and Emergency Benefits Programs for COVID-19
How much will this cover?
This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.
Who will this support?
Unemployed Canadians: The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).
Underemployed Canadians: Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.
How does my business apply?
These details have not been released.
For additional information:
- Read the full announcement at https://www.canada.ca
- COVID-19 Updates and Resources for Accounting Professionals compiled and researched by Video Tax News