Canada Emergency Response Benefit for Small Businesses

The CERB (Canada Emergency Response Benefit) was designed to help small business owners to overcome the crisis during the Covid-19. Several workers and small businesses have suddenly become victims of circumstances through no fault of their own since the COVID-19 issue became a global pandemic. The virus crisis has shut down all non-essential services in the country. Many of such workers are part of the gig economy or self-employed with almost no access to the normal benefits that come with the employment insurance programs. Others have also become infected with the COVID-19 virus and are thus unable to work the way they normally would

What is the Canada Emergency Response Benefit all about?

The Canada Emergency Response Benefit was first introduced by the federal government as a component of a larger plan of response to assist individuals who find themselves in the categories hitherto listed. It has however since been broadened to assist Canadian workers who may be earning less than a thousand dollars in a month or may have even lost their jobs.

The Canada Emergency Response Benefit is two thousand dollars every other month for up to four months and spans a period between March 15 and October 3rd. currently, millions of Canadians have applied for the CERB.

Who is qualified to benefit from the scheme?

To qualify for this, it is expected that you reside in Canada and have a Social Insurance Number. You should also be at least 15 years old and have earned at least $5,000 over the past one year either as an employee or a small business owner.

In a case where you have been laid off, make lower than a thousand dollars each month before taxes, are a seasonal worker or you have run out of EI benefits since January 1, you are eligible for the Canada Emergency Response Benefit as a result of the COVID-19 pandemic.

You are qualified for the CERB only if you have been quarantined because of COVID-19 or you have had to take responsibility for any of your family member who has suffered COVID-19 regardless of whether you have a doctor’s note.

The benefits also extend to guardians or parents who are not able to work as a result of the fact that they have to take care of their kids as a result of the closure of schools.

Upon your first CERB application, it is expected that you must have been out of work or expect to get less than a thousand dollars for two weeks straight during the application period. For instance, if you are filing an application to receive two thousand dollars for the four weeks between April 12 and May 9, you will certainly cut if you have been out of work or earned lower than a thousand dollars in any two weeks within the four weeks.

Also, if you have not been employed or earned money below a thousand dollars since the middle of March and have not applied for CERB yet, you may opt to backdate your claims to the 15th of March. For other CERB applications, it is expected that you apply every other four weeks to keep collecting these benefits. The core criteria are that you do not expect a change in your work situation.

What category of people do not qualify for the Canada Emergency Response Benefit

If you voluntarily quit your job, you do not qualify for the CERB even if it is as a result of the COVID-19 pandemic. The only exception is that you have a family member who got infected with the virus. You also do not qualify if you have already been receiving EI benefits during the period in consideration.

How can I apply for the CERB due to COVID-19?

Application for the CERB began on April 6th, 2020 on the Canada Revenue Agency’s secure my account portal. You can also apply for it via an automated phone service over the phone.

The government has however advocated that applicants should create an online account with the CRA instead of relying upon phone application which can face some unexpected delays. When applying by phone, you should be ready to provide your postal code and SIN number so as to be able to verify your identity

To be able to streamline the process, individuals are heavily encouraged to apply on certain days. For instance, if you are born in January, March, or February, you are expected to apply on Monday. If you were born April, May, or June, you should apply on Tuesdays. For those born July, August, or September, they are expected to apply on Wednesday and so on.

What of those that have already applied for EI but awaiting the arrival of the check

If you are unemployed or small business owner and filed for EI between the 15th of March and 5th of April due to the fact that you lost your job as a result of COVID-19 and before the CERB plan was announced by the government, your application may be merged into the CERB system and you will be able to receive the $2,000 benefits for the period you were either out of work or earning less than a thousand dollars.

In a situation where you are already benefiting from EI as a result of unemployment since March 15 due to reasons unrelated to the Corona Virus, you will be eligible for the CERB if you have gotten regular EI for a minimum of a week after the 29th of December 2019.

When will I get my CERB BENEFITS?

If you have applied online for the Canada Emergency Response Benefit, you should be able to get your benefits in less than five days. You may even get it within two days of applying for the benefits. The Federal government greatly advocates that applicants should set up direct deposit because they will get their money quicker than when compared to two weeks when you opt for receiving it via check.

Whichever way it goes, one is bound to receive his or her benefits as long as the application is filed the right way.