Tax Tip Thursday

There are some changes coming to the COVID benefits, make sure you’re ready! Some of them are going away, and others are being changed or replaced. It’s important that people know about these!

For Individuals

EI — For claim periods between September 26 and November 20, 2021, the maximum amount of benefits available will be $300 per week.

CRB – Canada Recovery Benefit — This has ended effective October 23, 2021.

CWLB – Canada Worker Lockdown Benefit — this will begin October 24, 2021 and will run until May 7, 2022.

This is a new benefit that will provide $300 per week to eligible workers who are unable to work due to a temporary local lockdown. The government is proposing to make the benefit available for the entire duration of a government-imposed lockdown, and eligible workers would include those who are ineligible for employment insurance (EI). This has not yet been finalized, but I expect it will go through.

CRSB – Canada Recovery Sickness Benefit — They are proposing to extend this to May 2022 and increase it to six weeks from four.

CRSB provides $500 ($450 after taxes withheld) per week for up to a maximum of four weeks for workers who:

• are unable to work for at least 50% of the week because they contracted COVID-19,
• are self-isolated for reasons related to COVID-19,
• or have underlying conditions, are undergoing treatments, or have contracted other sickness that would make the more susceptible to COVID-19 in the opinion of a medical practitioner, nurse practitioner, person in authority, or government or public health authority.

CRCB – Canada Recovery Caregiving Benefit — They are proposing to extend this until May 2022 and increase it to 44 weeks from 42.

CRCB provides $500 ($450 after taxes withheld) for up to 42 weeks per household for workers who:

• are unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, daycares, or other care facilities are closed due to COVID-19,
• or are required to quarantine/are at high risk of serious health implications due to a sick child or family member as a result of COVID-19.

Businesses

CRHP – Canada Recovery Hiring Program — this was essentially the replacement for CEWS. They are proposing to extend it until May 2022 for eligible employers with revenue losses of 10% and to increase the subsidy rate to 50%.

CEWS – Canada Employer Wage Subsidy — This is effectively replaced by CRHP (above), and you will only qualify for CEWS if you are in the tourism or hospitality industry or in another industry that is still suffering to an extreme degree. You will have to have 40% or more decline in revenues for the first 13 periods of CEWS AND now as well.

CERS – Canada Employer Rent Subsidy — This is winding down significantly and will have pretty much the same requirements as CEWS.

Which Are You Eligible For?

You could figure it out yourself, but why do that? Your time is valuable. Come see us and we will be happy to help you make sure you get everything you’re entitled to! Book an appointment today to learn more.

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.