CRA Covid-19 Benefits

Canada Recovery Benefit

Link: Canada Recover Benefit

The Canada Recovery Benefit is the newly introduced replacement for the now defunct Canada Emergency Response Benefit. It replaces the CERB but only if a person is not eligible to be covered by their Employment Insurance.

The benefit pays out $1000 every two weeks, with tax deducted at source, for up to 26 weeks. As with CERB the application for CRB is through My Account and must be re-applied every two weeks.

One-time Payment for Seniors

Link: One-time tax-free payment for seniors

This one-time payment provides financial support to help you cover increased costs caused by COVID-19:

  • $300 for seniors eligible for the Old Age Security pension, and
  • an additional $200 for seniors eligible for the Guaranteed Income Supplement
  • If you receive the Old Age Security pension and the Guaranteed Income Supplement, you will receive a single payment of $500.

You do not have to apply. This payment will be issued as soon as possible.

Canada United Small Business Relief Fund

Link: Canada United Small Business Relief Fund

Background Information:

  • Grant covers funding up to $5000
  • Is a dollar for dollar reimbursement of PPE, COVID required renovations, and website and e-commerce expenses to make the business viable online and over long distances (monthly costs associated with pre-existing e-commerce platforms are not eligible).
  • Can only apply ONCE for the relief fund
  • New application window starts Monday October 26th

Eligibility for the Relief Fund:

  • Be incorporated or operating as a sole proprietor/partnership in Canada as of March 1, 2020.
  • No more than 75 employees.
  • Have minimum annual sales of $150,000 and not more than $3,000,000.
  • Have $1,000,000 of commercial general liability insurance (self reported).
  • Be in full compliance with all applicable government laws, rules, regulations, guidelines and other legally binding measures (self declaration).
  • Be in operation after September 1, 2020 (grant recipients must sign a declaration included in the approval letter to confirm).
  • Must attach all necessary receipts and invoices, accompanied with proof of payment, with the application

Canada Emergency Response Benefit

Even though the CERB has ended, the CRA is continuing to accept and process retroactive applications until December 2, 2020.

Periods 5 to 7: You can apply through the CRA’s My Account or automated toll-free phone line at 1-800-959-2019 or 1-800-959-2041.

Periods 1 to 4: You can apply by speaking to one of our agents at 1-800-232-1966. Please note that you may be required to provide additional documentation to the CRA prior to your application being approved.

Canada Recovery Sickness Benefit

Link: Canada Recovery Sickness Benefit

The CRSB is intended to support workers who are sick or must self-isolate for reasons related to COVID-19.

It will provide $500 per week (taxable, tax deducted at source) for up to a maximum of two weeks, for workers who are unable to work for at least 50% of the week because they contracted COVID-19, self-isolated for reasons related to COVID-19, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19.

This benefit will be paid in one-week periods.

There is a similar benefit for those who lose income because they are caring for a relative affected by COVID-19, it is called the Canada Recovery Caregiving Benefit

Temporary Wage Subsidy

On March 18, 2020, the Prime Minister announced a temporary 10% wage subsidy. For employers that are eligible for both the Canada Emergency Wage Subsidy and the 10% wage subsidy for a period, any benefit from the 10% wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period.

Canada Emergency Wage Subsidy

The proposed Canada Emergency Wage Subsidy would cover 75 per cent of salaries for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. Employers of all sizes and across all sectors of the economy would be eligible with the exception of public sector entities.

This program is designed to help employers hardest hit by the COVID-19 pandemic to keep and retain workers.  A special rule will apply to employees that do not deal at arm’s length with the employer. 

Organizations that do not qualify for the Canada Emergency Wage Subsidy may qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, 2020.

About Support for Families

While schools and child care centres are closed, parents can apply for direct funding to offset the cost of buying materials to support their children’s learning, while they practice self-isolation and physical distancing.

Eligible parents will receive a one-time per child payment of:

  • $200 for children aged 0 to 12
  • $250 for children or youth aged 0 to 21 with special needs

This funding can help parents with the costs of work books, educational apps, educational subscription services, movies and other tools to support learning at home.

Parents refers to parents, guardians, and caregivers.

Canada Emergency Business Account (CEBA) interest-free loans

The Canada Emergency Business Account (CEBA) provides interest-free, partially forgivable, loans of up to $60,000, to small businesses and not-for-profits, that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes and wages.

We have recently expanded CEBA to include an additional interest-free $20,000 loan, 50% of which would be forgivable if repaid by December 31, 2022.

This means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid by December 31, 2022.

Business owners can apply for support until March 31, 2021 through their banks and credit unions.

Ontario Small Business Support Grant

Starting at $10,000 for all eligible businesses, the grant provides businesses with funding to a maximum of $20,000 to help cover decreased revenue expected as a result of the Provincewide Shutdown.

The business must demonstrate they experienced a revenue decline of at least 20 per cent when comparing monthly revenue in April 2019 and April 2020. This time period was selected because it reflects the impact of the public health measures in spring 2020, and as such provides a representation of the possible impact of these latest measures on small businesses.

Businesses that are not eligible include essential businesses and those that were already required to close prior to the introduction of modified Stage 2 measures on October 10, 2020.

For questions regarding this grant please contact our office.

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