The New Canada Emergency Rent Subsidy (CERS) – Starts Today

A businesses space with a for rent sign to denote need for struggling businesses to apply for the new Canada Emergency Rent Subsidy program.

The New Canada Emergency Rent Subsidy (CERS) program begins to take applications today. Businesses that are struggling due to COVID-19 can now apply for this subsidy. To apply, you can go to the government of Canada’s website.

What is the New Canada Emergency Rent Subsidy (CERS)?

The new CERS program (Canada Emergency Rent subsidy) is a rent or mortgage subsidy for Canadian businessesnon profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic. The time period that the subsidy will cover is September 27, 2020 to June 2021.

The government’s website indicates that the subsidy will cover up to 65% of qualifying expenses. There is also an additional 25% of rent support for businesses, not profit organizations or charities that have been especially hard hit by mandatory public health orders. As a result, the hardest hit businesses can potentially receive a total rent subsidy of up to 90 %. These subsidy rates are in effect until December 19, 2020.

The new subsidy program payments will be made directly to qualifying renters or property owners without needing the participation of landlords. This is a change from the previous program where the landlords had to apply for the program and as a result the expected participation for the previous program was low.

Conclusion

The new Canada Emergency Rent Subsidy will be a welcome sight for many Canadian businesses. With the second wave of COVID-19 spiking all over the country, more restrictions and potential lockdowns seem inevitable. As a result, many struggling businesses are going to continue to struggle to keep afloat. Hopefully, this new program can help take some of the sting of the financial losses that will come with those further lockdowns. Unlike the last wage subsidy program, the government’s hope is that many more businesses will apply. Will this help? As the old saying goes, any help is good help but only time will tell. Please stay safe.

When Will Canada Child Benefits (CCB) be Paid in 2020? CCB Payment Dates

Picture of children by the lake to denote when will Canada Child Benefits (CCB) will be paid in 2020.

When will Canada Child Benefits be paid out for the rest of 2020? It is an important question for people with children because for many expenses are up. There are a few reasons for this such as children returning to school and uncertainty of job stability due to COVID-19 cases rising everywhere. Also, for many there is the holiday season and the costs associated with that. So it is important for families to know when they will see their CCB benefits so they can plan accordingly.

When Will Canada Child Benefits (CCB) be Paid in 2020?

Here are the dates each month that CCB payments will be made to families from the Government of Canada’s website below for the rest of 2020:

-September 18, 2020

-October 20, 2020

-November 20, 2020

-December 11, 2020

As noted from above, December’s payment will come a bit earlier. And a couple of additional notes from the government’s website. First, you will not receive a monthly payment if your total benefit amount for the year is less than $240. Instead you will receive one lump sum payment with your July payment. Second, if you don’t receive your CCB payment on the expected payment date, please wait 5 working days before you contact us.

Conclusion

It is more important than ever in these unstable times to know what you have for money coming in for your family. Knowing when CCB payments will be issued can help you to plan better. Also, it helps you to know when to contact the Government of Canada if there has been any delay. As the old saying goes, knowledge is power. However, in these unstable times it is probably better to say that knowledge is survival. So take care of yourselves and stay safe.

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New Canada Emergency Rent Subsidy – What is it? (CERS details)

A for rent sign to denote the new Canada Emergency Rent Subsidy program for businesses and organizations.

A few days ago the federal government announced the new Canada Emergency Rent Subsidy to help businesses cover their rent due to the continued financial crisis caused by the COVID-19 pandemic. This was good news to the many businesses struggling to stay afloat. What is this new program?

New Canada Emergency Rent Subsidy (CERS) Replaces CERCA Program

The New Canada Emergency Program (CERS) will replace the old Canada Emergency Commercial Rent Assistance Program (CECRA) which ended on September 26, 2020. The biggest change between the two programs was that under the old CECRA program the commercial landlords had to apply for the program for businesses that needed rent relief. And they were under no obligation to apply, often leaving tenants in a very difficult situation.

However, under the New Canada Emergency Rent Subsidy Program, the government will now directly help the businesses and organizations who need relief. This means that businesses can apply to the program themselves and no longer need their landlords to apply. So what are the details of the program?

Details of Canada Emergency Rent Subsidy Program (CERS)

The program so far is thin on details and even on the government’s website it says that more information will be coming soon. But from the government’s news release on October 9, 2020 and other reports, here’s what has been shared so far.  The new rent subsidy will support businesses, charities and non-profits that have suffered revenue drops by subsidizing a percentage of their expenses on a sliding scale, up to a maximum of 65 per cent of eligible expenses. This will last until December 19, 2020.

In addition to the rent subsidy, there will be a top-up of 25 percent available for organizations that have been temporarily shut down by a mandatory public health order.

When Will it Start? Conclusion – CERS for Business owners

There was no indication of when businesses and organizations can apply for this new program. However, when it does finally start, applicants can apply for their subsidy to start retroactively as of September 27, 2020. Once the government announces when people can apply, we will provide an update.

The new wage subsidy program is a potential relief for businesses and organizations that are struggling to survive during these unprecedented times. Hopefully, more details will become available shortly as the situation is dire for many businesses. And with COVID-19 cases on the rise again, the financial future seems more uncertain than ever. Stay safe.

When Will New COVID-19 Recovery Benefits Start? (CRB, CRSB, CRCB)

Photo to highlight when will new covid-19 benefits start.

When will new COVID-19 recovery benefits start? The government announced this week that Canadians can start applying for two of the new recovery benefits as of October 5, 2020. The two new recovery benefits are the Canada Recovery Sickness Benefit (CRSB) and the Canada Recovery Caregiving Benefit (CRCB). The third new recovery benefit, the Canada Recovery benefit will start as of October 12, 2020. These three benefits and the new EI benefits replace the Canada Emergency Response Benefits that Canadians were receiving due to the COVID-19 pandemic.

When Will New COVID-19 Recovery Benefits Start? A Quick Summary of New Benefits

Here’s a quick summary of the three new benefits from the government of Canada’s website below:

Canada Recovery Sickness Benefit (CRSB)

The Canada Recovery Sickness Benefit (CRSB) 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.

Canada Recovery Caregiving Benefit (CRCB)

The Canada Recovery Caregiving Benefit (CRCB) will provide $500 per week (taxable, tax deducted at source) for up to 26 weeks per household for workers 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, day-cares or care facilities are closed due to COVID-19, or because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19. This benefit will be paid in one-week periods.

Canada Recovery Benefit (CRB)

The Canada Recovery Benefit will provide eligible workers with $500 per week (taxable, tax deducted at source) for up to 26 weeks for those who have stopped working and who are not eligible for EI, or had their employment/self-employment income reduced by at least 50% due to COVID-19. This benefit will be paid in two-week periods.

Conclusion

When will the new COVID-19 recovery benefits start? Both the Canada Recovery Sickness Benefit (CRSB) and the Canada Recovery Caregiving Benefit (CRCB) start as of October 5, 2020. The Canada Recovery Benefit (CRB) will start as of October 12, 2020. Hopefully these new benefits will provide further help to Canadians who are struggling due to the pandemic. Only time will tell. Stay safe everyone.

When Will CERB Finally End? New End Date and Programs

A picture to denote someone getting ready to crunch their finances based on the question will cerb finally end and the programs to come afterwards.

When will CERB finally end? That has been the million dollar question for the summer of 2020. However, now it seems the government has given a definite answer after extending the program one more time and has laid out plans for other programs to start right afterwards. Let’s look at these details.

When Will CERB Finally End? – CERB Extension and End Date

CERB or the Canada Emergency Response Benefit has been extended 4 more weeks for a total of 28 weeks. The rate is still $500.00 per week. However, the end date of CERB has changed. It is now ending as of September 26, 2020. So the window to collect a potential of 28 weeks goes from March 15, 2020 to September 26, 2020. What happens next?

When Will CERB Finally End? – New Programs Announced

The government announced that as of September 27, 2020, there will be four new programs that Canadians can apply for to help them through the financial crisis caused by COVID-19. They are a new EI program, and three new temporary benefits programs. Let’s take a look at each one these.

Restructured Employment Insurance Program

The government announced that people who are currently are on CERB and who qualify for EI benefits will be transitioned into the Employment Insurance program. This means that if you applied for CERB through Service Canada, you will automatically be set up for EI benefits. If you applied for CERB through CRA, then you would have to apply for EI. So what are the details of the EI program?

Here are some of the details from the government of Canada’s website below:

“EI will now be available to more Canadians, including those who would not have qualified for EI in the past, adding more than 400,000 people into the program.Those receiving EI will be eligible for a taxable benefit rate of at least $400 per week, or $240 per week for extended parental benefits, and regular benefits will be accessible for a minimum duration of 26 weeks. “

How Many Insurable Hours Do I Need to Qualify for EI Benefits?

The Government has lowered the required insurable hours of work to qualify for EI benefits to 120 hours in the last 52 weeks or since your last Employment claim. How can they do this?

First as indicated from their website, they are going to give a person a credit of 300 insurable hours if they are applying for Regular Employment insurance benefits. If someone is applying for special benefits such as sickness or maternity benefits they will receive a credit of 480 insurable hours. So the government is giving a credit to help make up the difference so you can qualify for EI.

Second, the government has established a minimum unemployment rate for the EI program of 13.1% across Canada. What does this mean? It basically means that a person cannot collect anything less then 26 weeks of benefits. Normally, the unemployment rate used was based in the city or area you lived and the lower the rate of unemployment, the lower the minimum weeks that someone could collect.

If I Do Not Qualify for EI Benefits, Are There Other Options?

As previously indicated, if someone does not qualify for Employment Insurance benefits, the government announced three addition programs. Here they are one by one below.

Canada Recovery Benefit – This program is for self employed workers who do not qualify for employment insurance benefits and need income support and who are looking and are available for work. They can be provided with $400.00 per week up to 26 weeks.

Canada Recovery Sickness Benefit – The government will provide up to $500.00 per week for up to two weeks for someone who has to self isolate for reasons related to COVID-19.

Canada Recovery Caregiving Benefit – This program will provide up to $500.00 per week for up to 26 weeks per household to eligible persons who have to take care of a child, family member with a disability or a dependent who cannot attend school or be at a care facility or get other care due to COVID-19.

All of these new programs start as of September 27, 2020 and all are temporary with a duration of one year. For more details on the specific eligibility requirements, please look at the government of Canada’s website.

Conclusion

CERB will finally end on September 27, 2020. At this point the government has revamped the Employment Insurance program and set up three temporary programs to help Canadians transition out of the financial crisis caused by the pandemic. The goal is to get as many Canadians back to work as possible in this time as the financial costs of having so many Canadians on CERB was immense. Will it work? Only time will tell. However, no matter how good the plans may be, everything will be dependent on how COVID-19 affects life and the economy in the fall and winter. And that is the ultimate wild card. Please stay safe.

Canada Emergency Wage Subsidy Extension, New Adjustments and Details

A picture to denote person looking at finances to see if qualifies for the Canada Emergency Wage Subsidy Extension changes.

The Canada Emergency Wage Subsidy extension was passed through Bill C-20 this week. Along with the extension, there are significant changes to the program. I will try to break down these changes as clearly as possible.

Canada Emergency Wage Subsidy Extension

The Canada Emergency Wage Subsidy has been extended until December 19, 2020. Here’s a quote from an article from CPA Canada below:

  • allow the extension of the CEWS until December 19, 2020, including redesigned program details until November 21, 2020

What does this mean? It means that the program is extended until December 19, 2020 but the details of the program only go to November 21, 2020. There are no details yet on how the last four weeks of the program will be administered at this time. So what are the newest changes?

Canada Emergency Wage Subsidy Extension Changes, Elimination of 30% Revenue Test

As of July 5, 2020, applicants for the subsidy will no longer have to have at least a 30% revenue drop to apply for the Canada Wage Subsidy. If you have any kind of revenue drop, you can apply. Many felt that the 30% drop requirement was too strict and due to that, many businesses could not apply. The hope now is that more businesses can apply for the subsidy. However, the subsidy has now changed, with the program now having two components, the base subsidy and the top up.

Canada Emergency Wage Subsidy Extension Changes, Base Subsidy

As of July 5, 2020 , there will be a base wage subsidy for employers to claim for wages. For example, if your revenue drop was 50% or more then you will have a base subsidy of 60% of employees’ wage. If your revenue drop was 49% or less, then your base wage subsidy will be your percentage drop x 1.2 x employee’s wage.

However, this rate is only good for the first two 4 week periods as the rates drop off afterwards. For example, if your revenue drop was greater than 50%, your base subsidy rate in the 3rd 4 week period would drop to 50%, the next 4 week period to 40% and the next one to 20%. The same is true if your revenue extension was 49% or less. In the 3rd 4 week period, your base wage subsidy would be your percentage drop x 1.0 x employee’s wage. In the fourth period you have your percentage drop x 0.8 x employee’s wage. The 5th period you would have your percentage drop x 0.4 x employee’s wage.

Chart of Canada Wage Subsidy Extension Drop

Here’s a chart from the government’s website on the drop that I just described below:

TimingPeriod 5*:
July 5 – August 1
Period 6*: August 2 – August 29Period 7: August 30 – September 26Period 8: September 27 – October 24Period 9:
October 25 – November 21
Maximum weekly benefit per employeeUp to $677Up to $677Up to $565Up to $452Up to $226
Revenue drop     
50% and over60%60%50%40%20%
0% to 49%1.2 x revenue drop
(e.g., 1.2 x 20% revenue drop = 24% base CEWS rate)
1.2 x revenue drop
(e.g., 1.2 x 20% revenue drop = 24% base CEWS rate)
1.0 x revenue drop
(e.g., 1.0 x 20% revenue drop = 20% base CEWS rate)
0.8 x revenue drop
(e.g., 0.8 x 20% revenue drop  = 16% base CEWS rate)
0.4 x revenue drop
(e.g., 0.4 x 20% revenue drop = 8% base CEWS rate)

Canada Emergency Wage Subsidy Extension Changes, Top Up

A second part of the program is a top up available for businesses that have lost 50% or more in revenue. The top-up increases depending upon the revenue to a maximum of an additional 25% subsidy which would be added to the amount of your base subsidy. Here’s another chart from the government of Canada’s website that highlights this below:

3-month average revenue dropTop-up CEWS rateTop-up calculation = 1.25 x (3 month revenue drop – 50%)
70% and over25%1.25 x (70%-50%) = 25%
65%18.75%1.25 x (65%-50%) = 18.75%
60%12.5%1.25 x (60%-50%) = 12.5%
55%6.25%1.25 x (55%-50%) = 6.25%
50% and under0.0%1.25 x (50%-50%) = 0.0%

Canada Emergency Wages Subsidy Extension Changes, Safe Harbour Rule

What is the safe harbour rule? It is when an employer who was on the program prior to July 5, 2020 and was receiving wage subsidy for their employee(s) of 75%. For the next two periods ending August 29, 2020, they will either receive 75% of employee(s) wages or the next base rate plus top up, whichever is greater. However, after August 29th, they would be subject to the new changes fully.

Conclusion

The government’s changes to the Canada Emergency Wage Subsidy does have the potential to help more Canadian businesses. However, it is a short term solution as the program has a “weaning off process” as it pays less and less over time. So there is definitely incentive for businesses to get up and going quickly.

However, there are unknowns based on how quickly certain areas of the economy can recover from the pandemic and if there is another wave or surge. At that point all bets are off and was probably why the government did not provide details for last period going into December. As that is the great unknown. The changes are a bit complicated and will take some time to understand and hopefully more details will be provided in the days ahead.

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When Will CERB End? Canada Emergency Response Benefit program details

Sign saying the end to emphasis question of when will cerb end

When will CERB end? For the over 8 million Canadians who applied for the program, this is a question of upmost importance. The Canadian economy has been hit hard by the pandemic and millions of Canadians were left without work. However in recent weeks, different areas of the country are starting to open up. And people are starting to return to work. In spite of that though, there are millions who still cannot go back to work, because they don’t have a job to go back to, and they are wondering how long their benefits will last.

When Will CERB End? The Program Structure

According to the Government of Canada’s website, the Canada Emergency Response Benefit (CERB) Program goes from March 15, 2020 to October 3, 2020. This DOES NOT mean you can collect CERB benefits for this whole time period. Instead, it means you can collect CERB benefits within this time period.

You are eligible to collect $500.00 per week for a maximum of 16 weeks within the above time period. For example if you start collecting CERB on March 15, 2020 and you went 16 consecutive weeks then your payments would end July 4, 2020. Also, these 16 weeks do not have to be consecutive as long as they all fall into the above time period for the program.

When Will CERB End? Do I Only Need to Apply Once?

The answer is yes you only need to apply once, but you have to declare your eligibility to receive payments more than once. From the Government of Canada’s website, when you are applying for CERB, you are declaring eligibility for a four week period. For example, if you applied for CERB to start on March 15, 2020, you would collect CERB payments for a 4 week period from March 15, 2020 to April 11, 2020.

If you want to keep collecting CERB beyond this date than you would have to declare your eligibility for the next 4 week period. For example, if you applied for the CERB program through CRA than you can do this either online or by phone (1-833-966-2099). If you applied for the CERB program through Service Canada, you do this by completing your EI Report Card to confirm your eligibility to receive CERB for next period.

Will There Be an Extension of the CERB program?

Ah the billion dollar question, literally. There is increased talk about extending the CERB program as many Canadians will see their CERB payments end in early July, and many within this group will still not have work. Regarding the possible costs of extending the CERB program, the recent PMO report was highlighted below:

Budget officer Yves Giroux’s report says simply extending the maximum number of weeks to 28, and extending the program through to January 2021, would cost about $57.9 billion.

You add that figure to the $43.51 billion dollars already paid out in CERB and you are looking at a figure of at least $100 billion dollars that would need to be spent. That is an enormous financial commitment from the government which would then open up a myriad of questions such as who pays for this and so on. As a result, the debate goes on.

Conclusion

When will CERB end? The current answer depends upon your circumstances. However, simply put, it ends either by you collecting the maximum 16 weeks or when you return to work. Whichever comes first. Also, the program currently ends October 3, 2020 so even if you haven’t collected your full 16 weeks by this dates, your CERB ends also.

However, as we can see from the above, this could all change and the program could be extended. But for the time being, this is the program’s parameters currently. And that is important to know, as all of us have to make big decisions regarding our life during this pandemic and subsequent economic crisis. Plan well and stay safe.

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Canada Emergency Student Benefit, What is it?

A picture of a student at university to denote that students will need the Canada Emergency Student Benefit program.

Wondering what the Canada Emergency Student Benefit is? It is an important question to answer if you are a student. As a student, you’re likely wondering how you can earn money this summer during this pandemic. On April 22, 2020, the government outlined a program to help these students in this situation.

What is the Canada Emergency Student Benefit Program?

It is a relief program proposed by the government of Canada to help post-secondary students who aren’t able to find full-time employment or cannot work due to COVID-19. Also, if they are not eligible to receive either Employment Insurance benefits (EI) or the Canada Emergency Response benefits (CERB). Many post-secondary students are not eligible for either of these programs as they have not worked enough to qualify.

How Much Do You Get and For How Long?

Students who qualify would receive $1250 per month for up to 4 months (May 2020 to August 2020). If the student has a disability or has dependents, they can receive an additional $750 per month.

Canada Emergency Student Benefit Program, Who is Eligible?

Here are the details from the Government of Canada’s website below:

  • Students who are enrolled in a post-secondary education program leading to a degree, diploma, or certificate.
  • Students who ended their studies or graduated no earlier than December 2019.
  • High-school graduates who have applied for and will be joining post-secondary programs in the coming months.
  • Canadian students studying abroad meeting one of the above criteria.

When Can I Apply? Update!

You can apply for the program starting on May 15, 2020 at 6 am Eastern time. For more details on how to apply and inputting an online application please go to the Government of Canada’s website.

When Will I Get Paid?

The most important question of course! The Government of Canada’s website says that if CRA has your direct deposit information, your payment will take 3 business days. If not, then a cheque will take about 10 business days.

Conclusion

The Canada Emergency Student Benefits Program is a way to help the many students who cannot find employment. It helps close the gap of students who don’t qualify for Employment Insurance or the Canada Emergency Response Benefits Program. Hopefully the program will be up and running shortly. When we get more details, we will update this page with further information.