CERB | Smof Investment Manager, LLC https://www.you-first.com Fri, 25 Sep 2020 23:52:53 +0000 en-US hourly 1 https://www.you-first.com/wp-content/uploads/2017/10/favicon.jpg CERB | Smof Investment Manager, LLC https://www.you-first.com 32 32 CERB 2.0: The Canada Recovery Benefit https://www.you-first.com/cerb-2-0-the-canada-recovery-benefit/ Fri, 25 Sep 2020 23:39:04 +0000 https://mammoth-seashore.flywheelsites.com/?p=7794 As the CERB winds down, a new program has been proposed to take its place. The Canada Recovery Benefit aims to be effective for 1 year, as of September 27, 2020 and will provide up to $500 per week for 26 weeks to workers not eligible for EI – mainly gig economy & self-employed individuals.... Read More

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As the CERB winds down, a new program has been proposed to take its place. The Canada Recovery Benefit aims to be effective for 1 year, as of September 27, 2020 and will provide up to $500 per week for 26 weeks to workers not eligible for EI – mainly gig economy & self-employed individuals. This benefit is taxable.

Such individuals unable to return to work due to COVID-19, or those who have reduced income versus pre-COVID-19 times would be eligible.

To be eligible, you must be a Canadian resident who:

  • Is at least 15 years old with a valid Social Insurance Number
  • has stopped working due to the COVID-19 pandemic and are available and looking for work; or are working and have had a reduction in their employment/self-employment income for reasons related to COVID-19
  • is not eligible for EI
  • had employment and/or self-employment income of at least $5,000 in 2019 or in 2020 and
  • has not quit their job voluntarily

Eligible applicants can even receive the benefit while earning some income, so long as other eligibility criteria continue to be met.

The program intends to encourage people to return to work if possible. Once 2020 income (excluding the Canada Recovery Benefit) reaches $38,000, they would repay their benefit on future income at a rate of $0.50 to the dollar. In other words, benefit recipients would need to repay $0.50 of the benefit for each dollar of their annual net income above $38,000 in the calendar year to a maximum of the amount of benefit they received. In this manner, only those who need the benefit the most end up receiving it.

Scenario for the Canada Recovery Benefit: Self-employed worker whose business is affected by the COVID-19 pandemic

  • Jack is a self-employed bookkeeper in Victoria, BC
  • He earned $34,000 in 2019 but his business has slowed due to COVID-19
  • Jack applied for and received the Canada Emergency Response Benefit (CERB) but his benefits will run out in September
  • While his business has begun to rebound, it is still not business as usual and he is only back to working at 40% capacity

What could Jack qualify for:

  • With the Canada Recovery Benefit, he could receive $500 per week for up to 26 weeks. If his annual net income for 2020 is above $38,000 (excluding the Canada Recovery Benefit payments), he would need to repay some or all of the benefit when he files his annual income tax return for 2020

This benefit is pending the passage of legislation in the House of Commons and Senate. More details will be made available soon.

Source: Canada.ca

This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.

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Tax Payment Deadline Extension, CERB and CEWS Program Updates https://www.you-first.com/tax-payment-deadline-extension-cerb-and-cews-program-updates/ https://www.you-first.com/tax-payment-deadline-extension-cerb-and-cews-program-updates/#respond Tue, 11 Aug 2020 19:14:41 +0000 https://mammoth-seashore.flywheelsites.com/?p=7685 There continue to be many important updates regarding financial aid and CRA tax deferrals. Below is a quick summary of the recent news: Tax payment deadline: Two weeks ago, the payment deadline was re-extended by one month from September 1st to September 30th for those who either have a balance owing on their 2019 tax return,... Read More

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There continue to be many important updates regarding financial aid and CRA tax deferrals. Below is a quick summary of the recent news:

Tax payment deadline: Two weeks ago, the payment deadline was re-extended by one month from September 1st to September 30th for those who either have a balance owing on their 2019 tax return, or who have to make 2020 instalments.

CRA said that it will not charge penalties or interest if payments are made by the extended deadline of September 30th. This includes the late-filing penalty as long as the return is filed by September 30th.

Those of you who deferred your March 15th and/or June 15th instalments will be able to defer your September 15th payment as well.

CERB: In July, CERB eligibility was extended from four to six benefit periods. Those eligible for the benefit can claim for up to six, four-week periods.

Nearly one in four Canadians have used the CERB. With the program soon winding downand transitioning back to EI, the Federal government has pledged to create a parallel benefit for contract and gig workers. Details are still scarce at this point, but we will update you when they come out.

Wage Subsidy: The wage subsidy program has been extended until December 19, 2020, but with major changes to the program. You can read more about this in our earlier blog posting here.

Sources: Global News, InvestmentExecutive.com

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