CERB Rejection: 3 Ways You Could Be Rejected for the $4,000 Extension!

Aside from attesting the government is encouraging you to seek work actively, you must meet the eligibility requirements to receive $4,000 extra CERB. If you seek lasting income, consider investing in the Emera stock.

| More on:
Coronavirus 2019-nCoV Blood Samples Medical Concept

Image source: Getty Images

The Canada Emergency Response Benefit (CERB) is a tremendous financial relief for Canadian workers displaced by the COVID-19 outbreak. Since March 2020, the Canada Revenue Agency (CRA) has been dishing out $2,000 monthly for up to four months to individuals in dire need.

Statistics Canada reported a record-high 13.7% unemployment rate in May 2020. Because the pandemic is still raging and CERB recipients are exhausting their benefits in July, the federal government extended the program for another two months. If you reapply, you can get $4,000 more.

However, there are ways the CRA can reject your application for the CERB extension. It would be best to review the rules beforehand to ascertain your claim is not for naught.

Same eligibility period

The CRA is following eligibility periods, which is every four weeks. Ensure you do not apply for or receive CERB from the CRA or Employment Insurance (EI) benefits from Service Canada for the same eligibility period. The rule is you should re-apply in the next period. You must also file one application only, either with the CRA or Service Canada, not both.

With employment income

CERB is for the unemployed and those working reduced hours due to the pandemic. You can be working and still receive CERB provided your employment, or self-employment income (before deductions) does not exceed $1,000 monthly. Furthermore, you expect the situation to continue during the entire four weeks.

False claim

The CRA is stricter in scrutinizing CERB applications and conducting background checks. You should be truthful and not hide relevant information or provide wrong information. If you receive payments and the CRA finds out, they will claim back your CERB.

Limitless income

Canadians feel a sense of loss with CERB winding down in August. At the onset, it was clear the taxable benefit is for emergency use only. If you want limitless payments, look to invest if your finances will allow. A utility company like Emera (TSX:EMA) is a dependable income-provider. The business model is low risk, so you also have capital protection.

This $13.35 billion company serves end-users of electricity, gas, and other utility energy services in North America and the Caribbean. Over the last two years, the average total revenue and net income are $6.3 billion and $727 million. In 2020, the run-rate is $5.9 billion top line and $919 million.

Would-be investors shouldn’t worry about Emera’s financial stability since the demand for energy and accompanying services is constant, if not increasing. At present, the stock pays a 4.50% dividend. A $25,000 initial stake will deliver $1,125 in passive income. It could be your emergency money for the long haul.

Emera is displaying resiliency once more amid the 2020 pandemic. The stock price is nearly flat ($54.55) since the start of the year. It means COVID-19 didn’t impact at all on the business as well as on investor confidence.

Lasting lifeline

Millions of Canadians don’t want CERB to go, but it was good while it lasted. The program was successful and served its purpose. However, it’s not the end of a lifeline. You can replace CERB with lasting, not temporary, income through dividend investing.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned.

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »