When the coronavirus pandemic arrived in Canada, it was a shock to almost everybody. Soon after it arrived, it was clear that the virus was spreading and the economy would have to shut down. This caused massive economic impacts and forced the government and Canada Revenue Agency (CRA) to introduce the Canada Emergency Response Benefit (CERB).
The CERB has been an extremely popular and successful program from the CRA. It was crucial to keep money in Canadians’ pockets and went a long way to keeping the economy robust. However, the government can’t give away money forever.
Now, the government has decided it’s time to switch its focus. After months of learning about and dealing with the pandemic, it’s no longer time for reactionary measures. Instead, the government is focused on proactive measures to help strengthen the economy as we progress toward the end of the pandemic.
The focus has shifted to subsidizing corporate payrolls and incentivizing job creation — a prudent move, in my view.
However, the situation isn’t perfect for everyone, and the government has recognized it’s paramount to leave numerous options for Canadians still being impacted by the coronavirus.
New CRA benefits to replace CERB
While most Canadians can switch to Employment Insurance (EI) as CERB runs out, the government knows that some won’t be eligible. That’s the reason for the recently introduced Canada Recovery Benefit (CRB). The CRB is an alternative for those who aren’t eligible for EI.
The government has recognized it will be a long time before things get back to normal. So, it introduced the CRB benefit of $500 a week, similar to the CERB.
These benefits began at the end of September and will run for one year until the end of September 2021. Whoever is eligible can claim the CRB for up to 26 weeks over that 52-week span for a maximum of $13,000.
One thing to note is that you can claim the CRB, even if your monthly income exceeds $1,000, that’s different than CERB. However, you won’t be eligible if your annual income exceeds $38,000 before accounting for CRB.
So, the CRA can take back part of your benefit if your annual income exceeds $38,000.
Other CERB successor programs
In addition to the CRB program, even if you aren’t out of work, you may require some support for the government if you or someone you know is off work due to COVID-19. You could have an outbreak in your workplace, or even catch it yourself, forcing you to miss work and putting you in a tight spot financially.
Anyone can contract coronavirus, so we all must have easy access to support from the government. To do this, the government has introduced two new benefits for Canadians.
First, for employees who get sick, infected with the virus, or who maybe just show symptoms and therefore need to self-isolate or quarantine, the government introduced the Canada Recovery Sickness Benefit (CRSB). This will ensure Canadians will receive $500 per week for up to two weeks — the length of quarantine.
The other program the government introduced is the Canada Recovery Caregiving Benefit (CRCB). This is for those Canadians who may miss work due to a child, dependent, or family member they have to care for due to COVID-19. This is also a $500-per-week benefit.
Bottom line
The pandemic has been devastating and has impacted everyone, but the government is here to help. CERB got us through the first part; now, it’s time for these new programs to get us through the next stage.
These benefits are crucial to support Canadians — some of which may otherwise have to sell their TSX stocks, such as Shopify, at a time when the stock is one of the hottest on the market.
It’s paramount to avoid selling stocks for any reason, so it’s crucial you take advantage of the benefits offered to you by the government.
