On Friday October 2, the COVID-19 Response Measures Act (formerly Bill C-4) received Royal Assent. This legislation creates three new temporary recovery benefits to support Canadians who are unable to work for reasons related to COVID-19.
Canadians will be able to apply through the Canada Revenue Agency (CRA) for the following benefits as of Monday, October 5:
- A Canada Recovery Caregiving Benefit (CRCB) of $500 per week 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 ; and,
- A Canada Recovery Sickness Benefit (CRSB) of $500 per week 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.
These benefits will be paid on a weekly basis, meaning Canadians will have to reapply each week they are eligible.
Effective October 12, the CRA will open the applications for the Canada Recovery Benefit, which will provide eligible workers with $500 per week 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.
To support the delivery of these new recovery benefits, the CRA will provide a simple and efficient attestation-based application process similar to the one that millions of Canadians relied on to access CERB payments. Eligible individuals will be able to apply for recovery benefits online through the CRA’s My Account portal or by phone through the CRA’s automated phone line.
To get ready to apply for the new recovery benefits, Canadians are encouraged to sign up for the CRA’s My Account to ensure that personal information with the CRA is up-to-date, and to register for direct deposit. Individuals are also encouraged to file a 2019 tax return, as this will reduce the likelihood that the CRA needs to request additional information before processing applications.
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