Are you looking for the Canada Recovery Benefit or CRB information? Well, here it is.
With the start of the COVID-19 second wave (Justin Trudeau recently made the official announcement to media, confirming the start of the second wave in Canada) and the Canadian economy still looking gloomy with millions unemployed and working for fewer hours than before, it can’t get any worse than this.
The Canadian Government is doing every bit to help people and businesses thrive through this hard phase of mankind.
While CERB (Canada Emergency Response Benefit) is phasing out after 28 weeks of payments, 3 new programs are introduced by the Canadian Government. One of them being, CRB.
Along with CRB, there are three new programs introduced as part of the Canadian Economic Response Plan. They are the Canada Recovery Sickness Benefit (CRSB), Canada Recovery Caregiving Benefit (CRCB) and the all-new EI program.
It is important to know that, at the time of writing this article, CRB is still pending the passage of legislation in the House of Commons and Senate. More details will be made available soon. So make sure you bookmark this page for the latest updates on the Canada Recovery Benefit (CRB).
So what exactly is CRB? Is it similar to CERB? How is CRB different from EI? Is applying to CRB similar to CERB or any different? Are the payments upfront as in CERB or retro? These are some of the questions you might have and I’ll try to address them in this article. (even through examples where necessary).
Simply put, CRB or the Canada Recovery Benefit is available for up to 26 weeks starting from September 27th. It is a $500 weekly benefit (similar to what CERB paid). Initially, the CRB benefit amount was fixed at $400 per week, however, with the start of the COVID second wave, the amount was bumped up to $500 per week.
With CRB, you’ll be looking at getting a maximum of $2000 per month.
Quick Updates Regarding CRB Start Dates (Official announcement):
The CRB benefit is administered by the Canada Revenue Agency (CRA).
If you are eligible for CRB, you’ll payments up to $1,000 ($900 after taxes withheld) for a 2-week period.
If your situation continues the past 2 weeks, you will need to apply again. You can apply for a total of 13 eligibility periods (26 weeks) between September 27, 2020, and September 25, 2021.
For complete details regarding CRB, visit the link here (official Government Of Canada link).
Important CRB Updates (12th October 2020)
As you all might know, application to the CRB opens from today.
People trying to apply for the CRB are not able to do so.
In case you are trying to login to the CRA My Account and clicking on the CRB link, you’re doing it right. That’s how you apply for the CRB payments.
If you are applying to CRB, you might be getting error codes Ref. code: COV-037 or Ref. code: COV-026. If you are receiving one of these error codes, please do not worry. It’s happening to everyone out there trying to apply for the benefit payments.
Looks like, It’s a CRA system glitch and needs to be fixed in the backend. Today being a holiday and Thanksgiving, the only hope is that the fix will be done tomorrow. Stay tuned for the complete CRB updates!
CRB Updates – October 12th, 3:18 PM
The CRA’s CRB is now back online and you can apply for the benefit. The technical glitch seems to be fixed now.
Here’s how to apply for CRB:
Login to your CRA My Account. (Using one of the two options available)
Click on the “Apply for Canada Recovery Benefits” link in the account homepage.
On the next page, select the third option “You lost some or all of your employment or self-employment income for a reason not listed above and you are not eligible for Employment Insurance benefits – Apply for the Canada Recovery Benefit”. Click on next.
Select all the CRB options applicable to you and the eligibility period (September 26th – October 10th). Confirm your banking information and click on next.
That’s it, you’ll get the confirmation message that $900 will be deposited to your bank account within 5 business days. (Remember that CRB works retro-active and the Government deducts 10% tax upfront before making the payments).
CRB Updates (October 26th, 9.00 AM)
You can now apply for the second period of the CRB benefit payments (October 11th – 24th, 2020). In case you are not aware, CRB benefit is only available for 13 periods (26 weeks), even though the program is open for 52 weeks or 1 year.
So make sure you apply only for the periods you are eligible for.
Continue reading the article further below to know more about CRB.
CRB Updates (November 7th)
The third benefit payment period for the Canada Recovery Benefit or the CRB will begin tomorrow, November 8th for the previous two weeks period (retro payments).
So make sure if you’re still eligible to apply tomorrow. Once applied, you should be getting the CRB payments within 5 business days at the max.
You can apply for the CRB benefits through the “My CRA Account” and always link your bank account to the CRA account so that the payments are faster.
What Is The Canada Recovery Benefit? (CRB)
First of all, CRB stands for that Canada Recovery benefit. It is replacing CERB from the end of September. (27th September to be exact when it’ll begin, once CERB ends on 26th.)
For those of you who are not eligible for the new EI system in place and the other Economic Response plans, CRB is the answer for you with up to $500 weekly or $2000 monthly payments you might be eligible for.
The new Canada Recovery Benefit would be effective from September 27, 2020 for one year and would provide a benefit amount of $500 per week for up to 26 weeks to workers who are not eligible for EI, mainly the self-employed and including those working in the gig economy.
Remember that, CRB is replacing the Canada Emergency Response Benefit from September 27th, 2020.
CRB applications are open from the October 12, 2020.
If you’re still financially affected due to the pandemic and depend on the Government supplement then CRB is pretty much the answer you have.
However, there are a few eligibility requirements you need to meet to apply for CRB.
Let us take a look at that in the next section.
You are eligible to receive the Canada Response Benefit (CRB) if you meet the below guidelines:
First and foremost, to be eligible to receive CRB payments, you must not be eligible for the new EI program. If you have been applying for CERB through Service Canada, you’ll most probably be transferred automatically to the new EI. In case you have been applying for CERB through CRA, then you need to apply for the EI or CRB, just like you did for CERB when it first began.
You must reside in Canada while receiving the CRB amount.
You are at least 15 years of age and have a valid Social Insurance Number (SIN)
You have stopped working due to the COVID-19 pandemic and are available/actively looking for work; or
You are currently working and have had a reduction in your employment/self-employment income for reasons related to COVID-19 alone
You had employment and/or self-employment income of at least $5,000 in 2019 or in 2020
You have not quit your job voluntarily.
Like I said before, most of the eligibility guidelines are as per CERB. No major changes that I can see or find here.
The new $500 a week Canada Recovery Benefit is available to individuals 15 and over and who had earned at least $5,000 in employment income during the 12-month period prior to their application.
If a claimant earns more than $38,000 in income for the 2020 or 2021 tax year, they must repay 50 per cent of every dollar earned above that threshold in that year, up to the total amount of recovery benefits received.
So, if you were eligible for CERB and continue to meet the above guidelines, you should be eligible for CRB as well.
How To Apply For CRB?
Just like CERB, you can apply for CRB by logging into your CRA My Account.
If you log in today, you’ll find no link to the CRB.
Starting September 27th, from when you can start applying for the CRB benefit amount, you should see an update on the CRA My Account page. At this moment, there is not much information available apart from the basic high-level guidelines.
To apply for CRB, starting September 27th, please follow the below steps:
Login to your CRA My Account
Click on the CRB Link (Probably it will be the same as the CERB link now and should be easily available on the CRA account homepage)
Follow through the questionnaires and you’ll need to self attest for minimum income requirements and eligibility conditions
Submit your CRB application for review and wait for the CRA response.
Comparing CRB to CERB, there is one change though, even though the benefit amount is the same at $2000 per month. For CRB, you’ll need to apply after every 2 weeks to keep getting the benefit amount.
As per Reddit user: The first period will be Sept 27 – Oct 10. Because you can only apply 2 weeks after the eligibility period (this is different from CERB), expect the application to be available October 11 and money coming in within that week.
Do remember, while applying for CRB you’ll need to attest that you’ll continue to meet the CRB guidelines and requirements. Also, you need to continue looking for and accepting new work.
The CRB benefit is taxable.
Let me break it down further, with CERB, you could basically apply once at the start of the eligibility period and get the $2000 into your bank account in a matter of 3-5 business days (upfront payment)
Whereas with CRB, its retro payments, you’ll get paid after 2 weeks for the payments you are eligible for. So in the case of CRB, you will get $1000 once every two weeks, though the overall monthly payment is $2000. (same as CERB). I really hope it’s clear for everyone.
Since CRB is different from EI (employment insurance), I don’t think you’ll have to file the Internet Reporting once every two weeks. Coz, CRB is for people not eligible for EI in the first place.
If you’re looking for the step-by-step instructions on how to apply for CERB or CRB (which is very similar), you can check out my CERB article where I have outlined the step-by-step guide to apply for CERB. (Canadian Emergency Response Benefit). Below is the link:
In case you are looking to apply for the Canada Recovery Sickness Benefit (CRSB), here’s the article link:
Quick Updates: (As of 9th October, 2020)
You can visit the following canada.ca link (answer a few questionnaires and check your eligibility) to see the latest updates on how to apply.
Remember applications for CRB is open from the October 12th for the prior two weeks.
CRB Payment Periods
Remember, each CRB eligibility period is a 2-weeks with a specific start and end date.
You may apply on the immediate Monday after the previous 2-week period has ended. If your financial situation continues to be the same, you must re-apply for another 2-week period.
In case you need to, you can also apply for the CRB retroactive payments for any period up to 60 days after that period has ended.
Your CRB Eligibility ends after 13 periods of payments.
The total benefit period is from September 27, 2020, to September 25, 2021. You can no longer receive CRB payments after you have reached the maximum of 13 periods or 26 weeks (each period is 2 weeks or $900 after taxes).
I’ve attached the screenshot below (from CRA) which covers all the CRB eligibility periods. (Hope it’s helpful)
Similar to CERB, CRB has clawbacks as well.
To ensure that the benefit targets those who need it most, claimants would need to repay some or all of the benefit through their income tax return if their annual net income, excluding the Canada Recovery Benefit payment, is over $38,000.
In other words, claimants 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.
Here’s an example to illustrate the CRB clawback better:
Let’s say Adam is a self-employed bookkeeper in Toronto, ON
He earned $36,000 in 2019 but his business has slowed due to COVID-19
Adam has applied for and received the Canada Emergency Response Benefit (CERB) but his benefits will run out in September (26th September)
While his business has begun to rebound, it is still not business as usual and he is only back to working at 30% capacity
What Adam could qualify for with CRB:
With the Canada Recovery Benefit or CRB, Adam could receive $500 per week for up to 26 weeks. If his annual net income for 2020 is above $38,000 (excluding the CRB payments), he would need to repay some or all of the benefit when he files his annual income tax return for 2020.
Let’s say for example, a worker who received 10 weeks of the Canada Recovery Benefit in 2020 for a total of $4000, would have to repay all of the benefit if their net income exceeded the threshold by $8000 (twice the benefit payment amount).
While the Government of Canada is doing its best to help Canadian families stay afloat during the pandemic, it is the responsibility of all of us to actively acknowledge, help and support the ones in need. These are tough times for everybody.
While CERB is phasing out this month on 26th, people still looking out for work should hopefully find one soon. But with the beginning of the second wave, everything looks and feels gloomy again with no signs of the vaccination.
To summarize, CRB is starting from the 27th of September and is available to help the needy and those affected by the pandemic. If you meet the eligibility guidelines, please apply for one. starting tomorrow.
Do make sure to opt for direct bank payments on the CRA website, it’ll only make the process faster and you’ll receive the benefits sooner.
Thanks for reading and do let me know your thoughts and questions if any below.
Share this article with friends and family, looking for CRB information.
Top 10 Popular Posts Of All Time
- Top 30 Canadian Blue Chip Stocks You Should Own
- How To Use A My Service Canada Account
- How To Watch Free TV Shows In Canada – List of 10 Best Sites
- VGRO Review – Vanguard’s Best Growth ETF Portfolio
- Top 7 Canadian ETFs You Should Own
- Top 150+ Dividend Stocks In Canada – Complete List
- Credit Karma Canada Review – Free Credit Score And Report
- CPP Payment Dates – How Much CPP Will You Get?
- Top 5 High-Interest Savings Accounts In Canada
- How To Open A CRA My Account?
Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.