The Canada Revenue Agency (CRA) launched the Canada Emergency Response Benefit (CERB) as the flagship COVID-19 program by the Canadian government in 2020. CERB became a lifeline for Canadians who lost income due to the pandemic. The program ended on September 27, 2020, and made way for CERB replacements.

The federal government revamped the Employment Insurance (EI) system and introduced the Canada Recovery Benefit (CRB) to transition Canadians still in need of financial aid. With no visible end to the pandemic, despite hopeful developments on the vaccine front, the government announced two major updates for EI and CRB.

Maximum duration

Many CRB recipients are due to exhaust their benefits on March 27, 2021. The government’s announcement to update CRB and EI came right on time. One of the changes introduced by the CRA will be an extension of CRB from the original 26 weeks to 38 weeks. For regular EI benefits, the CRA has extended the period to 50 weeks for claims made between September 27, 2020, and September 25, 2021.

The federal government also extended the Canada Recovery Caregiving Benefit (CRCB) and Canada Recovery Sick Benefit (CRSB). The CRCB duration is also 36 weeks after the update, while the CRSB has been extended from two to four weeks.

CRA cash benefit amount

The CRA pays $1,000 for each two-week CRB eligibility period, which is actually $900 after the 10% withholding tax is deducted at the source. For self-employed individuals who prefer access to their EI benefits through Service Canada, the government has reduced the self-employed income threshold (for 2020 earnings) from $7,555 to $5,000.

You can earn income while you receive CRB, provided that your annual income for the calendar year will not go over $38,000. You will need to pay 50% of each dollar of your income that goes above $38,000.

If you qualify for the EI benefit, the minimum amount you can receive per week is $500 (subject to a 10% tax on payment), but some people may be eligible to receive up to $573 per week, depending on their previous income. The proceeds for both CRSB and CRCB are $450 per week (subject to a 10% withholding tax upon payment).

Source: CRA


Events & Sponsorship

Toronto Entrepreneurs Conference @ Mississauga

May 08, 2019 Our B.E.S.T. (Business Entrepreneurs Services Team) Group has participated in this event for first time. Toronto Entrepreneurs Conference and Trade Show is the largest Entrepreneurs event in Canada. The event which targets business owners, partners or...

Hispanic Fiesta 2018

September 04, 2018 RGB Accounting will participate in this event for a second year in a row. Hispanic Fiesta will be held at Mel Lastman Square in Toronto during the Labour Day Weekend, August 31st, Sept. 1, 2, & 3, 2018. Hispanic Fiesta is a four-day celebration...

Secure Your Future Seminar 2018

June 20, 2018 This event gathered business owners running a small or medium-sized business, self-employed and incorporated businesses willing to learn tax saving strategies to help them utilize their company assets to secure their retirement. We are proud of having...

2nd Latino Business Expo Show

May 19, 2018 The 2nd Latino Business Expo Show held on May 19th at Daniels Spectrum gathered a wide range of entrepreneurs and business owners avid to learn how to take their businesses to the next level. RGB Accounting participated as vendor and speaker at this...

Hispanic Fiesta 2017

September 04, 2017 Hispanic Fiesta, a celebration of Spanish and Latin-American: Arts, Food, Music and Entertainment, is a four-day celebration filled with the splendid sounds, tempting treats and colorful culture featuring 300 local, national and International...

Articles & Publications

Shareholder Owners Salaries vs Dividends

Shareholder Owners Salaries vs Dividends. Which Method is Better for You?   When is it better to pay yourself a salary vs. dividends as the owner/manager of a corporation?  Each method has pros and cons, and as a business owner, you should be aware of your options...

Understanding the Shareholder Loan

Understanding the Shareholder Loan. How to Use it to your Advantage and Stay Compliant with CRA If you are the owner-manager of a corporation, understanding the concept of the shareholder loan is essential to running your business. Below I will explain what a...

GST/HST for digital economy businesses

GST/HST for digital economy businesses Overview New rules for digital economy businesses are in effect as of July 1, 2021. As of July 1, 2021, digital economy businesses, including digital platform operators, may have potential goods and services tax/harmonized sales...