Tax Measures Under Canada’s COVID-19 Economic Response Plan
- Employment and self-employment.
- Workers who are not eligible for EI can include maternity and parental benefits under the EI program and/or similar benefits paid in Quebec under the Quebec Parental Insurance Plan.
- Non-eligible dividends (generally, those paid out of corporate income taxed at the small business rate).
Workers cannot receive both EI and CERB for the same period. Workers already receiving EI regular benefits will continue to receive these benefits until the end of the benefit period. Workers who qualify for EI and who have lost their job can continue to apply for EI. Workers should also continue to apply for other EI benefits, including maternity, parental, caregiving, fishing and worksharing. Claims by workers who became eligible for EI regular or sickness benefits on March 15, 2020 or later, will be automatically processed through the CERB. Starting April 6, 2020, a single portal[47] assists workers with both CERB and EI applications and guide workers to the appropriate benefit. Workers who were eligible for EI retain their eligibility to receive EI once they stop receiving the CERB, and the period during which they received the CERB does not impact EI entitlement.
On April 15[48], 2020, the federal government extended the scope of the CERB to seasonal workers who have exhausted their right to regular EI benefits, and who are unable to undertake their regular seasonal work due to the pandemic. Workers who have recently exhausted their regular EI benefits and are unable to find employment or return to work due to the pandemic also now have access to the CERB. In addition, artists may receive royalty payments for copyrighted works produced before March 1, 2020, while collecting the CERB. These modifications are retroactive to March 15, 2020.
In guidance published on April 21[49], 2020, the CRA stated that where an employer rehires an individual who received or continues to receive the CERB during an eligibility period that overlaps with any period during which the employer claims the CEWS in respect of the rehired individual, such individual may have to repay some or all of the CERB.