This article is about benefits available during the COVID-19 novel coronavirus emergency. The benefits available to you depend on your health status, and whether you are a worker. New announcements could change the relevance of this information at any moment. It is current to June 16th Recent updates clarified:
- June 16- CERB was extended for 8 more weeks.
- Prisoners and those recently released cannot claim the BC Emergency Benefit for Workers;
- Repayment info for the CERB and the BC Emergency Benefit for Workers;
- Information about presumptive WCB coverage for workers who get COVID-19 at work;
- and the application date May 15 for the Student Emergency Benefit was announced.
If you a worker and you are sick start here:
Workers Compensation
If you think you have been exposed to COVID-19 at work, tell your employer and go home*. Phone your doctor or 811 for health instructions (don’t go to the office or hospital) and file a Workers Compensation Claim with Worksafe BC by phone at 1 888 WORKERS (1 888 967-5377). If your claim is accepted WCB will pay wage loss replacement and health costs related to your illness or injury for a set period of time. You will not qualify if you are quarantined or ordered to self-isolate, but are not sick. Here is information about WCB wage loss benefits for COVID-19 illness arising out of and in the course of employment. Here is info about reporting to WCB.
*Different rules may apply to healthcare workers who are delivering essential services because there is a state of emergency declaration in place. Check with your employer and your union about what to do if you are exposed to COVID-19 if you are in this category.
In May WCB announced that COVID-19 would be added to Schedule 1 of the Workers Compensation Act. This is important because to qualify for WCB benefits you need to prove your illness or injury was work related. Some workers, like firefighters, do not need to prove this step because they have “presumptive coverage”. The announcement means that workers who get COVID-19 will not need to prove that their infection is work related– the Board will presume that it is. Adding the condition to the Schedule instead of listing the types of workers who qualify is the most generous way to make this change because more people could qualify. This is a big deal, but might not help workers any time soon- implementing the change could take six months. But if you got sick or were hurt at work, report to WCB.
STIPP (Short Term Injury and Illness Plan)/ sick leave
If you are an employee with a sick plan, and you are sick with COVID-19 or anything else, investigate the terms of your work’s sick leave plan. In union environments there is often paid sick leave with sickness benefits equivalent to your pay. Some of these plans cover workers who are not themselves sick, but are quarantined, self-isolating, caring for a sick dependent or protecting the health of an immune-compromised person in their household. Check your plan.
Medical Employment Insurance
If you don’t have a sick plan, don’t qualify, or have used up all your sick time, and you are still sick, in quarantine, injured, recovering from surgery, and are unable work because of COVID-19 or some other illness, you might qualify for Federal Employment Insurance Sickness Benefits. (medical EI). You could qualify for up to 15 weeks income replacement. The waiting period can be waived if you call 1-833-381-2725 (toll-free). Expect to wait many hours. The requirement for a medical note has been waived. The application is here. If you need to apply later because of quarantine your application can be backdated. On September 30, 2020, medical certificate requirements will be reinstated. Apply online here.
If you are a worker and you are not sick start here:
FEDERAL PROGRAMS for individuals
There are three federal programs (besides Medical EI): Employment Insurance (EI), Canada Emergency Response Benefit (CERB) at Canada Emergency Student Benefit (CESB). They are listed in order of the value of the maximum payment. They all have different eligibility requirements. You may only collect benefits under one program.
If you are an employee, (not a contractor or self-employed) and are not sick, but you have been temporary or permanently laid off because your employer’s business is closed or downsizing, you should apply for Federal Employment Insurance (EI). You will need a Record of Employment (ROE). Ask your employer to give you one.
To qualify you need to have been an employee insured by the plan, lost your job through no fault of your own, worked 700 hours in the last 52 weeks, and been without work or pay for 7 days in the last 52 weeks. You need to be available for work. The ordinary requirement that you be looking for work is suspended. The waiting period can be waived if you call 1-833-381-2725 (toll-free). Expect to wait many hours.
Any severance pay will be calculated as pay and will delay the start of your benefits. Employer salary top ups, health benefit continuance and pension plan payments will be considered income unless you have a special plan (a Supplementary Unemployment Plan; or a Workshare Plan) and will be deducted from your benefits. EI pays 55% or your insurable weekly wage rate to a maximum of $573 a week, for 14-45 weeks. By April 7, 3.7 million Canadians had made new applications for federal support since March 15. EI claims are being paid at the reduced rate (500/wk instead of 573/wk) with CERB payments for the first 4 months.
Apply for EI here or by telephone at 1-833-699-0299. Expect phone application to take many hours. Do not go to a Service Canada office- they are closed to the public. New EI applications are being paid through CERB (see below), and at the moment receive the CERB rate of $500/week rather than the EI maximum rate of $573.
Record of Employment
You can start and EI application without an ROE but you will eventually need your employer to send one to the government. If your employer won’t give you an ROE after you ask, fill out this form.
You will need to report any work or pay to EI every 2 weeks. You can report here or by phone: 1-800-206-7218, Monday to Friday from 8:30 am to 4:30 p.m. local time, and press “0” to speak to a representative. You will need your SIN# and access code (which should have come in the mail).
If you are already on EI or medical EI, you will continue to receive your benefits. If your EI benefits end before October 3, 2020, you can apply for other benefits (see CERB below) after your EI ends. If your EI application is pending you will be automatically considered for other federal benefits (see CERB below).
If you are having problems with the online form, cannot get through on the phone or have a special situation, you can fill out a Service Canada Service Request Form and an agent will call you within 2 days.
Canadian Emergency Relief Benefit (CERB)
If you don’t qualify for any of the benefits listed above, or if your benefits are ending, you should apply for the Canadian Emergency Relief Benefit (CERB). The CERB covers people who have temporarily stopped working, reduced their hours, lost their jobs, are sick or in quarantine, or need to care for a child or a family member, either because they are sick or because daycare and schools are closed. It is designed to fill the gaps around EI. You might qualify even if you are still employed, self-employed, a freelancer or contract worker, or on government benefits (income assistance, PWD). This plan replaces two federal benefits that were previously announced, the Emergency Care Benefit and the Emergency Support Benefit.
Trudeau promised to expand eligibility for seasonal workers, students, people who have run out of EI and people whose hours are reduced. Details were announced April 15 with Bill C-14 The COVID-19 Emergency Response Act, No. 2.
The substantive change is that first time applicants no longer need to be 14 days without work- they only need to see their income reduced to $1000 during that two week period. To continue on the program, applicants cannot have earned more than $1000 in the four week period on their new (renewal) claim. An updated government FAQ about CERB is here. The $1000 includes wages, tips, honoraria, royalties, and non-eligible dividends, but does not include pensions, students loans, or bursaries.
To qualify you need to be:
- at least 15;
- living in Canada;
- have earned at least $5000 in 2019 from any combination of employment, self-employment, employment insurance birth parent and parental benefits;
- have income below $1000 for 14 consecutive days in a 4-week period because of COVID-19; and income below $1000 for periods of renewal.
Payments should arrive by post 10 days after you apply, or within 3 days if you have direct deposit. The CERB will pay about $2000/month, every 4 weeks for 16 weeks to a maximum of $8000.
The application is open. You can apply in three ways- online through CRA or BC Service Card online account services here (you can also sign up if you don’t have these accounts yet) or by telephone at 1-800-959-2019 or 1-800-959-2041. Expect phone application to take many hours. Do not go to a Service Canada office- they are closed to the public.
To avoid crashing multiple government systems they are asking people born in January, February and March to apply on Mondays; April May June Tuesdays; July August September Wednesdays; October November December Thursdays; Friday through Sunday is for everyone. 996,000 people applied on April 6. The BC Service Card process requires visual authentication by an agent over video (I did mine on my phone), but this is an extra step.
If you are already receiving EI and sickness benefits, you will continue to receive your benefits and should not apply to the CERB until those benefits end. If you’ve already applied for EI and your application hasn’t been processed yet, you’ll automatically be applied for the CERB instead. If you are still unemployed after the 16-week period covered by the CERB you can then apply for EI or Medical EI if you qualify.
YOU MUST REAPPLY FOR CERB EVERY MONTH. If you have earnings you will report them when you reapply. Note the earning exemption for renewals is $1000 over a four week period, and not $1000 over 14 days for initial applications.
On June 16, 2020 the federal government announced CERB is being extended for 8 more weeks. From July 5th onwards, recipients must sign an attestation that they are looking for work. People should keep records of their job search.
Here is the federal press release about all federal funding.
Canada Emergency Student Benefit (CESB)
The Canada Emergency Student Benefit provides $1,250 per month for eligible students from May through August 2020, and $1,750 for students with dependants and those with permanent disabilities. This program is designed for students who do not qualify for CERB. This program will be operated by the CRA. More info has not been released and the application will open HERE on May 15. If you do not have one already you can make a CRA online account here. Post secondary students will apply separately from this year’s high school grads. See the section on Students below for other benefits.
Overpayments and Repayments
You may only collect benefits under one federal relief program. Do not apply for both EI and CERB, but don’t panic if you think you were paid twice, or if you were laid off and then recalled after you got CERB funds. A million people per day applied for federal benefits and applications are being processed by hardworking union members facing incredible need. This article says they will sort out any over-payment at tax time next year. If you know right away you were over-payed and you can afford to, set the extra money aside.
Here is information about repaying CERB benefits. You can pay online through MyCRA. You can also pay by cheque. You need to write “CERB Repayment” and you social insurance number in the memo line of the cheque. If you got a paper cheque instead of direct deposit, you can return the cheque. Write “CERB Repayment” and you social insurance number somewhere on the front of the cheque. Send repayments to:
Revenue Processing – Repayment of CERB
Sudbury Tax Centre
1050 Notre Dame Avenue
Sudbury ON P3A 0C3
You have until December 31, 2020 to make any repayments. After that the CRA will issue a T4A slip for the amount of your benefits. If will need more time to pay, contact CRA through MyAccount, MyServiceCanada Account, or 1-800-959-2019
PROVINCIAL PROGRAMS for individuals
The Province of BC has also made support available. Apply for federal benefits first ( Medical EI, Regular EI or the CERB or CESB) to show the province you qualify.
B.C. Emergency Benefit for Workers
For working people, the B.C. Emergency Benefit for Workers will pay a one-time, non-taxable benefit of $1000 for people who are unable to work. The application is open online and by phone 1-855-955-3545. A reported asked the Premier how people who don’t qualify for federal benefits could access this benefit. He said he is working with Ottawa.
To be eligible for the emergency benefit, you must:
- Have been a resident of British Columbia on March 15, 2020
- Meet the eligibility requirements for the Canada Emergency Response Benefit (CERB)
- Have been approved for the Canada Emergency Response Benefit, even if you haven’t received a federal benefit payment yet
- Be at least 15 years old on the date you apply
- Have filed, or agree to file, a 2019 B.C. income tax return
- Not be receiving provincial income assistance or disability assistance.
On May 4th additional criteria were publicized:
- Not be incarcerated in a provincial or federal correctional facility for a period of 90 days or longer that includes March 15, 2020.
Overpayments and Repayments
If you were not eligible for the BC Emergency Benefit for workers (because you did not qualify, got recalled to work, had to pay back your CERB, or got paid without applying), you will need to pay it back. Contact your bank or credit union with this information and ask them to return the payment:
- the deposit date
- the deposit amount ($1,000)
- the payor name “Prov of BC”
- the account number that the payment was deposited into
You can also repay an overpayment by cheque, along with the confirmation number you got by email,and the original bank account info for where the payment went, if your cheque is from a different account.
B.C. Emergency Benefit for Workers
Ministry of Finance
PO Box 9471 Stn Prov Govt
Victoria BC V8W 9N9
This info was also added to the application “If you’re eligible for the Canada Emergency Response Benefit and receive a CERB payment, then return to work, you may still be eligible for the B.C. Emergency Benefit for Workers if all other requirements are met, provided you are not required to repay the CERB benefit.”
A social insurance number is required to apply. Payment is ONLY by direct deposit. Applications can be made by phone after May 4 at 1-855-955-3545.
**Caution: like the CERB, this benefit will be paid without an initial screen on eligibility. This means it is likely that people who do not qualify will be paid this amount, and the government will seek to recover the amount from you later, when they have time to verify applications. If you receive an amount from the government you were not expecting and for which you may not qualify, contact the issuing office. Do not spend the money if you will need to repay it.
BC-Temporary Rental Supplement (BC-TRS) Program will be paid directly to landlords for up to three months. APPLY ONLINE HERE or by phone Lower mainland: 778-452-2836 Toll Free: 1-877-757-2577.
Eligible tenants must make less than $74,150 (no dependants) or $113,040 (with dependants); must be eligible for federal benefits; be paying more than 30% of gross current (reduced) monthly income towards rent. This Expert says folks on receiving the shelter allowance on Income Assistance won’t get it. People getting Shelter Aid for Elderly Renters (SAFER) or Rental Assistance Program (RAP) are not eligible. BC Housing has committed not to report illegal secondary suites.
Tenants will be asked to provide the following information:
- Proof of address, such as a driver’s license or utility bill
- Proof of monthly rent amount, such as a signed tenancy agreement, rent receipt, or notice of rent increase
- Their landlord’s details and contact information, including email address
- For every household member who is over the age of 19:
- Identification, such as a driver’s license or BC identification card
- Proof of 2019 income (2019 Notice of Assessment or T-Slips)
- Proof of 2020 income loss related to COVID 19, and current income (Employment Insurance, Canada Emergency Response Benefit, Record of Employment, letter from employer, etc.)
Once your application is reviewed, and email will go to your landlord asking them to:
- confirm details around tenancy, rental address and monthly rent amount.
- provide their mailing address and banking information to receive payment by direct deposit
The tenant and the landlord will both get a confirmation email. Tenants whose landlords won’t fill out the form should call BC Housing at 1-877-757-2577. The application requires that you agree to a repayment plan with your landlord for the remainder of your rent. There is no general rent amnesty.
The Provincial Announcement is here
Other Programs for individuals
GST Tax Credit recipients will get a one-time special payment of approx t$400 for individuals and close to $600 for couples, to be paid on May 12.
Income Tax filing and payment has been moved to June 1 and there is a payment amnesty for back taxes until August 31. N.B If you could qualify for the Child Tax Benefit and the GST rebate, and the BC Benefit for Workers, file you taxes on time.
Wage top up for essential services workers who make less than $2,500 a month, including those working in long-term care facilities for the elderly has been announced. This will be paid through the provinces. Details have not been released.
Homeowners can access mortgage help, payment deferrals, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements from Canada Mortgage and Housing Corporation (CMHC). Info is here;
The BC Climate Action Tax Credit is increased and will automatically be paid to qualifying families.
Healthcare Worker travelling for work between Vancouver, Victoria and Nanaimo, can contact Helijet for free flights.
People fleeing violence may benefit from $50 million to women’s shelters and sexual assault centres dial 211.
Check here to see if you qualify for any other provincial program.
If you can’t pay your bills start here:
Rent banks exist in some communities which lend money to help with rent. See if there is one near you.
BC Hydro operates three relief programs:
- Customers can defer bill payments or arrange for flexible payment plans with no penalty. call 1 800 BCHYDRO (1 800 224 9376)
- Covid-19 Customer Relief Fund. allows residential customers to apply for a a 3 month credit (grant) on their Hydro bill. Hydro’s website says you need “You need to be eligible for Employment Insurance, the Canada Emergency Response Benefit, or the B.C. Emergency Benefit for Workers”. They also say “You must be able to upload verification of eligibility, such as your approval for the B.C. Emergency Benefit for Workers, approval for Employment Insurance, or a supporting document for your Canada Emergency Response Benefit application such as a record of employment or a closure letter from your child’s daycare” There is a maximum of one COVID Relief Fund bill credit per household. APPLY HERE.
- BC Hydro Customer Crisis Fund grant program could cover bills up to $600. Flexible payment plans and payment deferrals are available. Call 1800 224 93765.Government asks if you can pay to do so, so the supports can stretch to help as many folks as possible.
Fortis BC is offering flexible payment options and waiving late payment fees for gas and electricity bills. And they won’t cut off anyone during the crisis.
ICBC– one monthly deferral is available. Change the date of upcoming payment online. Speak to your insurance broker to see if you need to be insured for work if you are locked down or working from home. Just make sure you still have sufficient coverage.
Translink will credit unused portions of monthly passes to future passes or stored value if you will not be travelling because you are locked down or working from home.
Mortgage payments can be deferred for 6 months at RBC, TD BMO, Scotiabank, CIBC, National bank and Vancity. Contact your branch.
Contact your bank or credit union branch to see if relief is available for loans, credit cards and lines of credit. Contact your dealership to see about car loan relief.
The province also:
- banned terminations from work absences due to COVID-19;
- added 3 days of sick leave for workers;
- banned evictions for non-payment of rent;
- prohibited landlord entry into units;
- gave landlords the ability to control common areas;
Parents
BC Child Tax Benefit has been increased. This should go automatically to families receiving this benefit.
The Canada Child Benefit (CCB) payment is increased by $300 per child. Expect this automatically in May. Info is at this link Canada child benefit or call 1-800-387-1193.
Essential Service Workers can be matched with licensed childcare here. Essential service roles are Health and Health Services, Social Services, Law Enforcement, First Responders and Emergency Response.
People fleeing violence may benefit from $50 million to women’s shelters and sexual assault centres dial 211.
Children and youth
Children and Youth may benefit from $7.5 million for the Kids Help Phone call 1-800-668-6868, text 686868 or chat online.
Children and youth in care who would have aged out of federal or provincial support will not be cut off during the pandemic.
People fleeing violence may benefit from $50 million to women’s shelters and sexual assault centres dial 211.
Students
In addition to the Canada Emergency Student Benefit (CESB), BC post-secondary students at public institutions can access non-repayable emergency assistance for living expenses, food, travel, portable computers and other supports for students who are not already able to study remotely. Contact your school’s financial aid office to apply. Each post-secondary institution will determine the specific amount.
student loan eligibility and student grant amounts are increased.
Canada Student Loan & Canada Apprentice loan repayments are deferred for six months. BC Student loan payments are deferred for six months and interest on provincial loans already been removed. Volunteer opportunities will be coordinated with a government website. The Canada Summer Jobs program will change. Funding for indigenous students will increase. graduate students and post-docs support through tri-council funding will be increase Press release.
Seniors
Seniors 65 and over can get check in calls, help with meal prep, groceries, medication delivery and other critical items Seniors over 65 can access this online at https://bc211.ca/ or by dialing 211.CPP and OAS applications have moved online to My Service Canada Account;
BC Housing is offering help with meal prep and groceries. Contact you housing operator or call 211 for help.
Minimum withdrawals from Registered Retirement Income Funds (RRIFs) are reduced by 25% for 2020. similar rules would apply to individuals receiving variable benefit payments under a defined contribution Registered Pension Plan.
People fleeing violence may benefit from $50 million to women’s shelters and sexual assault centres dial 211.
Welfare and PWD
Income assistance, disability assistance, the BC seniors supplement (OAS GIS) and comfort allowance recipients may qualify for EI or CERB. There is a temporary earning exemption for federal COVID support, so people can receive federal funding without a provincial claw back (see federal benefits above).
If you are not receiving EI or CERB, and you get Income Assistance, Disability Assistance, Comfort Allowance of BC Senior’s Supplement, you will automatically get a $300 crisis supplement grants on cheques issue day starting April 22 cheques, and on cheque issue day for May and June. The Minister gave examples of what people might receive now: A person on Disability would get the base rate of $1183.42+ $300. A single parent with 2 kids would get the base rate of $1609.08+$300. You will not get this supplement if you get EI or CERB. Use My Self Serve or call 1-866-866-0800 for help, rather than visiting a Ministry office.
People on income assistance and provincial disability do not qualify for the $1000 B.C. Emergency Benefit for Worker. They also do not qualify for the $300 provincial top up if they are also receiving EI or CERB. A reporter asked a question about people who were forced onto federal programs because of the rules of provincial programs. The Provincial Minister said they are working with Ottawa.
If you are receiving a housing allowance you do not qualify for the BC Emergency Rental Supplement.
Legislation which would give $600 to people who receive the disability tax credit is before the parliament. This article suggests people on CPPD (federal disability) would not get the payment.
This article has these details:
For seniors who are eligible for the DTC and for the OAS pension, and who are already getting the previously announced $300 special one-time seniors payment, the one-time disability benefit will amount to an extra $300. Meanwhile, low-income seniors who qualify for the DTC and the Guaranteed Income Supplement, and who will be benefiting from the special one-time seniors payment of $500, will receive an additional disability payment of $100.
For children under 18 who qualify for the DTC, the $600 special payment will be made to the parent or guardian considered as primarily responsible for their upbringing under the Canada Child Benefit. Should the child be under shared custody, each parent will get an equal $300 share of the payment.
In May, the federal government announced up to $500 for seniors. These payments will be released in July. For seniors who qualify for Old Age Security (OAS) a one-time, tax-free payment of $300 is available; and seniors eligible for the Guaranteed Income Supplement (GIS) will get an extra $200. Those eligible for both will receive $500.
Transit by bus is free. People on Disability who receive a bus pass or compass card will get $52 Transportation Supplement on their cheques starting in April and each month until fares are reinstated. Cards are still valid for Skytrain and Seabus. You won’t need to re-apply again later. However service was deeply cut on April 18.
People who use drugs and prescription medication
People who need help with prescription drug costs and dispensing fees should enroll in Fair Pharmacare here or by calling 604 683-7151; from the rest of B.C., call 1 800 663-7100. You can also register using a paper form.
If you use illicit (black market) drugs you might qualify for the provincial safe supply program. You must have:
- a history of substance use
- are at high risk of withdrawal or overdose, AND
- confirmed or suspected case of COVID-19
New prescriber guidelines were released and federal permission was given to the province to distribute drugs. Pharmacare covers the cost. Contact you doctor nurse practitioner, or a rapid access addiction clinic to sign up. Home delivery and virtual prescribing is available. Hydromorphone, alcohol, and cannabis are available. It is unclear what is in place for stimulant users. Info for people who use drugs here.
If you are an employer start here:
Federal Programs for Businesses
There are many federal programs designed to keep workers attached to jobs, when work slows down. Employers need to apply for these and the programs need to be approved by the federal government. Talk to your employer and your union if you have one, to see if your workplace might qualify.
The federal government recently announced a wage subsidy of up to 75% of salary on the first $58 000 or a worker’s salary, which could mean up to $845 per week for 3 months. The benefit pays a maximum of $1,375 per employee and $25,000 per employer. The Prime Minister is encouraging employers to top up the remaining 25% of salaries to keep workers attached to their jobs and supported. It applies to all businesses, charities and non-profits who have experienced at least a 15% reduction in revenue for March, and a Eligible employers, including saw a 15% drop in revenue in March and a $30 reduction in April and May. (A threshold of %30 for the entire period had been previously announced). Make sure your employer knows about this program. It could prevent your layoffs. The application is open now through MyBusinessAccount.
This calculator can help you determine the amount to claim. This is a complex program. Here is a guide for applicant businesses.
A separate program, the 10% Temporary Wage Supplement for employers allows eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency.
EI Work Sharing Program
The EI Work Sharing Program is mean to prevent layoffs. It allows workers to agree to reduce their hours by 10-60%, and receive some EI support a well. This usually means workers get more income than they would on regular EI because they get their full wage rate for the time they are at work. This program can run from between 6 and 76 weeks. All sectors can temporarily participate. Existing programs that expired can be renewed. The application process has been streamlined, and the form is one page. To be eligible businesses must be year-round concerns which have operated for at least one year, with at least two employees in the Work Share unit. It cannot be used for business downturn due to labour disputes, ordinary slowdown, or seasonal shortages of work. Eligible workers are year-round permanent full-time or part-time “core staff”. This excludes casuals, seasonal, student, coop, contract, temporary, and auxiliary (on-call) workers. Senior management and executive level marketing workers, outside sales reps and technical workers doing research and development are also exempt.
Here are the federal government’s resources and factsheets on Work Sharing:
- Overview sheet for employers
- Work-Sharing fact sheet for employers
- Applications for a Work-Sharing Agreement form (EMP5100)
- Attachment A: Work-Sharing Unit form (EMP5101)
- Overview sheet for employees
- Work-Sharing fact sheet for employees
Work Sharing plans must be pre -approved by government, and can now start 10 days after an application is submitted (this used to take 30 days). To apply for the Work-Sharing program, employers must submit the following forms to EDSC.WT.WS-TP.ESDC@servicecanada.gc.ca. They can call for help and information here: Toll-free: 1-800-367-5693 TTY : 1-855-881-9874
- Applications for a Work-Sharing Agreement form (EMP5100)
- Attachment A: Work-Sharing Unit form (EMP5101)
Unless a Work Sharing agreement is in place, any top up, benefit continuation, pension contributions, severance or retention amount will count as income and could result in a claw back of some portion of benefits.
Supplemental Unemployment Benefits (SUB)
Another program that shelters top ups, benefits and other income related to work from a claw back of EI benefits is the SUB. This program is traditionally used to allow employers to top up birth parent benefits. Like Work Sharing, SUB plans need to be registered with the federal government. It is meant to cover situations of temporary work stoppage, training, illness, injury or quarantine.
Payments from SUB plans that are registered with Service Canada are not considered as earnings and are not deducted from EI benefits (pursuant to subsection 37(1) of the EI Regulations). Proposals are registered at Service Canada in Bathurst, N.B. Staff can help craft a plan. Workers must apply for EI before being eligible to collect. Outside of the emergency plans need to identify a group of employees and the duration of the plan. Workers total income from the plan is topped at 95%. This is significantly higher than other forms of benefits.
Here are the federal government’s resources and factsheets on
- the Supplemental Unemployment Benefit Program
- plan Requirements
- a sample plan to help formalize your SUB Plan
- how to register your plan
- SUB plan registration form
To register, the employer must submit a copy of the SUB plan and
- Supplemental Unemployment Benefit (SUB) Plan Registration form;
- Any collective agreement;
- A copy of the insurance plan or missing information required to administer the plan;
- A copy of the Trust Agreement;
- Company policies related to the plan;
- Declarations of documents employees have to sign to:
Service Canada – Supplemental Unemployment Benefit (SUB) Program
120 Harbourview Boulevard
P.O. Box 11,000
Bathurst, New Brunswick
E2A 4T5
Telephone: 1 800 561-7923
Fax: (506) 548-7473
Until a plan is registered, any top up or other amounts or benefits paid will be treated as earnings and may be deducted from the employee’s EI benefits. Employers who are already participating in the program will receive a request to renew from Service Canada – SUB Program before the end date of their plan. Service Canada’s decision to register a SUB plan cannot be appealed. However, a review of the decision may be requested by the employer.
OTHER FEDERAL RELIEF FOR BUSINESSES
- Small and Medium-sized Enterprise Loan and Guarantee program enables up to $40 billion in lending, supported through Export Development Canada and Business Development Bank, for guaranteed loans when small businesses go to their financial institutions;
- a Business Credit Availability Program, for small and medium-sized businesses, through the Business Development Bank of Canada and Export Development Canada; and to agricultural businesses Farm Credit Canada;
- The Canada Emergency Business Account (CEBA) is available to Canadian-operated businesses with federal tax registration and paroll in 2019 between $20,000 (down from a previous $50,000) and $1 million can apply for loans of $40,000 to cover non-deferrable operating costs; interest free until December 21 2022. Applications are made online through the financial institution that holds the business operating account. Loans are backed by the government and up to %25 of the principle is forgivable. Contact your bank or credit union to apply.
- Canada Emergency Commercial Rent Assistance (CECRA) provides loans to commercial property owners willing to forgo rent from small businesses for April -June.
- GST payments are delayed until June and GST audits are suspended.
- Federal info on reopening
PROVINCIAL RELIEF FOR BUSINESS
BC Hydro business customers which have closed can waive their bill for 3 months (until June 30 2020). Apply here. Small businesses that have been forced to close will have April-June Hydro forgiven, and still qualify for flexible payment and deferral. For industrial businesses 50% of hydro bills are can be deferred for 3 months. The BC Utilities Commission approved a 1% decrease in rates for all customers.
The province also deferred taxes for business (PST, municipal ®ional, tobacco, motor fuel, carbon, employer health), until September, delayed a tax increase planned for April 1, cut the school tax in half for small business and light industry and reduced commercial property tax by 25%.
Still confused?
All of these programs can be overwhelming. I suggest you apply for federal income support first (EI, Medical EI, CERB CESB), then apply for the BC Emergency Benefit and then see what assistance is available for your bills- starting with rent or mortgage.
Thanks for being patient with the staff operating these programs- it is frustrating for them too and they are facing incredible demand as we all go through this together.
Please stay well.
Resources and links:
Federal
Provincial
https://news.gov.bc.ca/releases/2020PREM0013-000545
Other resources:
- People’s Law School resources on work, money & debt and consumer issues.
- Community Legal Assistance Society Human Rights Clinic tips for employers (punchline: COVID-19 is a disability and you cant discriminate against sick people)
- Community Legal Assistance Society FAQ about CERB.
- Courthouse Libraries has set up a wiki page aggregating coronavirus resources, featuring hotline numbers and changes to legal services.
- PovNetlists coronavirus resources impacting government benefits, health, housing, and money issues — and including notable breaks being given by certain businesses to consumers (like internet providers). They’ve also put together a primer on how to effectively work remotely.
- Great Lawyer Blogs on medical notes for absences, worker rights, and leave for federally regulated worker through Bill 13.
- https://www.unifor.org/en/faq-new-canada-emergency-response-benefit-cerb
- https://www.vice.com/en_ca/article/k7e54z/i-lost-my-job-should-i-apply-for-ei-or-the-coronavirus-emergency-relief-benefit
- https://www.theglobeandmail.com/politics/article-trudeau-says-new-merged-benefits-will-help-workers-affected-by-covid/
- https://www.canada.ca/en/department-finance/news/2020/03/introduces-canada-emergency-response-benefit-to-help-workers-and-businesses.html
- https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/ei-employers-supplemental-unemployment-benefit.html
For Legislation nerds, Federal Bill-13 An Act respecting certain measures in response to COVID-19 (COVID-19 Emergency Response Act) makes these benefits possible and amends:
- Income Tax Act and Income Tax Regulations
- Canada Emergency Response Benefit Act
- Public Health Events of National Concern Payments Act
- Canada Deposit Insurance Corporation Act
- Pay for emergency response
- Canada Deposit Insurance Corporation Act
- Canada Mortgage and Housing Corporation Act
- Export Development Act
- Federal-Provincial Fiscal Arrangements Act
- Financial Administration Act
- Food and Drugs Act
- Food drugs cosmetic or device
- Canada Labour Code
- National Housing Act
- Patent Act
- Canada Student Loans Act
- Farm Credit Canada Act
- Canada Student Financial Assistance Act
- Business Development Bank of Canada Act
- Apprentice Loans Act
- Employment Insurance Act
Progress of the bill and links to the full text appears here.
Bill C-14 The COVID-19 Emergency Response Act, No. 2 amends the Income Tax Act and the Financial Administration Act to broaden eligibility for CERB. The full text is here.
p.s.- this is all legal information and not legal advice. Seek independent advice about your situation. Your mileage may vary. I am not the architect of any of these programs and don’t know more than what I wrote here. Thank you for finding my typos <3