Considering COVID-19 CERB benefits when determining IRB entitlements
July 14, 2020
Authored by RSM Canada LLP
Kirby W. Houle, CPA, CA, shared this article
- Work stopped, work hours reduced or unable to work (for the illness or to care for someone with the illness) because of COVID-19
- The beneficiary did not quit their job voluntarily
- The beneficiary does not expect to earn over $1,000 during each four-week period (and for at least 14 days consecutively during the first four-week period applied for)
- The beneficiary earned minimum income of $5,000 in 2019 or the past 12 months from employment or self-employment or provincial maternity or paternity leave benefits
- Employment Insurance (EI) benefits are not received or applied for in the same period
- Payments made to ineligible beneficiaries will be repayable
- Whether, until provided for under the SABS, they should be considered at all
- How to examine comparisons with other benefits
- How insurers will treat this issue
- What decisions might come out of the Ontario Licence Appeal Tribunal (the LAT)
- Recipients are referred to as “beneficiaries.”
- Like social assistance, CERB payments are a fixed universal amount not based on historical earnings, notwithstanding the income-based qualifying criterion.
- The enabling legislation, also known as the COVID-19 Emergency Response Act, uses the term “income support payment.”
- This act precludes the CERB from assignment, charge, attachment, garnishment or retention by way of deduction, set off or compensation under any other Act of Parliament. Clearly, the intention is that the CERB financially assists individual workers.
- “7(3)(a) 70 per cent of any gross employment income received by the insured person as a result of being employed after the accident…”
- “7(3)(b) 70 per cent of any income from self-employment earned by the insured person after the accident…”
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This article was written by Ian Wollach, Andre Kleynhans and originally appeared on 2020-07-14 RSM Canada, and is available online at https://rsmcanada.com/what-we-do/services/consulting/financial-advisory/litigation-support/considering-covid-19-cerb-benefits-when-determining-irb-entitlem.html.
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