Applying for the Canada Emergency Response Benefit (CERB)

The Canada Emergency Response Benefit (CERB) was introduced as financial relief for Canadians who lost income due to COVID-19. This emergency aid provided $2,000 per month for up to four months (starting mid-March 2020). 

If you were affected by job loss, reduced work hours, or illness due to COVID-19, it was crucial to understand eligibility requirements and application procedures to secure this financial assistance. 

Who Was Eligible for the CERB? 

You could apply for CERB if you met all of the following criteria: 

✅ Resident of Canada – Must be living in Canada and subject to Canadian tax laws.
✅ 15 Years or Older – Applicants had to be at least 15 years of age.
✅ Minimum Income Requirement – You must have earned at least $5,000 in employment/self-employment income in the 12 months prior to applying (or in 2019). This included ineligible dividends from an incorporated business.
✅ Stopped Working for at Least 14 Consecutive Days – You had to completely stop working for at least two weeks due to COVID-19-related reasons.
✅ Without Income for Those 14 Days – You couldn’t earn income during that period from employment, self-employment, EI benefits, or paid leave. 

Work Exemption: Could You Work While on CERB? 

Initially, applicants couldn’t earn income while receiving CERB. However, the government adjusted the rules to allow individuals to work up to 10 hours per week and still qualify. 

Examples of Who Qualified for CERB 

Example 1: John, a Sole Proprietor 

John was a self-employed real estate agent. Due to COVID-19, he stopped working on March 15 and had no commission income after that. However, he earned $10,000 in commissions in February before the pandemic hit. 

✅ John qualifies for CERB because he:
✔ Stopped working for at least 14 days
✔ Earned more than $5,000 in the past 12 months 

Example 2: Kumar, an Incorporated IT Consultant 

Kumar was an incorporated IT professional. He lost all his client contracts due to COVID-19 and had been without income since March 15. Earlier in 2020, he received $8,000 in ineligible dividends from his corporation. 

✅ Kumar qualifies for CERB because he:
✔ Stopped working for at least 14 days
✔ Earned more than $5,000 in the past 12 months 

How to Apply for CERB 

Applying for the Canada Emergency Response Benefit was quick and easy, taking only a few minutes online. 

🔹 Step 1: Visit the CRA Application Portal
Apply through CRA My Account at this official CERB page. 

🔹 Step 2: Ensure CRA My Account is Set Up
If you didn’t already have a CRA My Account, you had to register first:
Set up CRA My Account. 

🔹 Step 3: Update Your Direct Deposit
To receive faster payments, applicants were encouraged to update their banking details with CRA. 

🔹 Step 4: Submit the Application
Eligible individuals had to confirm they met the requirements every 4 weeks to continue receiving payments. 

Final Thoughts 

The Canada Emergency Response Benefit provided much-needed financial support during the pandemic, but understanding eligibility, tax implications, and reporting requirements was crucial. 

If you’re unsure about government benefit claims, tax reporting, or business support options, working with an experienced tax professional can help you stay compliant and maximize financial aid opportunities. 

📢 Need Expert Guidance on Government Benefits and Tax Strategies? Contact GYTD CPA Professional Corporation today to ensure you’re getting the maximum financial support while staying fully compliant!