The Government of Canada has announced a $37 billion income support plan to replace the Canada Emergency Response Benefit (CERB), which includes:
- Extension of CERB for an additional four weeks, until September 26. After this date, most CERB recipients will transition to the Employment Insurance program.
- Temporary (one year) changes to the EI program to that will help more employees to qualify. Hoteliers will not have additional costs associated with these changes, as EI premiums will be frozen for two years.
- New benefit programs to support those who do not qualify for EI. Additional details will be available by mid-September, and online applications will open in October for:
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- Canada Recovery Benefit (CRB): $400 per week for up to 26 weeks for self-employed or sole proprietor hoteliers who stopped working or had their income reduced as a result of COVID-19. Hoteliers on CRB can earn income from self-employment while receiving the benefit, as long as they continue to meet the other requirements.
Hoteliers on CRB who earn more than $38,000 annually (net) will need to repay $0.50 of every dollar earned above that $38,000 through their income tax return, up to the total of the CRB they received in a calendar year. - Canada Recovery Sickness Benefit (CRSB): $500 per week for up to two weeks for hotel employees who do not have access to paid sick leave, if they are sick or must self-isolate for reasons related to COVID-19.Employees cannot receive this new sickness benefit and other paid sick leave at the same time.
- Canada Recovery Caregiving Benefit (CRCB): $500 per week for up to 26 weeks per household for hotel employees who are unable to work because they need to take care of a dependant while schools, daycares, or day program facilities are closed because of COVID-19.This may affect hoteliers if employees live in an area where school or childcare services are closed because of COVID-19, which may lead to employees not returning to work. Hotel employees who choose to keep dependants at home when facilities are open are not entitled to this benefit.
- Canada Recovery Benefit (CRB): $400 per week for up to 26 weeks for self-employed or sole proprietor hoteliers who stopped working or had their income reduced as a result of COVID-19. Hoteliers on CRB can earn income from self-employment while receiving the benefit, as long as they continue to meet the other requirements.
In order to implement these changes, legislation will need to be passed when Parliament resumes on September 23. We will keep you apprised as more details are released.