April 15 – CERB Tax Implications
To all staff:
Please note the information below as it pertains to the CERB payments. I wanted to bring this to your attention as the payments are considered to be a taxable benefit, yet no tax is being deducted from the payment. This may create a tax implication for you when you complete your 2020 tax return in 2021.
How much money will I get?
A flat rate of $2,000 a month for up to four months. The benefit is taxable but no tax will be taken directly from the cheque, instead it will be payable next year when you file your tax return.
Is CERB taxable?
Yes the benefit is taxable, but you will receive the $2000 upfront. When the time comes for you to prepare your income tax return for the year 2020 you will need to claim it as income.