Employment lawyer on paying back CERB

News has broken that Canadians who received letters stating they would have to pay back the CERB benefit will not have to repay the benefit as long as they were eligible. This update has given rise to many questions across the country. What will this mean for tax purposes? What are the next steps Canadians should take if they received a letter requesting repayment?

A Vancouver employment lawyer at Samfiru Tumarkin LLP joins Global News Radio’s Jill Bennett on 980 CKNW to answer these questions and more.

What They Discussed

What does this news mean for Canadians who received a letter saying they would have to pay back CERB?

The recent news regarding CERB specifically addresses Canadians who applied for CERB based on their gross income and not net income; if an individual applied for CERB based on their gross income they will not have to pay back the benefit as for many it was an honest mistake.

What should Canadians who received a letter stating they would have to pay back CERB do?

Canadians have been recommended to pay back the amount before December 2020 sot that the benefit would not count towards a taxable income. However, there does seem to be an indication that the government will be more forgiving in terms of repayments.

Have some Canadians refiled and adjusted what was considered net income?

Many Canadians were trying to do their best to reach the eligibility requirements and many received conflicting information regarding whether or not they could apply for the benefit.

Has the issue of CERB repayments mostly affected self-employed individuals?

The majority of Canadians who seem to have had conflicting information and been informed of repayments have largely been self-employed. This is partly due to the fact that income reporting and assessment might have been done themselves.

How will the CERB benefit affect filing for taxes?

If an individual received CERB, it should be filed as taxable income.