Canada: Repayment of employee benefits under emergency response benefit program (COVID-19)

Canada: Repayment of employee benefits

Employers that set up a “supplementary unemployment benefit” plan with Service Canada (the program operated by Employment and Social Development Canada) to provide additional amounts to employees temporarily laid off due to the coronavirus (COVID-19) pandemic need to notify employees that they will probably have to repay any amounts received under the Canada emergency response benefit measures.


Related content

Service Canada has clarified that supplementary unemployment benefit plan payments of more than $1,000* in a benefit period will disqualify an employee from collecting the Canada emergency response benefits (CERB). The payments would have been allowed under the employment insurance rules to “top up” employees’ employment insurance benefits. As a result, employers that have already made payments of more than $1,000 need to advise employees that they must repay CERB amounts that have been received for the same benefit period.

Read a May 2020 report prepared by the KPMG member firm in Canada

*$ = Canadian dollar

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal