CERB Repayment Deadline Approaches – Tips to Avoid Penalties

As the deadline for repaying the Canada Emergency Response Benefit (CERB) looms, many Canadians are facing uncertainty about how to settle their debts without incurring penalties. The CERB, introduced in 2020 to provide financial relief during the COVID-19 pandemic, helped millions of Canadians stay afloat. However, some recipients have been asked to repay funds due to eligibility issues or overpayments.

With repayment deadlines having passed for some recipients and still looming for others, understanding the process and potential consequences is crucial. Here’s what you need to know and how to avoid financial penalties.

CERB Repayment Deadlines

The repayment deadline depends on how the CERB funds were received:

• For CERB payments received through Service Canada – The deadline to repay without incurring penalties or interest was December 31, 2022.
• For CERB payments received through the Canada Revenue Agency (CRA) – The deadline to repay without penalty or interest was December 31, 2023.

If you have outstanding amounts beyond these deadlines, you may now face collection actions from the CRA.

What Happens If You Don’t Repay on Time?

Failing to repay CERB can have serious financial consequences, including:

• Interest and Penalties – Unpaid amounts may begin to accrue interest, increasing the total amount owed.
• Tax Refund Offsets – The CRA may withhold future tax refunds or benefits, such as the GST/HST credit or Canada Child Benefit, to recover the debt.
• Collection Actions – In extreme cases, the CRA can take aggressive measures, including garnishing wages or seizing assets to recover outstanding amounts.

To avoid these consequences, it’s essential to act promptly and explore repayment options.

How to Repay CERB?

There are multiple ways to repay CERB, depending on how you originally received the payments.

1. Online Through CRA’s ‘My Account’

The easiest way to repay is through the CRA’s secure portal:

• Log into CRA My Account.
• Navigate to the CERB repayment section.
• Choose your preferred payment method, such as online banking, credit card, or Interac e-Transfer.

2. Online Banking

You can also repay through your financial institution by adding the CRA as a payee and selecting “CRA (revenue) – Canada Emergency Response Benefit repayment”.

3. Mail a Cheque or Money Order

If you prefer to pay by mail, send a cheque or money order payable to “Receiver General for Canada”, ensuring that you include:

• Your Social Insurance Number (SIN)
• The note “CERB repayment” on the memo line

Mail your payment to: Canada Revenue Agency Revenue Processing – Repayment of CERB Sudbury Tax Centre, 1050 Notre Dame Avenue, Sudbury ON P3A 5C2

4. Repay Through Service Canada (If Applicable)

If you received CERB through Service Canada (EI stream), you must repay directly through Service Canada by visiting their website or calling 1-800-206-7218.

What If You Can’t Afford to Repay?

If you are struggling to repay, don’t ignore the issue. The CRA offers options to help:

1. Payment Arrangements

If you can’t afford to repay the full amount immediately, the CRA may allow you to set up a payment plan with affordable monthly installments. You can request a payment arrangement through:

• The CRA’s My Account portal
• Calling the CRA at 1-888-863-8657

2. Financial Hardship Considerations

In some cases, if repaying CERB would cause significant financial hardship, the CRA may reduce or defer payments. Contact the CRA directly to discuss options.

Staying Compliant and Avoiding Future Issues

• Keep Records – If you believe you were eligible for CERB but were asked to repay, keep all records of employment, bank statements, and any relevant documentation that proves your eligibility.
• Check Your CRA Account Regularly – Keep track of any notices from the CRA regarding CERB repayments or outstanding balances.
• Seek Professional Advice – If you are uncertain about your repayment obligations, consult a tax professional or financial advisor.

Final Thoughts

The CERB repayment deadline is a serious matter, and failing to act could lead to financial difficulties. If you still owe money, take proactive steps to resolve your balance and avoid penalties. Whether repaying in full or setting up a payment arrangement, timely action will help you stay compliant with CRA regulations.

For more information, visit the official CRA website or contact their support services.

By understanding your obligations and taking the necessary steps, you can navigate the CERB repayment process smoothly and avoid unnecessary penalties.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.