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This publication provides statistics based on information that the Canada Revenue Agency (CRA) collected and processed for all recipients of the Canada workers benefit (CWB) for the 2021 tax year. The CWB replaces and strengthens the working income tax benefit (WITB). It is an enhanced and more accessible refundable tax credit.
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Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced that the Canada Workers Benefit will now be available to about one million more Canadians and help lift nearly 100,000 people out of poverty.
June 30, 2021 - Ottawa, Ontario - Department of Finance Canada
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Mona Fortier, Minister of Middle Class Prosperity and Associate Minister of Finance, announced that the Canada Workers Benefit will now be available to about one million more Canadians and help lift nearly 100,000 people out of poverty.
The Canada Workers Benefit is a refundable tax credit to help people and families who are working and earning a low income. It is a sizeable tax refund for workers. Until now, the threshold of eligibility left many low-wage workers out of the program and that meant people were still living below the poverty line despite working full-time jobs. With the passage of changes contained in the budget, a million more low-income workers are now eligible for a tax refund of up to almost:
•$1,400 for workers who are single and without children (a group that does not receive many benefits); and
•$2,400 for workers with families.
“The pandemic has underscored that low-wage workers in Canada work harder than anyone else in this country, for less pay. In the past year, many faced layoffs, significant infection risks in the workplace, or both. I am sure all Canadians would agree that no one working full-time in our country should live in poverty. By enhancing the Canada Workers Benefit, we will lift nearly 100,000 people out of poverty, help one million hard-working Canadians make ends meet for themselves and their families, and build a fairer, more inclusive economic recovery in Canada.”
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“We know low-wage workers are among the hardest hit by the pandemic, and every Canadian deserves to be fairly compensated for their work, that is why we are expanding the Canada Workers Benefit. By enhancing this benefit, one million more Canadians will be included and this will help lift nearly 100,000 people out of poverty. We will continue to bring forward targeted support to build a workforce that is more resilient and strong so that no one is left behind.”
•This enhancement will also increase the income threshold for workers to receive the maximum benefit to $22,944 for single Canadians without families, and $26,177 for families.
Enhancing the Canada Workers Benefit is part of a suite of measures included in the recent federal budget that will support workers, including:
•A new federal minimum wage of $15 per hour, rising with inflation.
•The extension of the Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy, and Lockdown Support until September, 25, 2021, so the government can continue to protect millions of jobs and provide workers and employers with certainty and stability over the coming months.
•The new Canada Recovery Hiring Program, which will provide an alternative subsidy for businesses affected by the pandemic to help them hire more workers or increase the hours and wages of employees.
•The new Sectoral Workforce Solutions Program to help connect up to 90,000 Canadians with the training they need to access good jobs in sectors where employers are looking for skilled workers.
Katherine Cuplinskas
Press Secretary
Deputy Prime Minister's Office
Katherine.Cuplinskas@dpmo-cvpm.gc.ca
Isabella Brisson
Press Secretary
- Department of Finance Canada
The additional tax credit amounts are not reflected above. (4) The PEI 2020 budget increases the basic personal amount to $10,500 for 2021, with the spouse and equivalent-to-spouse amounts increased proportionately. (5) n/a means there is no cap on the amount of medical expenses for other eligible dependants.
Dec 1, 2021 · The maximum credit will be phased-out by 15% of adjusted family net income over $22,944* for single individuals without dependants and $26,177* for families. For 2021 and later tax years, the budget also proposes to enhance the CWB disability supplement. The budget proposes that the maximum amount will be $720* in 2021.
Jan 25, 2021 · For our clients on the West Coast, Payworks collects BC EHT in installments and remits these funds to BC Finance. While collection had been deferred in light of the pandemic, it has now resumed in the following installment schedule: Due December 31, 2020: Collected on first payroll after November 1, 2020. Due January 31, 2021: Collected on ...
Jan 10, 2023 · However, if you accidentally forget to populate Box 12 – for an employee’s Social Insurance Number (SIN) – your business could be subject to a Canada Revenue Agency (CRA) penalty of $100 per missing SIN. Payworks pro tip: If an employee receives a permanent SIN later in the year, ensure that updated information is reflected in Box 12.
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Canada Workers Benefit (CWB) - 2019 & later years. The Canada Workers Benefit (CWB) is also a federal refundable tax credit, available for 2019 and subsequent years, for low-income individuals or families with working income over $3,000 (most provinces/territories). The CWB calculations differ for Alberta, Quebec and Nunavut.
