The Directorate found that the source deduction requirements (including graduated rates) under Reg. 102(1) applied to Canada emergency response benefit (CERB) and Canada emergency student benefit (CESB) payments. In this regard, it noted that the payments are governmental financial assistance under s. 56(1)(r), so that they are deemed “remuneration,” and the payer and payees are deemed to be “employer” and “employee,” under the Reg. 100(1) definitions. The Directorate went on to state:
Since the payment recipients would not be reporting for work, in our view, subsection 100(4) provides an appropriate deeming provision in that regard. Where the employee is not required to report for work at any of the employer's establishments, subsection 100(4) of the Regulations contains a number of relevant deeming provisions. For the remunerations other than salary, wages, or commissions, paragraph 100(4)(b) provides that the employee shall be deemed to report for work at the employer's establishment in the province where he or she resides. Paragraph 100(4)(b) further provides that if the employer does not have an establishment in that province, the employer shall be deemed to have an establishment there.