Determine your eligibility for the Canada Emergency Wage Subsidy (CEWS)
To be eligible to receive the wage subsidy, you must:
- be an eligible employer
- have experienced an eligible reduction in revenue, and
- have had a CRA payroll account on March 15, 2020
Eligible employers include:
- individuals (including trusts)
- taxable corporations
- persons that are exempt from corporate tax (Part I of the Income Tax Act), other than public institutions:
- non-profit organizations
- agricultural organizations
- boards of trade
- chambers of commerce
- non-profit corporations for scientific research and experimental development
- labour organizations or societies
- benevolent or fraternal benefit societies or orders
- registered charities
- partnerships consisting of eligible employers
Public institutions are not eligible for the subsidy. This includes municipalities and local governments, Crown corporations, public universities, colleges, schools and hospitals.
What is an eligible revenue reduction?
You must determine if your reduced revenue makes you eligible to apply for the wage subsidy in a particular period.
If you determine that you qualify for the CEWS for one claim period, you will automatically qualify for the following claim period.
Calculate your reduction by comparing your eligible revenue for the starting month of the claim period with your baseline revenue. Your baseline revenue is either:
- the revenue you earned in the corresponding month in 2019, or
- the average of the revenue you earned in January and February, 2020
To view the important application dates please visit the government of Canada’s website.
Eligible revenue generally includes revenue earned in Canada from:
- selling goods
- rendering services, and
- others’ use of your resources
Use your normal accounting method when calculating revenue. You can use the cash method or the accrual method, but you must use the same approach throughout.
There are a number of special circumstances, please visit the Government of Canada’s website for more information.