Canada Emergency Wage Subsidy (CEWS)

As a Canadian employer whose business has been affected by COVID-19, you may be eligible for a subsidy of 75% of employee wages for up to 12 weeks, retroactive from March 15, 2020, to June 6, 2020.

This wage subsidy will enable you to re-hire workers previously laid off as a result of COVID-19, help prevent further job losses, and better position you to resume normal operations following the crisis.

Who is an eligible employer?

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

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.

Determine your eligible employees

An eligible employee is an individual employed in Canada by you (the eligible employer) during the claim period, except if there was a period of 14 or more consecutive days in that period where they did not receive any pay (eligible remuneration) by you.

Employee eligibility is based on whether the person is employed in Canada, not where they live.

Retroactively hiring and paying employees

Employees who have been laid off or furloughed can become eligible retroactively, as long as you rehire them and their retroactive pay and status meet the eligibility criteria for the claim period. You must rehire and pay such employees before you include them in your calculation for the subsidy.

Eligible remuneration includes amounts you paid an employee as salary, wages and other taxable benefits, fees, and commissions. These are amounts employers would be required to make payroll deductions on to be remitted to the CRA.

Severance pay and items such as stock option benefits or the personal use of a corporate vehicle are not part of eligible remuneration.

Baseline remuneration

When calculating the wage subsidy, you will need to determine an employee’s baseline remuneration. Baseline remuneration is considered to be the average weekly eligible remuneration paid to an employee during the period of January 1, 2020, to March 15, 2020. However, you may exclude from your calculation any period of seven or more consecutive days for which the employee was not paid.

Calculate your amount

When you apply for the Canada Employment Wage Subsidy (CEWS), you will be asked to enter amounts such as the number of eligible employees and gross payroll. To get ready, you can determine these amounts and preview your subsidy claim now, based on information you enter. The calculator is a tool to help you estimate the amount of your wage subsidy.

Before you calculate your subsidy, make sure you are eligible to apply.

After you apply for the wage subsidy, your claim will be subject to verification.

The Government of Canada has an interactive calculator on their website to allow you to amount. Use it now.

How to apply

Beginning April 27, applications will be open for the Canada Emergency Wage Subsidy.

  • Most businesses may apply using My Business Account
  • If you represent a business, you may apply using Represent a Client
  • Alternatively, you may apply using a separate online application form (available April 27)
 

The CEWS will be processed at the payroll program (RP) account level, so you will have to file a separate application for each RP account.

For a full list of steps on how to apply visit the Government of Canada website.

Update regarding COVID-19

Update regarding COVID-19

We would like to inform you that our office has reopened. However, in order to ensure the health and safety of our clients and employees, we greatly encourage that visits are by appointment only.

If you wish to drop-off information, we have a dropbox available to receive documents in a contactless manner.

If you wish to set up or change an existing meeting, or have any other inquiries, please do not hesitate to call or email our office.

We ask that you refrain from visiting our office if you have been exposed to the Coronavirus (COVID-19), have travelled by plane or outside the country within the last two weeks, or do not feel well. If you are feeling unwell, we hope you feel better soon.

If you have any questions, we are here to help. Please call or email us for assistance.

We would like for you to know that, during these difficult times, we will continue to strive to provide you with the highest level of service possible.

We thank you for your co-operation and understanding in this matter.

Secured By miniOrange