Starting April 27, 2020, eligible employers can apply for the 75% Canada Emergency Wage Subsidy (CEWS) via CRA My Business Account or through a separate online application form. We are also able to apply on your behalf, using Represent a Client access. If you wish for us to apply on your behalf, please note our standard rates would apply.
For more information on CEWS please visit: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
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 Reduction in Revenues on Goods and Services
If the corporation’s March 2020 revenue has been reduced by 15% over:
- March 2019 or
- The Average of January and February 2020
Then the corporation would be eligible for the CEWS for payroll paid during the claiming period March 15 to April 11, 2020.
If the corporation’s April 2020 revenue has been reduced by 30% over:
- April 2019 or
- The Average of January and February 2020
Then the corporation would be eligible for the CEWS for payroll paid during the claiming period April 12 to May 9, 2020.
If the corporation’s May 2020 revenue has been reduced by 30% over:
- May 2019 or
- The Average of January and February 2020
Then the corporation would be eligible for the CEWS for payroll paid during the claiming period May 10 to June 6, 2020.
Employers would select the general year-over-year approach or this alternative approach using the average of January and February 2020 when first applying for the CEWS and would be required to use the same approach for the entire duration of the program.
Employers would be allowed to calculate their revenues under the accrual method or the cash method, but not a combination of both. Employers would select an accounting method when first applying for the CEWS and would be required to use that method for the entire duration of the program.
If you determine that you qualify for the CEWS for one claim period, you will automatically qualify for the following claim period.
Please let us know if you need our help in determining your revenue for the above calculations.
Amount of Subsidy
The subsidy amount for a given employee on eligible remuneration paid for the period between March 15 and June 6, 2020 would be the greater of:
- 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week; and
- the amount of remuneration paid, up to a maximum benefit of $847 per week or 75% of the employee's pre-crisis weekly remuneration, whichever is less.
Employers will also be eligible for a subsidy of up to 75% of salaries and wages paid to new arm’s-length employees.
We hope you and your loved ones are keeping safe and healthy during these challenging times.