Canada Emergency Wage Subsidy (CEWS)

Canada Emergency (75%) Wage Subsidy (CEWS)

April 23, 2020 The application window will open on Monday, April 27 at 6:00 am.  You can apply using your CRA My Business Account or, alternatively, you can apply using a separate online application form that will be available.  You will need to obtain an online Web access code if you use the application form.  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.    There is no need to rush, however.  Applications will not be processed on a first-come, first-served basis. Instead, all applications received from April 27 to May 3 will be batch-processed at the same time on May 4. 
 

The CRA has built in certain automated verification controls to guard against fraud and abuse.  Businesses that have had their application approved during the May 4 automatic verification process can expect to receive payment via direct deposit on May 6 or May 7.  The CRA estimates that some 10% of businesses that apply for the CEWS will not make it through the automated verification process but will require manual verification.  If you require manual verification, then your direct deposit will be delayed.
 

Before applying, you should have already calculated the estimated subsidy. The federal government has created an online calculator to help businesses determine what the CEWS will cover and to simplify the application process.   Businesses that go through the process of using the calculator will be able to print out the resulting information and use the printout to help expedite the online application process.  The calculator is on the CRA’s CEWS information page, at the section entitled “Calculate Your Subsidy Amount”.
 

The CRA’s CEWS information page also provides additional information for applicants about which employers are eligible and how they should count eligible employees.
 

The CRA has re-assigned 3,000 auditors to handle manual verification and 2,000 call centre employees to handle CEWS inquiries from businesses.
 

CRA officials reiterated that the objective of the CEWS program is to have businesses recall workers they may have already laid off and avoid additional lay offs.  At the same time, the CRA is warning employees who get hired back that they will be asked to re-pay any CERB funds they have received if the period for which they receive a CERB support overlaps with the period for which they are receiving a CEWS-subsidized paycheque from their employer.
 

Remember that any wage subsidies paid to a business will be treated as business revenue for tax purposes.
 


April 21, 2020   To help employers keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic, the Government is implementing the Canada Emergency Wage Subsidy (CEWS).  This important economic measure provides a 75% wage subsidy of up to $847 per employee per week, to eligible employers, for up to 12 weeks, preventing further job losses and encouraging employers to re-hire workers previously laid off as a result of COVID-19, retroactive to March 15, 2020.

The CEWS calculator can be found on CRA’s Canada Emergency Wage Subsidy Web page. This Web page incorporates feedback received during user testing with stakeholders, including the Canadian Federation of Independent Business and the Chartered Professional Accountants of Canada.  It includes detailed information and instructions about who can apply for the subsidy, how eligibility is assessed, and how the subsidy is calculated.  The calculator also includes a printable statement feature that employers can use to view their claim at a glance and, as of April 27, enter required information into the CEWS application form quickly and easily. 
 


April 8, 2020 The Prime Minister announced additional measures available to Canadian Businesses, Charities and Non Profit organizations today that will provide more available cash for businesses, more incentives to rehire workers and a reduction in the March 2020 revenue decrease percentage to reflect a more realistic view of the impacts of COVID-19 in that month.
 



 


 



 




Backgrounder: Information on these measures are available at this link


These responses are based on a public call with Minister Navdeep Bains regarding the 75% Canada Emergency Wage Subsidy (CEWS). This call was hosted by the Council of Canadian Innovators (CCI), a national business council that advocates on behalf of Canada’s fastest-growing technology-intensive firms.
 

  1. Is there any cap to the Canada Emergency Wage Subsidy? 
    The Canada Emergency Wage Subsidy would apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.
     

  1. What employees are eligible?
    Payroll employees including full and part-time as well as those on Parental leave.
     

  1. How is the government identifying the 30% decrease in revenues?
    Employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, would be able to access the subsidy.
     

  1. Is this program for a particular sector or company size? Does it support only Canadian Controlled Private Corporations?
    Eligible employers would include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
     

  1. How do business access the Canada Emergency Wage Subsidy?
    Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details regarding how to apply for the program will follow.
     

  1. What if our company doesn’t qualify for the Canada Emergency Wage Subsidy?Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
     

Backgrounder: The Canada Emergency Wage Subsidy https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html