The federal government has announced that applications for the 75 per cent wage subsidy for qualifying businesses will open on April 27th.
How to apply for CEWS?
Option 1:
Let us help you.
We are able to apply on your behalf through the “Represent a Client” service
What we require:
- Revenue in March 2019 and January, February and March 2020 under two options:
- Cash method (i.e bank statements); or
- Accrual method (i.e billing reports)
- Payroll reports from January 1, 2020 to April 11, 2020 along with confirmation of any 7 day or more periods where an employee is not working.
Option 2:
- Register now for CRA’s My Business Account if you are not already signed up.
- Before you apply, you can calculate your estimated subsidy on CRA’s website
- Apply beginning April 27th through My Business Account
What is the Canada Emergency Wage Subsidy (CEWS)?
The CEWS provides a wage subsidy of 75% (that’s up to $847 per employee per week), to eligible employers, for up to 12 weeks, retroactive to March 15, 2020.
Are you eligible for the Canada Emergency Wage Subsidy?
Many types of Canadian employers are eligible, including individuals and professional corporations.
1. What is your eligible revenue reduction?
Determine if your revenue reduction makes you eligible for the CEWS in a particular period:
- For March 15-April 11 – 15% drop in revenue
- For April 12-May 9 – 30% drop in revenue
- For May 10-June 6 – 30% drop in revenue
To calculate your reduction, compare your eligible revenue for the starting month of the claim period with your baseline revenue. Your baseline revenue is the amount you earned in the corresponding month in 2019 OR the average of January and February 2020.
2. Who are eligible employees?
An eligible employee is an individual who:
- Is employed by you in Canada, and
- Has received eligible remuneration for 14 or more consecutive days in the eligibility period.
3. What is eligible remuneration?
Eligible remuneration includes amounts you paid an employee as salary, wages and other taxable benefits, fees, and commissions.
How is CEWS Calculated?
1. Select your claim period
- March 15 to April 11, 2020
- April 12 to May 9, 2020
- May 10 to June 6, 2020
2. Determine your gross payroll for eligible employees
The CEWS provides a wage subsidy of 75% (that’s up to $847 per employee per week). The amount that you can claim for eligible employees depends on whether they:
- Earned $1,129.33 or more per week
- Earned $1,129.32 or less per week and have NOT had their pay reduced since the crisis
- Earned $1,129.32 or less per week and HAVE had their pay reduced since the crisis
- Are arm’s length or non-arm’s length.
3. Claim a refund for certain premiums and contributions
You can claim a 100% refund for the employer-paid part of contributions made on behalf of eligible furloughed employees (on leave with partial or full pay) for any full week in the claim period. This includes:
- Employment Insurance (EI)
- the Canada Pension Plan (CPP)
4. Enter deductions
The amount you can claim for the CEWS will be reduced by:
- Amount that you are eligible to claim under the 10% Temporary Wage Subsidy for Employers (for the claim period)
- Total amount that your eligible employees have received under ESDC’s Work Sharing Benefit program
