All You Need to Know About Canada Emergency Wage Subsidy (CEWS)

If you are an employer in Canada, and you have seen a reduction in revenue due to the ongoing COVID-19 pandemic, you might be eligible for a subsidy that will help you cover some of the employee wages. It might also let you re-hire your former employees, help prevent more job losses and assist you in moving your business back towards normalcy. You can get all these benefits if you know about the Canada Emergency Wage Subsidy or CEWS.

A proposal has been initiated that will help ensure that the CEWS continues till October this year. It might include some changes to the rates of claim period 20. You can read the July 30 announcement here.


Important Dates

If you want to benefit from the CEWS, you should know that the first day you are allowed to apply for claim period 19 from September 1, 2021. The deadline for applying for claim period 13 is September 9, 2021.

Eligibility for CEWS

If you want to know about your eligibility for CEWS, read on. You must be able to meet all three criteria that are mentioned below.

1.       1.You Must Have a CRA Payroll Account on March 15, 2020

You can get a subsidy if you didn’t have a payroll account, but another person/partnership made remittances on your behalf, or you purchased most (or all) of another person’s or partnership’s business assets.

2.       2.You Must be a Qualified Employer

To qualify for the subsidy, you must be one among these types of employers:

Ø  Corporations or trusts that are not exempt from income tax (Part I of the Income Tax Act)

Ø  An individual (sole proprietor)

Ø  You must be among entities that are exempt from income tax (Part I of the Income Tax Act)

 3.       You Must Have Seen a Drop in Revenue

You can calculate the drop in revenue by comparing the eligible revenue during the specific period with the eligible revenue for the same period during the last year.

For claim periods 18 to 20, which cover the timeframe from July 4 to August 28, you must have seen a more than 10 percent revenue drop. For claim periods 5 to 17, which cover the timeframe from July 5, 2020, to July 3, 2021, you don’t need to worry about a percent of revenue drop. The process of calculating the revenue drop for claim periods 1 to 4 is different. You can calculate it by comparing the eligible revenue for the claim period month with the eligible revenue from the previous matching period. To know about who can apply, click here.

In case you want to calculate the revenue online or via a spreadsheet, here’s a handy link that might help you get your numbers in order.


How to Apply?

To apply for a subsidy, make sure that the claim period you are applying for is open and ensure that you have calculated the CRHP and CEWS amounts for your business. Also, ensure that your direct deposit information is up to date with the CRA. To apply for CEWS, click here.

If you want to contact the CRA about CEWS, you can do that by clicking here.



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