Canada Emergency Wage Subsidy (CEWS)

Many of our clients have inquired about the 75% wage subsidy that has been introduced by the Ministry of Finance to help employers keep and return workers to their payroll. 

Please refer to the complete details here at Canada Revenue Agency official website: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html. 

We highly recommend you to check this page regularly for future update.

WHO IS ELIGIBLE TO APPLY FOR CEWS?

• Employers that see a drop of at least 15% of their gross revenue in March 2020, or a drop of at least 30% revenue in April or May 2020
  • As compared to
  1. the same month of last year
     • Example: March 2020 gross revenue drop more than 15% as compared to March 2019
  2. Average monthly revenue of January and February 2020
  • Employers must use the same methodogy for all three claiming periods
• Employers can be individuals, corporations, partnerships or Non-for-Profit Organizations
• Employers who are not eligible for the 75% wage subsidy may qualify for the 10% wage subsidy that was proposed previously (which has no requirement for the sales drop).
• Severe penalties will apply for fraudulent claims

WHAT'S THE AMOUNT OF THE SUBSIDY

• 75% of remuneration paid between March 15 and June 6, 2020, up to a maximum benefit of $847 per week per employee
• For employees related to employer (such as owners and family members), the amount of subsidy is limited to 75% of the employee's average weekly compensation between January 1 and March 15, 2020 and up to $847 a week
  • Here is what we understand: the wage subsidy for compensation paid to the owner and family members are limited to 75% of their regular compensation prior to March 15, 2020
  • This is to prevent people taking advantage of the system by paying more compensation to themselves during this time period
• There is NO overall limit on the subsidy amount that an eligible employer may claim
• Employers must make their best effort to top-up employees’ salaries to bring them to pre-crisis levels (i.e. 100% of regular pay)
• The subsidy will be distributed 14 business days after the application
• Employer needs to apply each month for this subsidy (see below Eligible Periods)

ELIGIBLE CLAIMING PERIODS

HOW TO APPLY

• Through CRA My Business Account or web platform