CRA Updates for Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Response Benefit (CERB)
April 14, 2020

As information is rapidly developing on COVID-19, Progress Group is committed to assisting employers in dealing with the impacts of COVID-19 on the workplace. This remains a very fluid situation and we will continue to update our clients as circumstances change. 

Please find the key points to these updates below. For full details, please click here.

CEWS Eligibility – Revenue
Eligible employers who suffer a drop in gross revenues of at least 15% in March, and 30% in April or May, when compared to the same month in 2019, will be able to access the subsidy. Employers would be required to attest to the decline in revenue in applying for the subsidy.

CEWS Criteria – Eligible employers will include employers of all sizes and across all sectors of the economy, excluding public sector entities
Eligibility for employees is limited to individuals employed in Canada, and employees that have not been without remuneration for more than 14 consecutive days in the eligibility period. The eligibility periods include: March 15 to April 11, April 12 to May 9, and May 10 to June 6. This rule replaces the previously announced restriction that an employer would not be eligible to claim the CEWS for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the Canadian Emergency Response Benefit.

CEWS Financial Coverage
The subsidy will cover up to 75% of wages on the first $58,700 that an employee earns, up to a maximum of $847 a week. The program will be in place for a 12-week period, from March 15 to June 6, 2020. There is no overall limit on the subsidy amount that an eligible employer may claim.

CERB Application
On April 6, 2020, the Federal Government announced it will continue to review the CERB benefit, including making legislative changes to “fill the gaps”, including eligibility and support for individuals working reduced hours due to COVID-19.
Updates on how to apply the 10% Temporary Wage Subsidy

10% Temporary Wage Subsidy
The 10% Temporary Wage Subsidy is still available for three-month to eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency. The subsidy, which is considered a taxable income, is equal to 10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee to a maximum of $25,000 total per employer. The subsidy calculation is based on the total number of eligible employees employed at any time during the three-month period. The CRA will not calculate the allowable subsidy, it is the responsibility of the employer or whoever is in control of payroll remittances to determine the amount. If eligible employers do not reduce their payroll remittances during the year, the subsidy can still be calculated for the same period, and at the end of the year the CRA will pay the amount to the employer or transfer it to the next year’s remittance.

For more information or to address specific concerns, please reach out to me directly at the number or email below.

SUBSCRIBE TO OUR MAILING LIST

CONTACT US

GET IN TOUCH

We’d love to work with you. Let’s talk.

Oakville Office
860 Progress Court
Oakville, ON L6L 6K1

Toronto Office
67 Mowat Ave, Suite 441
Toronto, ON M6K 3E3

(905) 448 3495

(289) 919 2494

CONTACT US

GET IN TOUCH

We’re ready when you need us. Let’s talk.

[email protected]

Tel: (905) 448 4395

Fax: (289) 919 2494

Oakville Office
860 Progress Court, Oakville, ON L6L 6K1

Toronto Office
67 Mowat Ave, Suite 441, Toronto, ON M6K 3E3