New Variable Subsidy:
Applications for claim period 5 (July 5 to August 1) will open August 17, 2020.
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 40-week period, from March 15 to December 19, 2020** (July 17, 2020 Updated)
An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees.
Stiff and severe penalties for those that take advantage of the system.
Employers are encouraged to rehire recently laid-off employees.
Interaction with 10 per cent Wage Subsidy
On March 18, 2020, the Prime Minister announced a temporary 10 per cent wage subsidy. For employers that are eligible for both the Canada Emergency Wage Subsidy and the 10 per cent wage subsidy for a period, any benefit from the 10 per cent wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period.
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.
Eligibility
- Include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
- Employers include individuals, taxable corporations, and partnerships consisting of eligible employers as well as non‑profit organizations and registered charities.
- This subsidy would be available to eligible employers that see a drop of at least 15 per cent of their revenue in March 2020 and 30 per cent for the following months (see Eligible Periods)
- Employers must attest that they are doing everything that they can to pay the remaining 25%
- Employers have had a CRA payroll account on March 15, 2020
- Eligibility for the CEWS of an employee’s remuneration will be limited to employees that have not been without remuneration for more than 14 consecutive days in the eligibility period, i.e., from March 15 to April 11, from April 12 to May 9, and from May 10 to June 6
Eligible Periods:
Claiming period Required reduction in revenue Reference period for eligibility Period 1 March 15 to April 11 15% March 2020 over: March 2019 or Average of January and February 2020
Period 2 April 12 to May 9 30% April 2020 over: April 2019 or Average of January and February 2020
Period 3 May 10 to June 6 30% May 2020 over: May 2019 or Average of January and February 2020
Period 4 June 7 to July 4 30% June 2020 over: March 2019 or Average of January and February 2020
Period 5 July 5 to August 1 Any revenue decline in July 2020 July 2020 over: July 2019 or Average of January and February 2020
Period 6 August 2 to August 29 Any revenue decline in Aug 2020 Aug 2020 over: August 2019 or Average of January and February 2020
Period 7 August 30 to Sep 26 Any revenue decline in September 2020 Sep 2020 over: September 2019 or Average of January and February 2020
Period 8 Sep 27 to October 24 Any revenue decline in October 2020 Oct 2020 over: October 2019 or Average of January and February 2020
Period 9 October 25 to Nov21 Any revenue decline in November 2020 Nov 2020 over: November 2019 or Average of January and February 2020
Period 10 Nov 21 to Dec 19 Not available Yet Not available Yet
Base subsidy
| Qualifying Period | July 5 to August 1 | Aug 2 to Aug 29 | Aug 30 to Sep 26 | Sep27 to Oct 24 | Oct 25 to Nov 21 |
| Maximum base rate (requires at least 50% reduction in revenues) | 60% | 60% | 50% | 40% | 20% |
| Maximum base benefit per employee | $677.40 | $677.40 | $564.50 | $451.60 | $225.80 |
| Base rate for employers with revenue reduction of 0 to 49% | 1.2 x revenue drop | 1.2 x revenue drop | 1.0 x revenue drop | 0.8 x revenue drop | 0.4 x revenue drop |
Top-up subsidy
For wages paid from July 5 to November 21, 2020, an additional top-up subsidy of up to $282.25 per employee is available to employers who have been particularly hard-hit. Employers who experience a three-month average revenue reduction of more than 50% are eligible to receive the top-up subsidy. The top-up will equal 1.25 times the average revenue drop exceeding 50%, with a maximum top-up of 25% of remuneration paid (applies to remuneration of up to $1,129 per employee per week).
How to Apply
- Eligible employers would be able to apply for the Canada Emergency Wage Subsidy through the Canada Revenue Agency’s My Business Account portal as well as a web-based application.
- Alternatively, you may apply using a separate online application form (available April 27)
What Can Employer Do Now?
Employers should ensure that they are registered with the CRA for direct deposit and should also assemble records so that, when the application portal opens in 3-6 weeks, they will be in a position to demonstrate the 15% reduction in gross revenues for March and the amount of the pre-crisis remuneration paid to employees.
More Info
https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html
