If you are an employer who has lost revenue because of the COVID-19 pandemic crisis, you may be eligible for a subsidy for employee wages.
What Is The CEWS From Canada Revenue Agency?
Per the CRA, “As a Canadian employer whose business has been affected by COVID-19, you may be eligible for a subsidy of 75% of employee wages for up to 24 weeks, retroactive from March 15, 2020, to August 29, 2020.”
To receive this subsidy, there are a number of steps for you to follow with the Canadian Revenue Agency (CRA):
- Determine if you are an eligible employer.
- Calculate your eligible revenue reduction.
- Determine your eligible employees.
- Calculate your subsidy amount.
- Determine when and how to apply.
- Get your payment.
Who Is Eligible?
Most individuals, corporations, and partnerships in Canada will qualify for the CEWS if you have experienced revenue loss. For more information, see here.
Here is a short video giving you an overview of the CEWS and who is eligible:
What Is An Eligible Revenue Reduction
You will need to make a calculation of what part of your reduced revenue is eligible for subsidy—from this page on the CRA website.
Determine Your Eligible Employees
There are a number of factors to be taken into account in determining which of your employees are eligible for the CEWS (are your employees employed in Canada?, have you re-hired them after being laid off?, etc.). This page walks you through the determination steps.
Calculate Your Subsidy Amount
Your next step is calculating your subsidy amount, using figures such as the number of eligible employees and your payroll. This page will give you the information on this calculation.
When And How To Apply
There are six claim periods for the CEWS (March 15 to April 11, April 12 to May 9, May 10 to June 6, June 7 to July 4, July 5 to August 1, and August 2 to August 29).
You will need to submit an application for each period. You can apply through the CRA website using your “My Business Account” account, your accountant can apply for you, or you can apply using the Web Forms application.
Getting Your Subsidy
Per this page, if your application is approved, you will receive either a direct deposit or a mailed cheque. Your information is subject to verification, and you will need to have documentation to support what you are claiming.
Contact Shaw & Associates Chartered Accountants for accounting help you can count on. One complimentary meeting with us will put you and your business on a more profitable and positive path.