Canada Emergency Wage Subsidy Update – April 9, 2020
Yesterday, the federal government announced revisions to the Canada Emergency Wage Subsidy. This proposed subsidy requires the recall of parliament and for the bill to be passed into law and receive Royal Assent. Once it this occurs, the details of its availability will be known.
Canada Emergency Wage Subsidy
The proposed changes announced yesterday:
- Employers eligible for the CEWS will be entitled to receive a 100% refund for certain employer-paid contributions to Employment Insurance, Canada Pension Plan, the Quebec Pension Plan and Quebec Parental Insurance Plan provided employees are on leave with pay.
- Revenue loss – it is proposed the employers have the flexibility to compare their revenue of March, April and May 2020 to the same month of 2019, or to an average of their revenue earned in January and February 2020
- Once you choose the method of calculating revenue loss, you have to keep using it for the claiming periods.
- Eligible periods are between March 15 and June 6, 2020.
- For the month of March 2020, the decline in revenue required to qualify for the CEWS has been reduced from 30% to 15%.
- To recognize the difference of timing when revenue is earned and paid, it is proposed that employers be allowed to measure revenues either on the basis of accrual accounting (as earned) or cash accounting (as payments received); however, revenue measurement will have to remain the same during the eligible period.
- Registered charities and non-profit organization will also have additional flexibility in the revenue loss calculation.
My Account and My Business Account
Many of the government assistance programs that have been announced require submissions through both the My Account (individuals) and My Business Account (corporations). The My Business Account is also a useful portal to obtain information on corporate taxes, payroll remittances and HST. We strongly urge everyone to register themselves and their corporations using these accounts to ensure that you are ready when the details of the programs are released.
We have prepared detailed instructions at the following link.
It is uncertain whether we will be able to process the submissions as your representatives, most likely, you will have to submit on your own behalf.
As always, we are here for your questions, please don’t hesitate to contact us.