Canada Emergency Wage Subsidy (CEWS) Update – July 19, 2021

Canada Emergency Wage Subsidy (CEWS) Update – July 19, 2021

 

The Canadian government has passed Bill C-30 into law. This bill confirms a few of the key proposals from the federal budget that was announced in April:
  • Canada Emergency Wage Subsidy (CEWS), and Canada Emergency Rent Subsidy (CERS), including Lockdown Support, have been extended until September 25, 2021.
  • A revenue reduction of greater than 10% will be required to be eligible for periods 18 to 20 (periods beginning after July 3, 2021).
  • CEWS and CERS rate will be gradually declining between Periods 18 to 20.
  • CEWS for furloughed employees (ie. on leave with pay) would continue to be available until the end of period 19 (ie. August 28, 2021)
  • A new refundable tax credit named Canada Recovery Hiring Program (CRHP) has been introduced, available for claim periods 17 to 20. You may find the Government’s spreadsheet here, which would calculate which is more beneficial as you have to pick one over the other.

 

The CRHP is a government incentive for hiring employees. If you have increased total remuneration since CEWS claim period 14 (March 14 to April 10, 2021), you may be eligible to recover up to 50% of this increase (up to 40% for claim period 20).
  • Same revenue decline test as CEWS and CERS, as well as same definition of eligible remuneration, except it excludes furloughed employees.
  • More information about CRHP and how to apply can be found at this link.

 

Please note the upcoming due dates for CEWS claims:
  • Period 11 (December 20, 2020, to January 16, 2021) – deadline is July 15, 2021
  • Period 12 (January 17 to February 13, 2021) – deadline is August 12, 2021
  • Period 13 (February 14 to March 13, 2021) – deadline is September 9, 2021

 

Please note the upcoming due dates for CERS claims:

  • Period 4 (December 20, 2020, to January 16, 2021) – deadline is July 15, 2021
  • Period 5 (January 17 to February 13, 2021) – deadline is August 12, 2021
  • Period 6 (February 14 to March 13, 2021) – deadline is September 9, 2021

 



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