Canada Emergency Wage Subsidy Update and How to Register for CRA My Account and My Business Account
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.
- Non-arm’s length employees – A special rule will apply that the subsidy would only be available in respect of non-arm’s length employees employed prior to March 15, 2020
- 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 below:
Instructions for CRA Account Registration
Before you begin, please have your 2018 and 2019 personal tax return with you before you proceed. If you have not filed your 2019 return, please have your 2018 return ready for the verification process below.
If you need to register for CRA My Account for Individuals
- Visit CRA at: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html (Note: An instructional video can be found on this CRA webpage)
- Click on “CRA register” in the section titled “Option 2 – Using a CRA user ID and password”, next to the green CRA login box
- In the pop up box titled “Welcome to CRA’s My Account for Individuals”, please confirm your birth month and proceed by clicking “CRA register”. Due to high volume of traffic in recent days, CRA recommends individuals to only access their online services on certain days of the week. This is to prevent a system overload to their services.
- Enter your SIN, hit next
- Enter your current postal code, date of birth, as well as an amount you entered on one of your personal income tax and benefit returns, hit next
- Create a CRA user ID and password
- Create your security questions and answers
- CRA will mail you a one-time security code, which will be required in order to unlock full access to your online account.
If you already have a CRA My Account and you need to register for CRA My Business Account
(if you do not have a CRA My Account, you will need to register for one at the same time, a video of the process here: https://www.youtube.com/watch?v=6o6w4yUZnNs)
- Visit CRA at: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html
- Click on “CRA login” in the section titled “Option 2 – Using a CRA user ID and password”, this is the green CRA login box. This is the same login information as your CRA My Account
- Review and agree to the terms and conditions
- Enter your 9-digit CRA business number and click add
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.