The Canada Emergency Wage Subsidy or “CEWS” program will be effective for 12 weeks, between March 15, 2020, to June 6, 2020.
The CEWS will subsidize 75% of the first $58,700 of regular salary per employee. The CEWS amounts to a maximum of $847 per week per employee and is retroactive to March 15, 2020. Some exclusions are employee stock options, severance payments and benefits associated with personal use of a corporate vehicle.
In order to qualify, employers must show a gross revenue decrease of at least 30% during the months of March, April, or May 2020 compared to the gross revenues of the same months during 2019.
Businesses may be eligible for CEWS for the month of March if they show a 15% decline in March 2020 revenues as compared to March 2019. Also, businesses can compare their revenues from
January and February of 2020 in determining the 30% decline in revenues for CEW. Details are still coming.
For each of the claim periods, companies must reapply.
CEWS amounts are based on the salary or wages paid to employees and employers are expected to “make best efforts” to top up employees’ salaries to 100%.
The claiming periods for the wage subsidy include March 15- April 11, April 12 to May 9 and May 10 to June 6
How to Apply
A CRA online portal will be available soon.
Be certain to have access to the CRA MY BUSINESS ACCOUNT, to have the quickest access to funds.
CEWS support will be available in approximately six weeks.
For those employers that are not eligible for CEWS, the 10% Wage Subsidy will be available with limits of $1,375 per employee to a maximum of $25,000 per employer.
More information can be found on the Department of Finance website