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CPA

Extended Canada Emergency Wage Subsidy-CEWS

Extended Canada Emergency Wage Subsidy-CEWS

Canada Emergency Wage Subsidy-CEWS        

Period 1-4 (March 15 to July 4)-Original Rules

Extended Canada Emergency Wage Subsidy-CEWS

 

Election – An election should be filed to use the average monthly gross revenues from January and February of 2020 as the Baseline Revenue instead of current month revenues. If the election is made, the alternative calculation method must be used for all of these periods (1-4).

If an employer is eligible for a period from 1-4, you will also be eligible for the following period automatically.

Subsidy Calculation – If eligible as per the above chart, the subsidy would be the greater of:

i)                75% of the amount of eligible remuneration paid, up to a maximum benefit of $847 per week; and

ii)               the amount of remuneration paid, up to a maximum benefit of $847 per week or 75% of the employee's pre-Covid weekly remuneration,

iii)              The claim for a non-arm’s length employee cannot exceed 75% of pre-Covid weekly remuneration.

 

Periods 5-6 (July 5 to Aug 29) Extended CEWS

 

Under safe harbour rule, employers can chose the original set of rules for periods 5 and 6, rather than the new rules, if this increases their subsidy. So, both sets of rules can run in parallel for periods 5 and 6 for the maximum benefits of the employer. But once the comparison test is chosen  for period 5, It must be then used for the balance of the program for calculating both the base and top-up CEWS rates. The election or choice made for periods 1 to 4 under the original rules does not affect the decision for period 5.

 

Periods 7-9 (Aug 30 to Nov 21) Extended CEWS

The subsidy is sum of two components: the base subsidy and the top-up subsidy.

Base Subsidy

Extended Canada Emergency Wage Subsidy-CEWS

Top-up Subsidy

Extended Canada Emergency Wage Subsidy-CEWS                        Period 10 –Details have not yet been released.