Canada Emergency Wage Subsidy-CEWS
Period 1-4 (March 15 to July 4)-Original Rules
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.
Period 10 –Details have not yet been released.