Ottawa: Canada Revenue Agency (CRA) yesterday announced that it will open the Canada Emergency Wage Subsidy (CEWS) application process on April 27.
CEWS claims will be subject to verification by the CRA. Funds for approved applications will begin to be released on May 5.
A Canada Emergency Wage Subsidy calculator to support employers as they prepare to apply for CEWS, was launched yesterday.
The CEWS calculator can be found on Canada Revenue Agency (CRA) Canada Emergency Wage Subsidy Web page.
To help employers keep and re-hire workers amidst the challenges posed by the Covid-19 pandemic, the government is implementing CEWS, which provides a 75% wage subsidy of up to $847 per employee per week, to eligible employers, for up to 12 weeks, preventing further job losses and encouraging employers to re-hire workers previously laid off as a result of Covid-19, retroactive to March 15, 2020.
The CRA CEWS web page incorporates feedback received during user testing with stakeholders, including the Canadian Federation of Independent Business and the Chartered Professional Accountants of Canada. It includes detailed information and instructions about who can apply for the subsidy, how eligibility is assessed, and how the subsidy is calculated. The calculator also includes a printable statement feature that employers can use to view their claim at a glance and, as of April 27, enter required information into the CEWS application form quickly and easily, said a CRA statement.
By providing employers with additional details about their subsidy claim, the CEWS calculator can equip employers with important information they can use now to make more informed decisions about retaining and re-hiring workers. A series of information sessions will be held in the coming days to provide a forum for eligible employers.
The CRA also encourages employers to sign up for My Business Account or Represent a Client, as employers will be able to apply through these portals.
“The Canada Revenue Agency has a proven track record of delivering benefits to millions of Canadians every year. Following on the successful delivery of Canada Emergency Response Benefit payments to millions of Canadians, I am confident in the CRA’s ability to administer this critical fiscal measure that will provide urgently-needed support for Canadian employers and workers. Launching the CEWS calculator is an important first step to ensuring employers are equipped to apply for the subsidy,” said Diane Lebouthillier, Minister of National Revenue.
“The Canada Emergency Wage Subsidy will help many small business owners keep their employees during the Covid-19 pandemic. This will remove the stress of losing a job for workers and allow employers to bring their teams back together quickly as soon as the emergency phase is over. CFIB appreciates the work of the Canada Revenue Agency in operationalizing this key benefit. We were pleased to provide feedback to the CRA on its calculator designed to make it easier for firms to access the wage subsidy,” said Dan Kelly, President, Canadian Federation of Independent Business.
Quick Facts
The Canada Emergency Wage Subsidy is one of the measures the Government of Canada announced as part of their economic response to support Canadians through the Covid-19 pandemic.
In addition, employer-paid contributions to Employment Insurance (EI), the Québec Parental Insurance Plan (QPIP), the Canada Pension Plan (CPP) and the Québec Pension Plan (QPP) will be refunded when paid in respect of employees that are on leave with pay.
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