April 22, 2020
The federal government has announced that companies will be able to start applying for the Canadian Emergency Wage Subsidy on Monday, April 27 and that payments are expected to begin on Tuesday, May 5.
In addition, Prime Minister Trudeau announced the Emergency Community Support Fund, a $350 million support to community and non-profit organizations providing COVID-19 assistance.
Canadian Emergency Wage Subsidy Application
Companies will be able to start applying for the Canadian Emergency Wage Subsidy on Monday, April 27.
Applications will be handled through the Government of Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
The site has a number of links to provide details and answers to questions employers may have including:
- Who is an eligible employer
- A guide to determining eligible employees and the eligible remuneration
- A calculator to determine your subsidy amount
- Instructions on how to apply
The ‘Instructions on how to apply’ section notes that the CEWS will be processed at the payroll program (RP) account level. This means that you will be required to file a separate application for each RP account.
My recommendation is that you or your representative visit the site as soon as possible in order to be best prepared for the full application on April 27.
The section on the site entitled ‘Who is an eligible employer’ will guide you or your representative through the the criteria, which are as I have advised in earlier updates:
- Wage subsidy of 75% available on a maximum salary of $58,700 ($847 per week) for up to 12 weeks.
- Available to all Canadian businesses, not-for-profits and charities that see the required revenue reductions. Public bodies will not be eligible for this subsidy.
- Businesses will need to show a 15% revenue reduction in March and 30% reduction in April and May (compared to either 2019 figures or 2020 figures), or to an average of their revenue earned in January and February 2020.
- No overall limit on the subsidy amount that an eligible employer may claim.
- Subsidy will be retroactive to March 15, 2020.
- Businesses may measure revenue on the basis of accrual accounting (as they are earned) or cash accounting (as they are received); once a method is chosen, they will have to stick to the chosen accounting method.
- Businesses are eligible for specific periods:
- March 15, 2020 to April 11, 2020
- April 12, 2020 to May 9, 2020
- May 10, 2020 to June 6, 2020
- Once an employer is found eligible for a specific period, they will automatically qualify for the next period of the program.
- Non-profits will be allowed to include or exclude government funding in their applications.
- The CEWS will provide an additional amount to compensate employers for their contributions to the Canada Pension Plan and Employment Insurance in respect of eligible employees who are on leave with pay due to COVID-19.
- The employer will be required to repay amounts paid under the CEWS if they do not meet the eligibility requirements.
Help for Charities: Emergency Community Support Fund
This $350 million support to community and non-profit organizations providing COVID-19 assistance will be flowed through national organizations that have the ability to get funds quickly to local organizations.
It will support the following activities:
- Increasing volunteer-based home deliveries of groceries and medications.
- Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointments.
- Scaling up help lines that provide information and support.
- Helping vulnerable Canadians access government benefits.
- Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response.
- Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet.