If your employer laid off workers due to the coronavirus pandemic, they can start applying for the Canada Emergency Wage Subsidy (CEWS) on April 27, 2020, as announced by Prime Minister Justin Trudeau today. This subsidy means you can get partially paid or rehired again for up to 12 weeks, if your employer is eligible.
The Canada Emergency Wage Subsidy allows eligible businesses affected by COVID-19 to get a subsidy of 75% of employee wages for up to 12 weeks, retroactive from March 15 to June 6, 2020.
“This wage subsidy will enable you to re-hire workers previously laid off as a result of COVID-19, help prevent further job losses, and better position you to resume normal operations following the crisis,” explains the government’s CEWS website.
According to the federal government, there are three requirements as to who is an eligible employer to get the subsidy:
- be an eligible employer
- have experienced an eligible reduction in revenue, and
- have had a CRA payroll account on March 15, 2020
As for types of eligible employers (public institutions are not eligible for the subsidy):
- individuals (including trusts)
- taxable corporations
- persons that are exempt from corporate tax (Part I of the Income Tax Act), other than public institutions:
- non-profit organizations
- agricultural organizations
- boards of trade
- chambers of commerce
- non-profit corporations for scientific research and experimental development
- labour organizations or societies
- benevolent or fraternal benefit societies or orders
- registered charities
- partnerships consisting of eligible employers
Businesses also “must determine if your reduced revenue makes you eligible to apply for the wage subsidy in a particular period,” says the government, with requirements of 15% from March 15 to April 11, 2020, and 30% for the subsequent April and May 2020 periods.
“If you determine that you qualify for the CEWS for one claim period, you will automatically qualify for the following claim period,” details the website.
This Canada Revenue Agency (CRA) calculator here can help businesses detail their eligible subsidy amounts, ahead of online CEWS applications on April 27, 2020.
“Get ready to apply by signing up for My Business Account and by registering your payroll account for direct deposit to get your payment faster,” says the CRA.