On April 21st, the Federal government provided further details regarding the Canada Emergency Wage Subsidy (CEWS). Beginning on Monday, April 27th, businesses can apply for CEWS using CRA’s My Business Account. In the meantime, employers should ensure their business details (inclusive of their business account) and direct deposit information with the CRA are up to date.
A new online calculator for eligible employers to determine how much they will receive from the subsidy is available now. To use the calculator, employers will need to determine their total number of eligible employees and gross payroll.
To be eligible, businesses must show a minimum 15% revenue decline for March, and a minimum 30% revenue decline for April and May. This decline is computed by comparing March, April, or May 2020 revenues to the same month’s revenues in 2019 or comparing March, April, or May 2020 revenues to an average of January and February 2020 revenues. Employers can use either a cash or accrual accounting method. The comparison and accounting method must be used consistently throughout the program period. For further information, please refer to our most recent CEWS article.
The Federal government expects 90% of CEWS applications to be processed by May 5th, with direct deposits and cheques to be processed shortly thereafter. The CRA’s CEWS website contains additional information on eligibility and the application process.
Sign up for our newsletter and receive tax, accounting, and COVID-19 resources for your business!