The Canada Revenue Agency (CRA) has provided additional information regarding Canada Emergency Wage Subsidy (CEWS) payment reviews and audits. In an effort to reduce errors and non-compliance, the CRA conducts pre-payment CEWS reviews using internal risk assessment tools. Beginning at the end of August, the CRA began conducting post-payment CEWS audits. The CRA has stated that the focus of these audits is to help employers correct errors, maximize the benefit that employers are entitled to, and apply penalties for egregious circumstances like intentional non-compliance. The CRA expects employers to maintain adequate books and records, including ledgers, journals, financial statements, contracts, elections, calculations or other working papers, payroll records, sales invoices and any other relevant document, to support a CEWS eligibility and accuracy claim. Remember to take steps to verify that any communication you receive is indeed from the CRA. If you have any questions about a potential CEWS audit, your business records or support with any other COVID-19 business support program, please reach out to your Bateman MacKay LLP Account Manager.
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