CEWS Eligibility has been expanded and there is a new form to file for the Temporary Wage Subsidy
Temporary 10% Wage Subsidy – a new form to file
If you claimed the 10% wage subsidy on the remuneration paid from March 18 to June 19, 2020, there is a requirement to complete and file a Self-Identification Form (form PD27) to the Canada Revenue Agency. This information will be used to reconcile the subsidy on the employer’s payroll account and should be submitted before the end of the calendar year to ensure you do not receive a discrepancy notice.
This form can also be used to make your claim, if you did not claim the subsidy by reducing your payroll remittances for March through June.
If you need assistance completing this form, please contact us.
Changes to the Canadian Emergency Wage Subsidy (CEWS)
It is apparent from the daily headlines that the COVID-19 pandemic continues to negatively impact our workplaces and the economy. The Canadian Government has made sweeping, and very complex, amendments to the CEWS program. These amendments enhance the CEWS to support workers and businesses for a longer period and minimize the applicants’ requirements to allow for greater number of employers to qualify for the assistance. The subsidy will be accessible to a broader range of employers including employers with a revenue decline of less than 30 percent and providing a gradually decreasing base subsidy to all qualifying employers.
The CEWS will consist of two parts:
- A base subsidy of up to 60% which will be available to all eligible employers that are experiencing a decline in revenues of any percentage and not restricted to the previous 30% revenue reduction threshold, with subsidy amounts varying depending on the scale of revenue decline; and
- A top-up subsidy of up to an additional 25% for those employers that have experienced an average decline of over 50% in the preceding 3 months.
An employer’s CEWS entitlement will depend on many variables and might have to factor in:
- multiple methodologies for calculating qualifying revenues and declining revenues;
- up to eight different formulae for each of their employees;
- multiple possible baseline remuneration periods, with such periods being selected on an employee-by-employee basis; and
- for some “safe harbour periods”, multiple methodologies for calculating the subsidy amount, with the possibility that different methodologies might be preferred for certain employees and not others.
It will certainly be a challenge navigating the new framework and calculating the CEWS entitlement. If you have any questions or need assistance with working through the new framework, please contact us and will we be happy to assist you. Our firm has the expertise to run the various scenarios to ensure that you receive the maximum and comply with the legislation.
Lott & Company