Canada Emergency Wage Subsidy (CEWS) What the changes are

Eligible employers who had any drop in revenue can now qualify for the wage subsidy, starting with the claim periods that began July 5

Periods you can apply for

How the subsidy helps

Get a % of your employees’ pay
per  eligible employee
per  week

The amount you get per employee is based on your revenue drop.

There are different ways to calculate your rate. Use the one that works best for your situation.

For claim periods 1 to 4 (March 15 to July 4, 2020):

  • you must meet a minimum of 15% (period 1) or 30% (periods 2 to 4) revenue drop to qualify for the subsidy
  • if you qualify for a period, you automatically qualify for the following period
  • the subsidy rate is 75% of eligible employees’ remuneration, up to a maximum of $847/week per eligible employee
  • employees who were unpaid for 14 or more consecutive days in the period can’t be included in your calculation

Changes to CEWS as of claim period 5:

  • the subsidy rate varies, depending on how much your revenue dropped
  • if your revenue drop was less than 30% you can still qualify, and keep getting the subsidy as employees return to work and your revenue recovers
  • employers who were hardest hit over a period of three months get a higher amount
  • employees who were unpaid for 14 or more days can now be included in your calculation
  • use the current period’s revenue drop or the previous period’s, whichever works in your favour
    • for periods 5 and 6, if your revenue dropped at least 30%, your subsidy rate will be at least 75%
  • even if your revenue has not dropped for the claim period, you can still qualify if your average revenue over the previous three months dropped more than 50%
  • the maximum base subsidy rate is 60% in claim periods 5 and 6
  • the maximum base subsidy rate will begin to decline in claim period 7, gradually reducing to 20% in period 9

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Pay Less Tax

A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.