Extension and Expiration:
The Canadian Emergency Wage Subsidy (CEWS) and Canadian Emergency Rent Subsidy (CERS) are ongoing with the 2021 Budget proposing to extend them to September 25, 2021. Both are based on the same revenue qualification and periods. Period 9 (Oct 25 to Nov 21) expires May 20th and each month an additional period expires (you have 180 days from the CEWS/CERS period end date to file a claim).
- Eligibility for both CEWS and CERS are based on revenue declines.
- CEWS – is a payroll subsidy.
- CERS – is a rent/ownership subsidy for property used by a business (for businesses that rent you can claim rental costs and for businesses that own property you can claim property taxes, mortgage interest and property insurance)
If you believe you qualify for either of these subsidies and have not yet submitted a claim and would like assistance, please contact Julia Crate – email@example.com.
Julia Crate, CPA, CA
As the government sponsored subsidies have evolved, I want to reach out and ensure that you have applied for the applicable support and to offer assistance if required. The following is a brief summary of the common COVID related subsidies and some of the pertinent details:
- TWS (Temporary Wage Subsidy for Employers)
- 10% of remuneration paid as a reduction in tax remittances
- Initial wage subsidy available March 18, 2020 to June 19, 2020
- $25,000 maximum per employer
- $1,375 maximum per employee
- Eligible employers must complete a PD27 Form (found on the CRA website or CLICK HERE to download for your convenience)
- CEWS (Canada Emergency Wage Subsidy)
- CEWS must be reduced by amount of TWS claimed for each period
- Period 1 – eligible if revenue declined by at least 15% and Period 2 to 4 – eligible if revenue declined by at least 30%March 15, 2020 to July 4, 2020
- 75% up to $847 per week per employee
- Employees unpaid for 14 or more days in period are not eligible
- Periods 5 to present – July 5, 2020 to November 21, 2020
- Subsidy varies based on revenue decline – online calculator and CRA spreadsheet required to determine amount of subsidy
- Employees unpaid for 14 or more days qualify
- The below link to the wage subsidy calculator may be used to estimate eligibility, however, the actual calculation must be determined using the CRA calculator/spreadsheet.
- CEBA (Canadian Emergency Business Account)
- Available until October 31, 2020
- $40,000 government loan
- $10,000 forgivable if loan is repaid in full by December 31, 2022
- Need a business bank account and CRA account
- Payroll of $1,500,000 or less in 2019
- CECRA (Canadian Emergency Commercial Rent Assistance)
- April through September 2020
- Rent reduction of up to 75%
Check CRA website for the latest news on COVID 19 and what subsidies are available: https://www.canada.ca/en/services/benefits/covid19-emergency-benefits.html