To help employers keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic, Ottawa said today it is implementing the Canada Emergency Wage Subsidy (CEWS) as well as a calculator to help in the application process.
The economic measure provides a 75% wage subsidy of up to $847 per employee per week, to eligible employers, for up to 12 weeks, preventing further job losses and encouraging employers to re-hire workers previously laid off as a result of COVID-19, retroactive to March 15, 2020.
“Following on the successful delivery of Canada Emergency Response Benefit payments to millions of Canadians, I am confident in the CRA’s ability to administer this critical fiscal measure that will provide urgently-needed support for Canadian employers and workers,” said Diane Lebouthillier, the minister of national revenue.
“Launching the CEWS calculator is an important first step to ensuring employers are equipped to apply for the subsidy.”
The CEWS calculator can be found on CRA’s Canada Emergency Wage Subsidy Web page. The Web page incorporates feedback received during user testing with stakeholders, including the Canadian Federation of Independent Business and the Chartered Professional Accountants of Canada.
It includes information and instructions about who can apply for the subsidy, how eligibility is assessed, and how the subsidy is calculated.
The calculator also includes a printable statement feature that employers can use to view their claim at a glance and, as of April 27, enter required information into the CEWS application form quickly and easily.
By providing employers with additional details about their subsidy claim, the CEWS calculator can equip employers with important information they can use now to make more informed decisions about retaining and re-hiring workers. A series of information sessions will be held in the coming days to provide a forum for eligible employers.
“The CRA also encourages employers to sign up for My Business Account or Represent a Client, as employers will be able to apply through these portals,” a release stated. “The CRA will open the application process on April 27. CEWS claims will be subject to verification by the CRA, therefore the CRA will begin to release funds for approved applications on May 5.”
Dan Kelly, president of the Canadian Federation of Independent Business, said the subsidy will help many small business owners keep their employees during the COVID-19 pandemic.
“This will remove the stress of losing a job for workers and allow employers to bring their teams back together quickly as soon as the emergency phase is over. CFIB appreciates the work of the Canada Revenue Agency in operationalizing this key benefit. We were pleased to provide feedback to the CRA on its calculator designed to make it easier for firms to access the wage subsidy.”
