Quick Answer: How Do I Apply For Emergency Wage Subsidy?

What is the emergency wage subsidy?

The Canada Emergency Wage Subsidy (CEWS), which was announced on April 1, 2020, helps employers protect jobs, rehire employees, and provide workers with a decent income.

The subsidy covers 75 per cent of an employee’s wages (up to $847 per week) for employers who have been hard-hit by COVID-19..

Do I qualify for wage subsidy?

To be eligible to receive the wage subsidy, you must: be an eligible employer. have experienced an eligible reduction in revenue, and. have had a CRA payroll account on March 15, 2020.

What is a government sponsored wage subsidy program?

The government of Canada steps in to help and asks small business owners to provide employment to these individuals in need, and the “wage subsidy” program provides a temporary wage subsidies to the employers who decide to hire and provide work experience and skills enhancement to those eligible program candidates.

How long will Cews last?

12 weeksHow Long will the CEWS Remain in Place? Currently, the program will be available for 12 weeks from March 15 to June 6, 2020, with the possible extension by regulation to no later than September 30, 2020.

What does Cews mean for employees?

Canada Emergency Wage SubsidyLast month, the government introduced the Canada Emergency Wage Subsidy (CEWS) program, which reimburses businesses for a portion of salaries paid out to employees during the crisis.

Can you claim Cews and Cerb?

Both the CEWS and the CERB are taxable. However, if you get paid through the CEWS, employers will withhold all applicable income taxes and payroll deductions, just as they would on any other of your paycheques, said Van Alstine.

What’s a wage subsidy?

A wage subsidy is a payment to workers by the state, made either directly or through their employers. Its purposes are to redistribute income and to obviate the welfare trap attributed to other forms of relief, thereby reducing unemployment. It is most naturally implemented as a modification to the income tax system.

How do I get a 75% wage subsidy?

There are three ways to apply for the subsidy. Most companies can apply using the Canada Revenue Agency’s (CRA) “My Business Account,” but representatives, such as owners, directors, or bookkeepers, can also apply using “Represent a Client,” or companies can use the Web Forms application with their web access code.

How long is wage subsidy?

The Canada Emergency Wage Subsidy (wage subsidy) is a subsidy currently available for a period of twelve weeks (made up of three 4 week periods), from March 15, 2020 to June 6, 2020, that will provide a subsidy of 75% of eligible remuneration, paid by an eligible entity (eligible employer) that qualifies, to each …

What does a subsidy mean?

A subsidy is a benefit given to an individual, business, or institution, usually by the government. … The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.

Can I work while on Cews?

If you are an eligible employer, then you can get the CEWS with respect to “eligible remuneration” paid to “eligible employees”. … Accordingly, eligible employees may still be working or may not be working but still remain on payroll.

Who qualifies for wage subsidy?

To be eligible for the Wage Subsidy Extension, businesses must have had a revenue loss of at least 40% for a 30-day period in the 40 days before they apply, compared to the closest period last year (eg June 2020 compared with June 2019).

Is the emergency wage subsidy taxable?

The Canada Emergency Wage Subsidy is taxable. You must include the amount of CEWS you receive on your Annual Return of Income (e.g. Corporation Income Tax Return, Partnership Return) when calculating your taxable income.

When can I apply for wage subsidy?

Current claim periods open for application: March 15 to April 11 (period 1) April 12 to May 9 (period 2)…Before you applyMake sure your business details and direct deposit information for your payroll accounts (RP) are up to date. … You need to calculate the estimated subsidy for your business.More items…•