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What is the Canada Emergency Wage Subsidy (CEWS)?

27, 05-2021

Starting April 27, 2020, eligible employers, including individuals, corporations and nonprofits, may apply for the Canadian Emergency Wage Subsidy (CEWS). This allows Canadian employers who have been impacted by COVID-19 to receive a subsidy of up to 75% to cover employee wages for the period retroactive March 15, 2020 to March 13, 2021. The subsidy will be available until June 2021. See HERE for the new changes.

There are new changes to CEWS as of claim period 5 and later (July 5 to  December 19, 2020). The subsidy rate varies, depending on how much your revenue dropped, and 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. For claim periods 11 to 13 (December 20, 2020, to March 13, 2021), the maximum top-up subsidy rate is 35%, the maximum subsidy amount for employees on leave with pay is $595 and the base revenue drop comparison months for period 11 will be the same as period 10. For claim periods 14 to 16, the maximum wage subsidy rate for active employees remains at 75%, and leave pay remains unchanged from previous periods.

If you missed the deadline for a claim period, you may now ask us to review your late request to apply for the subsidy (or increase your previously-claimed subsidy amount) under certain circumstances. You have a limited time to send a late request, and you must contact us first to see if you qualify. Updates can be found here.

The online CEWS calculator can be used to help estimate your subsidy amount. Applications can be submitted through various means, including the CRA. For additional information on eligibility and how to apply, visit the Government of Canada CEWS page.

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