The eligible remuneration paid to the employee will be a deductible expense for the employer.However, the wage subsidy received by the eligible employer will not be included in the calculation of its qualifying revenue.The wage subsidy program opened for applications from qualifying eligible employers on April 27, 2020.Applications in respect of a claim period can be made only after the end of the claim period, and provided the eligible employer has paid to the eligible employee, the eligible remuneration used to calculate the wage subsidy for that period.Additionally, wage subsidy applications must be made before February 2021.An eligible employer’s payroll frequency (whether biweekly, semi-monthly, monthly, etc.) The employer will be eligible for a maximum weekly benefit of $96 ($600 x 16%) in respect of that employee. In addition, the two employees are now rehired for a reduced weekly salaries of $900 for Ahmed and $300 for Ken (their respective eligible remunerations). At the time of application, the laid off employee expected to have little or no work or income for the four-week period of April 12 - May 9. The wage subsidy received by an eligible employer is considered assistance received from a government immediately before the end of the claim period to which it relates. The eligible employer can however include the portion of the consolidated revenue that arises in the course of ordinary activities in Canada whether or not the ultimate sale to third parties occurs in Canada.For example, an amount representing a portion of the revenue from a sale to a third party by a non-resident member of the group may be included in computing the qualifying revenue of the eligible employer if it can be demonstrated that it arose in the course of the ordinary activities of the group in Canada. This extension was made to address employers who use a payroll provider for employee remuneration.Previously, the subsidy amount for a given employee is 75% of the first $58,700 in remuneration up to a maximum benefit of $847 per week.Beginning on July 5, 2020, this scheme was replaced by a new sliding-scale framework that consists of two parts:The CEWS Program now also uses reference “periods” of time to influence the amount of the subsidy. In that case, while Corporation A will not qualify for the wage subsidy, as it has not experienced the required reduction in revenue of at least 15%, Corporation B will qualify for the wage subsidy because its qualifying revenue has dropped by more than 15%.A non-resident may be part of a group of eligible employers that normally prepares consolidated financial statements (see Q9) or a member of an affiliated group of eligible employers that jointly elects to compute qualifying revenue on a consolidated basis as described in Q10.
The following amounts are not considered eligible remuneration:No. The election is possible since Lyli Inc. acquired all the property that Lysandre used in the course of carrying on her sole proprietorship business in Canada, and none of the main purposes of the acquisition was to increase the amount of the wage subsidy.By electing Lyli Inc. has the option to include the qualifying revenue of her sole proprietorship business to calculate the qualifying revenue for the prior reference period. Since the qualifying revenue of an eligible employer is determined in accordance with its normal accounting practices, and on that basis, it should be determined in such currency.Yes. For more information, go to Upon completion of your application, you will be required to keep records supporting your wage subsidy claim (see Q33).For most complete applications that pass our system validations, a payment will be issued automatically, though some applications may be selected for a pre-claim review.While delays may occur if additional review is required or the CRA needs to contact you, you can generally expect to receive your payment within 10 business days if you are registered for direct deposit on your payroll account.If you are not registered for direct deposit, please allow additional time for your cheque to be delivered by mail to the address on your payroll account.Direct deposit is a fast, convenient, reliable, and secure way to get your CRA payments directly into your account at a financial institution in Canada. For example, an eligible employer would not be able to make adjustments to its qualifying revenue calculations for a prior reference period with unusually low revenue caused by an interruption to its operations due to damage to equipment or premises, an employee lock-out or strike, or a supply chain disruption. The eligible employer has elected to apply the alternative approach to determine its reduction in revenue. For example, salaries and wages paid to a status IndianFor an eligible employer that qualifies for the wage subsidy, the amount of the wage subsidy for a claim period is the total of the following amounts in respect of the claim period (there is no overall limit on the wage subsidy amount that an eligible employer may claim):John and Zac own a corporation, XYZ Ltd. that operates a garage in London, Ontario. All of Corporation A's revenues are from Corporation B with which it does not deal at arm's length. Therefore, to qualify for the wage subsidy, the sick pay, vacation pay or statutory holiday pay must have been paid to the eligible employee in respect of a particular week in the claim period. $375 x 4 weeks = $1,500).In Example 9-1 now consider a situation where XYZ Inc. pays Katherine no salary but only a dividend of $2,000 per month for the period from January 1 to March 15, 2020. Since its business is seasonal, it pays its employees a lower weekly salary during the months of November to March and then pays higher amounts during the months of May until October. While there is a possibility for further extension until December 31, 2020, the Government has not released full details for that period.The goal of the program is to prevent further job losses.