Q: What is the Canada Emergency Wage Subsidy (CEWS) and how to apply?

May 13th, 2020

The Canada Emergency Wage Subsidy (CEWS) provides a 75% wage subsidy to eligible employers. If you need assistance applying, please contact us for a consultation.

Eligibility:

  • Canadian Business - Taxable Corporation, Sole Proprietor, Partnership, Charity, or Not for Profit
  • Public Bodies are not eligible
  • To qualify, you must demonstrate that your revenues in March fell by 15%, and April and May revenues have dropped by at least 30% as a result of COVID-19
  • The period of revenue comparison is either over the same period last year or vs. the average of January and February of this year
  • The second comparison metric was designed to address those businesses that are start ups, or have been in high growth mode
  • NOT driven by number of employees
  • NOT driven by size of payroll
  • Applies to existing or new arm's length employees
  • For employees who are non-arms length to the business (ie, owners, shareholders, family members), the maximum amounts that can be claimed will be determined by pre-crisis salaries paid to these individuals.
  • The non-arms length individuals must also have been on payroll prior to March 15th
  • It is not mandatory for the business to pay the remaining 25% of the wage, however it must be attested that every effort was made to do so.
  • It does not matter if the business has closed its doors or is still operating.

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