Updated April 4th
Who is eligible?
Individuals, taxable corporations, partnerships, NPOs and registered charities. No public bodies.
Eligible employers are those that are seeing at least 30% drop in revenues when compared to same period last year. See details below about periods.
Up to 12 weeks, for payroll from March 15, 2020.
Revenue earned from arms length transactions (not with relatives or related companies). Revenue excludes extraordinary items.
Amount of subsidy
The subsidy amount for each employee paid between March 15 and June 6, 2020 would be:
Greater of : 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week OR 75% of employee’s pre-crisis salary up to $847 a week). This means that you can pay an employee more than before the crisis and recover 75% of the wage up to a maximum of $847 a week.
For employers not dealing at arm's lenght with employees (relatives ) - it is the lower of actual wage paid and pre-crisis salary. Can't increase the salary to yourself or relatives to get more subsidy.
Eligible remuneration excludes severance pay, stock options, taxable benefits.
No overall limit on the subsidy.
Eligible periods for revenues comparison
|Claiming period||Reference period for eligibility|
|Period 1||March 15 - April 11||March 2020 over MArch 2019|
|Period 2||April 12- May 9||April 2020 over April 2019|
|Period 3||May 10 - June 6||May 2020 over May 2019|
For eligible employers established after February 2019, eligibility would be determined by comparing monthly revenues to a reasonable benchmark (industry probably).
How to apply?
Through my business account on CRA website.
Interaction with 10% wage subsidy
For employers that are eligible for both the Canada Emergency Wage Subsidy and the 10 per cent wage subsidy for a period, any benefit from the 10 per cent wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period.
Interaction with the Canadian Emergency Response Benefit
An employer would not be eligible to claim the Canada Emergency Wage Subsidy for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the Canadian Emergency Response Benefit (CERB).