75% Canada Emergency Wage Subsidy (CEWS) FAQ

The Canada Emergency Wage Subsidy provides a 75% wage subsidy to eligible employers for up to 12 weeks, and is retroactive to March 15, 2020.

The Government of Canada has created an online CEWS calculator that can be accessed here:

CANADA EMERGENCY WAGE SUBSIDY CALCULATOR

• individuals
• taxable corporations
• partnerships that consist of eligible employers
• non-profit organizations
• registered charities
• non-profit organizations
• agricultural organizations
• boards of trade
• chambers of commerce
• non-profit corporations for scientific research and experimental development
• labour organizations or societies
• benevolent or fraternal benefit societies or orders
• the following prescribed organizations:
- certain Indigenous government-owned corporations that carry on a business
- partnerships consisting of eligible employers and certain Indigenous governments
- registered Canadian amateur athletic associations
- registered journalism organizations
- private schools or private colleges, and
- partnerships consisting of eligible employers (including partnerships where at least 50% of the interests in the partnership are held by eligible employers)

• municipalities
• local governments
• Crown corporations
• wholly-owned municipal corporations
• public universities
• colleges
• schools
• hospitals

You need to show a specified reduction in revenue, or greater, during one of the eligible periods. 

• 15% reduction in March, 2020, or
• 30% reduction in April, 2020, or
• 30% reduction in May, 2020
• 30% reduction in June, 2020

PLEASE NOTE If you qualify for any of the eligible periods, you automatically qualify for the following period.

EXAMPLE You qualified for Period 1, therefore you also automatically qualify for Period 2 regardless of revenue increases or reductions.

1) You can compare your year-over-year revenue for each month.

EXAMPLE Your revenue in March 2019 was $100,000. Your revenue in March, 2020 was $80,000. This is a 20% decline year-over-year, so you would qualify for Period 1 (March 15 - April 11).

2) You can compare your average income for January and February, 2020 against any eligible period.

EXAMPLE Your revenue in January, 2020 was $150,000 and your revenue in February, 2020 was $50,000 for a total of $200,000. Therefore, your average revenue over those two months was $100,000. If your March, 2020 revenue was $70,000, this is a 30% decline, so you would qualify for Period 1 (March 15 - April 11).

PLEASE NOTE Once you select a comparison method, you must continue to use that method for the duration of the program.

You may use either accrual accounting (as they are earned) or cash accounting (as they are received) for your calculations.

PLEASE NOTE Once you select an accounting method, you must continue to use that method for the duration of the program.

The calculations will be made using your revenue in Canada earned from arm’s-length sources, excluding revenues from extraordinary items (ex. a one-time gain or loss not expected to recur in the future) and it will be calculated using your normal accounting method.

For non-arm's length employees, they must have been employed prior to March 15, 2020, and the subsidy will be:

• limited to remuneration paid in any period between March 15 and June 6, 2020
• capped at the lesser of 75% of the employee’s pre-crisis weekly remuneration OR $847

Yes. When they are on leave with pay, you will still have to pay EI, CPP and tax will be taken off, too. However, you will get a refund on your EI and CPP premiums.

In general, an employee will be considered to be on leave with pay throughout a week if that employee is remunerated for that week but does not perform any work for the employer in that week. The EI and CPP refund would not be available for eligible employees that are on leave with pay for only a portion of a week.

No. There is no cap on the amount of CEWS an employer can claim.

Their current wages are also eligible for a 75% subsidy, up to a maximum of $847 per week.

No, but it is highly recommended, where possible, that you maintain existing employees’ pre-crisis employment earnings. 

Yes, but any benefit from the 10% wage subsidy will generally reduce the amount available to you under the CEWS in that same period.

Yes, but any EI benefits received by employees through the Work-Sharing program reduce the benefit that you are entitled to receive under the CEWS.

Yes. The wage subsidy is considered government assistance and is included in your taxable income.

You will be able to apply through the Canada Revenue Agency's My Business Account portal and must do so before October, 2020. More details about the application process will be made available shortly.

Fraudulent claim penalties will include fines and possible imprisonment. If you artificially reduce revenue for the purpose of claiming the CEWS, you will be required to repay the full subsidy as well as a penalty of 25 percent of the value of the subsidy claimed.