Subsidy programs like the CEWS and CERS are ongoing, but a new program also recently began to help hire new staff as businesses start to recover from the pandemic shutdowns.
Program Overview
The Canada Emergency Wage Subsidy (CEWS) was recently extended, and its end date is now set for October 23, 2021. Though there is a potential for further extension, the Canada Recovery Hiring Program (CRHP) may replace it come October.
The CRHP and CEWS are currently both active and running on the same period schedule, but you may only receive subsidy from one program at a time. CRA has built CRHP calculations into the most recent CEWS calculator in order to identify the most beneficial program to claim for the period.
Eligibility
Most of the eligibility criteria for the CRHP and CEWS are the same, including payroll account requirements and revenue drop thresholds. There are some rules that differ slightly for for-profit corporations and partnerships. Full eligibility criteria can be found here.
Eligibility is based on revenue drop, using the same calculations as CEWS and CERS. For Period 17 (June 6 to July 3, 2021, the first period the CRHP is available), your revenue drop must be greater than 0%. For the following Periods 18-22 (July 4 - November 20), your revenue drop must be greater than 10% to qualify for the CRHP.
Subsidy rates are fixed for all periods and are not dependent on % revenue drop. The subsidy rates are as follows:
Calculations
The CRHP is calculated using how much your overall pay (eligible remuneration) to your employees has increased from the time of the base period of March 14 to April 10, 2021, to the time of the claim period. Eligible remuneration amounts are determined using the same criteria as CEWS, and the base period dates are the same as CEWS claim Period 14.
Amounts for employees who were on leave with pay are not included in the CRHP calculation.
We strongly recommend using the CRA’s calculator to determine your subsidy amount. To use the calculator, you’ll need to know the amount you paid to active eligible employees for the claim period and how much you paid active eligible employees in the base period (March 14 to April 10, 2021). The calculator will use the increase in pay from the base period to the claim period to determine your subsidy amount.
Disclaimer: The above explanation is based on information available as of July 30, 2021. The program is likely to change as the situation develops
This info sheet was created by the Young Associates team based on the best information available to us as of the date of posting. We are happy to receive your comments at info@youngassociates.ca.
Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet.
Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.
