The federal government yesterday announced that it would begin accepting applications for the Canada Emergency Wage Subsidy (CEWS) on April 27th, 2020. Businesses should expect to receive funds in May.
Ottawa also released details on how to apply for the CEWS, which for organizations registered with the Canada Revenue Agency, can be managed through their My Business Account. Organizations represented by a third-party such as a bookkeeper or accountant can apply using the Represent a Client portal. Businesses can also apply using an online application form, which will be available on April 27th.
Companies expecting a payment of $25 million or more will be paid through the large value transfer system (LVTS). To receive funds, your organization will need to be registered for direct deposit on your payroll account and be registered for the LVTS. Otherwise, you will also need to register for LVTS.
Organizations will need to file a separate application for each multiple payroll (RP) account as the Canada Emergency Wage Subsidy will be processed through the payroll program. Prior to applying, organizations are also required to calculate their estimated subsidy. CRA requires that you disclose information such as your number of eligible employees and gross payroll. The CEWS calculator will allow you to preview the amount of your wage benefit.
As we noted in previous blogs the CEWS provides a subsidy of up to 75 per cent of the first $58,700 earned by employees of qualifying companies—for up to three months—retroactive to March 15, 2020. The program is in effect until June 6, 2020, and covers up to $847 per week per employee.
For more information on this federal government program and others designed to assist businesses struggling in the face of COVID-19, please contact a member of our team at any time.
Armando Iannuzzi, Co-Managing Partner