The Canada Emergency Wage Subsidy was extended until November 21st to help Canadian businesses during the global COVID-19 outbreak.

As of July 5th, CEWS consists of two parts:

  • a base subsidy that is available to all eligible employees that are experiencing a decline in revenues compared to their baseline, the base subsidy amount depending on how much your revenue decreased;
  • a top-up subsidy is available to businesses that were hardest hit by the pandemic.

The above two-part subsidy applies to all active employees.

Calculation on the wage subsidy is quite complex as it has a few variables, but the CRA has released the online calculator that will help you with that as long as you:

  • determine that you are eligible for the wage subsidy;
  • have profit & loss reports for April, May, June, July 2019 & 2020 to determine your revenue decrease;
  • payroll reports for January 1st to March 15th to determine pre-crisis remuneration to all eligible employees;
  • payroll reports for claim periods.

Once you gather all information above, you can use this calculator to estimate the amount that you can be eligible for Wage Subsidy Calculator

If you have any questions or you need help with gathering documents to apply for the wage subsidy, please reach out to us.

 

Sincerely,

Pelican Bookkeeping Team