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Important: Learn about the key points to Canada's Economic Stimulus plan

Client Communication:

The Canada Emergency Wage Subsidy

September 3, 2021


The Canada Emergency Wage Subsidy (CEWS) is a subsidy from The Government of Canada available to eligible Canadian employers.
To be eligible to receive the wage subsidy, an employer must meet all three of the following criteria:

    1. Have had a CRA payroll account on March 15, 2020
    2. Be one of the specified type of employers detailed on the CRA website
                https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-who-apply.html#h-1
    3. Have experienced a drop in revenue

The program has started on March 15 and is currently extended to September 25, 2021 (period 20).

The CEWS is calculated on a per-employee, per-week basis. The maximum subsidy that can be received varies by claim period. Please refer to the charts below for the maximum weekly amounts per employee.

The amount of subsidy that can be received is determined by the CEWS rate, which in turn is determined by the rate of revenue drop in a given month.

Under the general year-over-year approach, the eligible employer compares its qualifying revenue in the relevant month for the current reference period (i.e. claim period) to that of the same month year-over-year.

Under the alternative approach, an eligible employer may compare its qualifying revenue in the current reference period with that of its average revenue earned in the months of January and February of 2020. Hence, under the alternative approach, the prior reference period for a claim period is January and February 2020. An election is required to use the alternative approach.

Once the approach is selected, it must be used for all consecutive periods.

Periods 1-12 have been closed for the application. If you made a mistake on your application in these periods, you can request a change to your previous claim through the CRA’s online portal as long as the claim is being reduced. Amendments to increase cannot be made.


Period 1Period 2Period 3Period 4
Claim PeriodMar 15 - Apr 11, 2020 Apr 12 - May 9, 2020May 10 - Jun 6, 2020Jun 7 - Jul 4, 2020
Max. Benefit per Employee$847.00$847.00$847.00$847.00
Baseline RevenueMarch 2019
or
average of January and February 2020
April 2019
or
average of January and February 2020
May 2019
or
average of January and February 2020
June 2019
or
average of January and February 2020
Claim Period RevenueMarch 2020April 2020May 2020June 2020
Required Drop15%30%30%30%


Period 5Period 6Period 7Period 8
Claim PeriodJul 5 - Aug 1, 2020Aug 2 - Aug 29, 2020Aug 30 - Sept 26, 2020Sept 27 - Oct 24, 2020

Max. Benefit per

Employee

$677.40 (60%x $1,129)$677.40 (60%x $1,129)$564.50 (50%x $1,129)$451.60 (40%x $1,129)
Revenue Drop



Over 50%60%60% 50% 40%
0% to 50%1.2 x revenue drop1.2 x revenue drop1.0 x revenue drop0.8 x revenue drop


Period 9Period 10Period 11Period 12
Claim PeriodOct 25 - Nov 21, 2020Nov 22 - Dec 19, 2020Dec 20, 2020 - Jan 16, 2021Jan 17 - Feb 13, 2021

Max. Benefit per

Employee

$451.60 (40%x $1,129)$451.60 (40%x $1,129)$451.60 (40%x $1,129)$451.60 (40%x $1,129)
Revenue Drop



Over 50%40%40%40%40%
0% to 50%0.8 x revenue drop0.8 x revenue drop0.8 x revenue drop0.8 x revenue drop



Remaining periods are available as follows:


Period 13Period 14Period 15Period 16
Claim PeriodFeb 14 - Mar 13, 2021Mar 14 - Apr 10, 2021Apr 11 - May 8, 2021May 9 - Jun 5, 2021
Max. Benefit per
Employee
$451.60 (40%x $1,129)$451.60 (40%x $1,129)$451.60 (40%x $1,129)$451.60 (40%x $1,129)
Revenue Drop



Over 50%40%40%40%40%
0% to 50%0.8 x revenue drop0.8 x revenue drop0.8 x revenue drop0.8 x revenue drop


Period 17Period 18Period 19Period 20
Claim PeriodJun 6 - Jul 3, 2021Jul 4 - Jul 31, 2021Aug 1 - Aug 28, 2021Aug 29 - Sept 25, 2021
Max. Benefit per
Employee
$451.60 (40%x $1,129)$395.15 (35% x $1,129)$282.25 (25% x $1,129)$112.90 (10% x $1,129)
Revenue Drop



Over 50%40% 35%25%10%
11% to 50%0.8 x revenue drop0.875 x (revenue drop - 10%) 0.625 x (revenue drop - 10%) 0.25 x (revenue drop - 10%)
0% to 10%0.8 x revenue drop000

CRA has a FAQ page which answers many questions an applicant may have.
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-frequently-asked-questions.html
If you have additional questions, please contact us 905-277-9499.

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