STEP-BY-STEP GUIDE: APPLY FOR THE CANADA EMERGENCY WAGE SUBSIDY (CEWS)
The Canada Revenue Agency is now accepting applications for the Canada Emergency Wage Subsidy. CEWS claims will be subject to verification by the CRA, therefore the CRA will begin to release funds for approved applications on May 5.
- Sign up for My Business Account or Represent a Client– Employers will be able to apply through these portals. You can watch this video for instructions on registering for My Business Account.
- Register for Direct Deposit for your payroll account (RP) – Employers who are not registered for direct deposit will receive their CEWS payment by cheque and additional time will be required for mail delivery.
- Calculate your CEWS eligibility– The CEWS webpage includes a calculator function that guides employers through a step-by-step calculation of the CEWS and enables employers to determine the subsidy amount they can expect to claim based on the information that they enter into the calculator.
- If you are expecting a payment of $25 million or more, you will have to get your payment through the large value transfer system (LVTS). To do this, you have to be enrolled in direct deposit on your payroll account and be registered for the LVTS. If you are not already set up for LVTS, begin the registration process.
- Apply for the CEWS now – Applications are available through My Business Account, Represent a Client, and through the CRA’s web form(with your web access code).
If you need more information on how to apply, please visit this page.
To help employers keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic, the Government is implementing the Canada Emergency Wage Subsidy (CEWS). This important economic measure provides up to $847 per employee per week, to eligible employers, for up to 12 weeks, preventing further job losses and encouraging employers to re-hire workers previously laid off as a result of COVID-19, retroactive to March 15, 2020.
Eligible employers include individuals (including trusts), taxable corporations, registered charities, non-profit organizations and partnerships consisting of eligible employers.
FAQ: Canada Emergency Wage Subsidy (CEWS)
The Canada Revenue Agency has published a helpful FAQ document intended to provide more in-depth technical information on the most commonly anticipated technical questions from businesses and tax professionals.