Personal Income Tax

CEWS – How to Apply on April 27

Canada Emergency Wage Subsidy

On Monday April 27, applications for the CEWS open.  There is a pretty good summary of what’s needed here, but we’ll try to walk you through the process.

First and foremost, if you do not yet have access to your CRA My Business Account, register for that ASAP.  That can be done here.  Once you have access, make sure that your direct deposit is set up to speed up the receipt of funds.  Directions on how to set up direct deposit are here

Business owners will be also be able to apply using a separate online application form which will be made available here.  Or if you need assistance, please contact our office and we will do our best to assist you through the Represent a Client portal that we have access to.

Eligible Employers

First, employers will need to confirm that they are eligible.  This is done by demonstrating a drop in revenue of 15% or more for March and 30% or more for April and May.

We had an article on the revenue test which needs to be done in order to determine eligibility.  That article can be found here.

We’re going to try something new to us here… We’ve created a few videos on how to produce the reports needed from Quickbooks Online and Desktop and then how to calculate the change in Excel.  For the Sage users, the information you’ll need is the same and once you’ve pulled that from Sage, you can follow the directions in the “Calculate a decline in revenue for CEWS” video below:

If you find those helpful, please let us know and we’ll try to do more of them!

If you would like us to help confirm your eligibility we will need:

  1. Revenues for:
    1. March 2019
    2. April 2019
    3. May 2019
    4. January 2020
    5. February 2020
    6. March 2020
    7. April and May 2020 once available to reconfirm eligibility
  2. If those do not show a sufficient reduction in revenue, we may also need accounts receivable balances at:
    1. February 28, 2019
    2. March 31, 2019
    3. April 30, 2019
    4. May 31, 2019
    5. December 31, 2019
    6. January 31, 2020
    7. February 29, 2020
    8. March 31, 2020
    9. April 30 and May 31, 2020 once available to reconfirm eligibility

Eligible Employees

Once we’ve confirmed the business is eligible, we must then confirm your eligible employees.

For most, it will be those that are employed in Canada, unless they were unpaid for 14 consecutive days.  If you are rehiring someone who was collecting the CERB, they are now allowed to earn up to $1,000 per month without having the CERB clawed back.  Those who know they will need to repay the CERB can find details on that here.

Calculate Subsidy Amount

This is the hard part now…  Before logging on to apply, you need to know how much you’re applying for, so we are asked to calculate the amount ourselves.  You will need to know:

  • Baseline remuneration
  • Actual remuneration during the period
  • The eligible amount of remuneration during the period

Fortunately, the government has developed a spreadsheet to help with some of these calculations.

Download that spreadsheet here and then move on.

We’ve created a few videos on how to calculate the subsidy for the following pay schedules and types:

Apply for the CEWS

Once you’ve gone through those processes and have the reports to support that the business is eligible, you can go to CRA’s site to actually apply for the subsidy.

We’ve done it and with the report produced from the calculation link above, it seemed pretty straightforward.

One thing to note is that you will be asked to attest that the business qualifies.  We strongly urge caution here.  If there is any doubt as to whether your business qualifies or not, please contact us and we’ll do our best to provide some guidance.

Subscribe & Thanks!

If this newsletter has been forwarded to you and you’re interested in receiving them directly in the future, we invite you to go here and complete the form to be added to our mailing list.

Thanks to everyone for the positive feedback we’ve been receiving on the newsletters!

We hope you’re all staying healthy!

Best regards,

Andrew de Verteuil, CPA, CGA
de Verteuil & Company Inc.

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