Update on government programs

Canada Emergency Wage Subsidy (CEWS)

  • CEWS has been extended until September 25, 2021. There is an option to extend further to November 20, 2021 based on economic and public health conditions.
  • For the periods beginning July 4, 2021 and later, employers must have experienced a minimum revenue reduction of 10% to qualify for the subsidy.
  • The base percentage will be gradually reduced for the periods from July 4 to September 25, 2021. The maximum base percentage is currently 40% for employers with a deemed revenue reduction of at least 50%. This percentage will be reduced to 35% (July), 25% (August) and 10% (September).
  • The top-up percentage will be gradually reduced for the periods from July 4 to September 25, 2021. The maximum base percentage is currently 35% for employers with a deemed revenue reduction of at least 70%. This percentage will be reduced to 25% (July), 15% (August) and 10% (September).
  • For periods beginning on June 6, 2021, the amount receivable will be the greater of the CEWS amount calculated or the amount available under the CRHP as discussed below. Both subsidies can not be received for the same claim period.
  • Applications for the period from July 4 to July 31, 2021 will open on August 1, 2021.
  • The deadlines to submit the wage subsidy applications for the prior periods are as follows:
    • August 12, 2021 for January 17, 2021 – February 13, 2021;
    • September 9, 2021 for February 14, 2021 – March 13, 2021;
    • October 7, 2021 for March 14, 2021 – April 10, 2021;
    • November 4, 2021 for April 11, 2021 – May 8, 2021;
    • December 2, 2021 for May 9, 2021 – June 5, 2021; and
    • December 30, 2021 for June 6, 2021 – July 3, 2021.

Canada Recovery Hiring Program (CRHP)

  • CRHP is a new program which provides eligible employers with a subsidy of up to 50% of the incremental remuneration paid to employees between June 6, 2021 and November 20, 2021. The subsidy rate will begin at 50% for the periods from June through August, and will gradually reduce to 40% (September), 30% (October) and 20% (November).
  • Eligible employers are largely the same as those that are eligible for CEWS. Eligible for-profit corporations must be either Canadian-Controlled Private Corporations or cooperative corporations that are eligible for the small business deduction.  Partnerships are eligible if at least 50% of the interest in the partnership is held by employers which are eligible for the CRHP.
  • Employers with any revenue reduction are eligible for the period beginning June 6, 2021. For periods beginning July 4, 2021 and later, only employers with a minimum revenue reduction of 10% are eligible.

Canada Emergency Rent Subsidy (CERS) and Lockdown Support

  • CERS has been extended until September 25, 2021, with an option to extend further to November 20, 2021 based on economic and public health conditions. The application periods and deadlines to submit are the same as the CEWS periods discussed above.
  • The maximum subsidy rate remains at 65% for periods ending July 3, 2021 and earlier. The maximum subsidy rate will be gradually reduced for the periods ending July 31 (60%), August 28 (40%), and September 25 (20%).
  • Lockdown Support of 25% has also been extended to September 25, 2021. This top-up subsidy is available for eligible businesses that are required to shut down or are significantly restricted by a public health order, or property owners that earn rental income from a related business that is required to shut down or is significantly restricted by a public health order.

Canada Recovery Benefit (CRB)

  • CRB is available until September 25, 2021. Eligible individuals can apply for a maximum of 25 periods (50 weeks) between September 27, 2020 and September 25, 2021. The periods do not need to be consecutively.
  • Eligible individuals will receive $500/week ($1,000/period) with 10% deducted at source for income taxes until you have applied for 21 periods (42 weeks). After 21 periods, the payments will be reduced to $300/week ($600/period).
  • Eligible individuals applying for their first period after July 18, 2021 will be eligible for a maximum of $300/week ($600/period).

Canada Recovery Caregiving Benefit (CRCB)

  • CRCB is available until September 25, 2021. Eligible individuals can apply for a maximum of 42 weeks between September 27, 2020 and September 25, 2021. Eligible individuals will receive $500/week with 10% deducted at source for income taxes.

These measures are expected to wind down this year if our recovery continues on its current path, so it is important to plan accordingly. Do not hesitate to contact us if you have any questions regarding how any of the above impacts you, your family, or your Company. SRC LLP has a team designated to assist you in navigating the many programs available and completing all applications.

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