Is the CEWS taxable?
I've never received a subsidy before, I assume it's considered taxable income?
Entrepreneurship & Small Business
May 11th, 2020 11:41 pm
May 12th, 2020 7:14 am
May 12th, 2020 11:53 am
May 12th, 2020 12:15 pm
May 12th, 2020 1:28 pm
May 12th, 2020 1:45 pm
May 14th, 2020 12:58 pm
The wage subsidy income you receive is completely cancelled out by the wage you pay out (wage expense) so in the end the taxes is not a small amount, there is no tax at all.
May 14th, 2020 1:19 pm
This is correct, but for me it's just a different way of looking at things.
May 14th, 2020 3:33 pm
May 24th, 2020 4:15 pm
Now that the CEWS has been extended for 3 more months I have a second question. If the CEWS is to be reported as revenue, is it to be included when determining if the business has a 30% drop in revenue, when qualifying for subsequent periods?CensoredByRFD wrote: ↑ I think what you meant to ask is: “is the CEWS subsidy counted (reported) as business revenue.”
And the answer is yes.
May 24th, 2020 4:58 pm
I read that they will compare your May 2019 vs May 2020, June 2019 vs June 2020, and so on, if indeed you revenue by 30% or 70% then you will qualify for subsequent period.
May 24th, 2020 6:41 pm
This is correct. But do you include any wage subsidy that you've received from the previous month when calculating the 30% revenue drop?
May 24th, 2020 9:12 pm
May 24th, 2020 9:17 pm
No, since it is not a revenue from the business.Pronoia wrote: ↑ This is correct. But do you include any wage subsidy that you've received from the previous month when calculating the 30% revenue drop?
Example, lets' say I qualified for the May/June wage subsidy because my May revenue was down 30% from the previous year and I receive $70,000. Do I include this $70,000 in my June 2020 revenue when I'm trying to qualify form the June/July wage subsidy?
May 24th, 2020 9:33 pm
CEWS is not included when you perform your revenue reduction test.
May 24th, 2020 9:48 pm
Great. Thank you.Nukey wrote: ↑ CEWS is not included when you perform your revenue reduction test.
Take a look at the following URL, which has frequently asked questions:
https://www.canada.ca/en/revenue-agency ... tions.html