Entrepreneurship & Small Business

Canada Emergency Response Benefit and business wage subsidy

  • Last Updated:
  • Jun 30th, 2020 1:10 pm
Deal Addict
Jul 26, 2004
3307 posts
767 upvotes
Also got the second round of payments on the 22nd... applied on the 18th.
Jr. Member
Nov 23, 2014
115 posts
12 upvotes
East York, ON
If you qualify for period 2, you automatically qualify for period 3, but if you dont qualify for period 3, do you qualify for period 4?
Member
Aug 13, 2003
331 posts
185 upvotes
Calgary
oldspice wrote: If you qualify for period 2, you automatically qualify for period 3, but if you dont qualify for period 3, do you qualify for period 4?
As per the rules on the Canada.ca site, the automatic qualification is only for one subsequent period. For example, if you qualify for period 1, auto period 2, but not auto period 3. If you qualify for period 2, auto period 3, but not auto period 4. After an auto period, you have to qualify again for the subsequent period.
Jr. Member
Nov 23, 2014
115 posts
12 upvotes
East York, ON
What is the deadline date to apply for period 1? does it expire?
Deal Addict
May 22, 2003
4517 posts
1972 upvotes
Vancouver
Stupid question. But for eligibility period March 15 to Apr 11, the revenue for calculation is March 1 to 31, not March 15 to Apr 11, correct?
Banned
May 20, 2020
464 posts
301 upvotes
City of Toronto
oldspice wrote: What is the deadline date to apply for period 1? does it expire?
Wage subsidy applications must be made before October 2020.

26. When can I claim the wage subsidy?
Eligible employers that qualify to claim the wage subsidy will be able to apply to the CRA starting on April 27, 2020.
Applications in respect of a claim period can be made only after the end of the claim period, provided the eligible employer has paid the eligible remuneration that it is claiming for that period.
Additionally, wage subsidy applications must be made before October 2020.

notenoughsleep wrote: Stupid question. But for eligibility period March 15 to Apr 11, the revenue for calculation is March 1 to 31, not March 15 to Apr 11, correct?
Yes

Under the general year-over-year approach, the eligible employer compares its qualifying revenue in the current reference period to that of the same month for 2019. Under this approach, the prior reference period for a claim period is:
  • March 2019 – for the claim period that begins on March 15, 2020 and ends on April 11, 2020;
  • April 2019 – for the claim period that begins on April 12, 2020 and ends on May 9, 2020; and
  • May 2019 – for the claim period that begins on May 10, 2020 and ends on June 6, 2020.
Frequently asked questions - Canada emergency wage subsidy (CEWS)
Sr. Member
User avatar
Jul 25, 2008
963 posts
399 upvotes
Toronto
Need Help in Calculating!!
So I'm calculating everything for my employer's CEWS and TWS application. I think I'm okay with the CEWS part, but its the TWS part I'm confused about. I understand its 10% of renumeration paid during the benefit period. The benefit period does not fall within our pay periods, which is fine, I can easily calculate the renumeration based on their hours worked.
However, I'm confused about the TWS remittance portion. To keep things simple, should we not deduct anything from our remittance and just receive the credit at the end of the year?

Say renumeration is $10 000, would line F (Amount eligible to be claimed under the 10% Temporary Wage Subsidy for Employers be $1000? Thats it, the calculation is that simple? And I am calcuating this based on gross wages right?

Also, we did not lay off any employees, so is line D and E of the CEWS application $0, or is does this mean I need to calculate EI and CPP premiums paid to all employees eligible for the CEWS, regardless if they were laid off or not?
Deal Addict
Jan 21, 2018
2692 posts
2688 upvotes
Vancouver
Didi_beee wrote: Need Help in Calculating!!
So I'm calculating everything for my employer's CEWS and TWS application. I think I'm okay with the CEWS part, but its the TWS part I'm confused about. I understand its 10% of renumeration paid during the benefit period. The benefit period does not fall within our pay periods, which is fine, I can easily calculate the renumeration based on their hours worked.
However, I'm confused about the TWS remittance portion. To keep things simple, should we not deduct anything from our remittance and just receive the credit at the end of the year?

Say renumeration is $10 000, would line F (Amount eligible to be claimed under the 10% Temporary Wage Subsidy for Employers be $1000? Thats it, the calculation is that simple? And I am calcuating this based on gross wages right?

Also, we did not lay off any employees, so is line D and E of the CEWS application $0, or is does this mean I need to calculate EI and CPP premiums paid to all employees eligible for the CEWS, regardless if they were laid off or not?
The TWS amount is “10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee to a maximum of $25,000 total per employer.”

Calculate the amount of TWS that falls in each 4-week CEWS period, and that's what you deduct from that CEWS claim.

You should be reducing your payroll tax paid to the CRA by the amount of TWS, but that's not easy for everyone due to payroll program complications, so you may have to wait until some unspecified time later in the year until the CRA announces an as-yet-unspecified process to claim back the missing TWS. Which of course makes it useless for the intended purpose of short-term crisis assistance.

This is really a silly complication that came about because TWS and CEWS were two separate programs conceived in haste without coordination, and it was hard for the government to change TWS once it had already been approved first by parliament.
Deal Fanatic
Aug 21, 2007
5449 posts
431 upvotes
Markham
Didi_beee wrote: Need Help in Calculating!!
So I'm calculating everything for my employer's CEWS and TWS application. I think I'm okay with the CEWS part, but its the TWS part I'm confused about. I understand its 10% of renumeration paid during the benefit period. The benefit period does not fall within our pay periods, which is fine, I can easily calculate the renumeration based on their hours worked.
However, I'm confused about the TWS remittance portion. To keep things simple, should we not deduct anything from our remittance and just receive the credit at the end of the year?

Say renumeration is $10 000, would line F (Amount eligible to be claimed under the 10% Temporary Wage Subsidy for Employers be $1000? Thats it, the calculation is that simple? And I am calcuating this based on gross wages right?

Also, we did not lay off any employees, so is line D and E of the CEWS application $0, or is does this mean I need to calculate EI and CPP premiums paid to all employees eligible for the CEWS, regardless if they were laid off or not?
Scote64 wrote: The TWS amount is “10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee to a maximum of $25,000 total per employer.”

Calculate the amount of TWS that falls in each 4-week CEWS period, and that's what you deduct from that CEWS claim.

You should be reducing your payroll tax paid to the CRA by the amount of TWS, but that's not easy for everyone due to payroll program complications, so you may have to wait until some unspecified time later in the year until the CRA announces an as-yet-unspecified process to claim back the missing TWS. Which of course makes it useless for the intended purpose of short-term crisis assistance.

This is really a silly complication that came about because TWS and CEWS were two separate programs conceived in haste without coordination, and it was hard for the government to change TWS once it had already been approved first by parliament.
so thre has been a change since the program was ruled out...you could deem your 10% TWS to be 0, such that you receive all subsidy in form of CEWS.

https://www.canada.ca/en/revenue-agency ... s.html#h12
Deal Addict
Jan 21, 2018
2692 posts
2688 upvotes
Vancouver
adeel wrote: so thre has been a change since the program was ruled out...you could deem your 10% TWS to be 0, such that you receive all subsidy in form of CEWS.

https://www.canada.ca/en/revenue-agency ... s.html#h12
"However, if you only want to claim the CEWS for a specific period, you may elect for the 10% Temporary Wage Subsidy for Employers to be equal to a lower percentage of the remuneration you pay, between 0% and 10%, for that period."

WTF! They sneaked in this change recently with no notice??!!! After forcing us to deduct TWS we didn't receive in no uncertain terms previously??? Now I'm extra annoyed!
Deal Fanatic
Aug 21, 2007
5449 posts
431 upvotes
Markham
Scote64 wrote: "However, if you only want to claim the CEWS for a specific period, you may elect for the 10% Temporary Wage Subsidy for Employers to be equal to a lower percentage of the remuneration you pay, between 0% and 10%, for that period."

WTF! They sneaked in this change recently with no notice??!!! After forcing us to deduct TWS we didn't receive in no uncertain terms previously??? Now I'm extra annoyed!
so what i would suggest is reducing one of your payroll remittances to match the total 10% asked to deduct from CEWS that way all square
Deal Addict
Jan 21, 2018
2692 posts
2688 upvotes
Vancouver
adeel wrote: so what i would suggest is reducing one of your payroll remittances to match the total 10% asked to deduct from CEWS that way all square
Gee, I wonder why I didn't think of that? :rolleyes:

The issue is that our payroll service provider does not provide any way to adjust the automatically calculated remittance to the CRT. Payroll systems are complex, and not every provider implemented TWS, nor a method to manually adjust remittance. The only alternative would be to shut off the automatic calculation and remittance and do it manually. That's a lot of work and screws up the year-end reporting from the payroll service. More administrative complication than it's worth.
Newbie
Nov 17, 2018
8 posts
3 upvotes
adeel wrote: so what i would suggest is reducing one of your payroll remittances to match the total 10% asked to deduct from CEWS that way all square
do u think is it ok that for the May CEWS application I just write "0" for the 10% Temporary Wage Subsidy part, and reducing my June payroll remittance with last 2 months' 10% Temporary Wage Subsidy I applied, pay the difference to CRA?
I kind of confusing about those whole thing.
Thank you so much!
Deal Fanatic
Aug 21, 2007
5449 posts
431 upvotes
Markham
Luckymom wrote: do u think is it ok that for the May CEWS application I just write "0" for the 10% Temporary Wage Subsidy part, and reducing my June payroll remittance with last 2 months' 10% Temporary Wage Subsidy I applied, pay the difference to CRA?
I kind of confusing about those whole thing.
Thank you so much!
For May CEWS, you mean the May 10 - June 6?

If you mean May 10 - June 6, yes, that would be ok in my mind, if you havent reduced your remittances already.

Only thing to keep in mind is that the 10% subsidy goes for payroll paid out after March 18...thats a common mistake that i see as they apply it to the entire March payroll.

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