Entrepreneurship & Small Business

Canada Emergency Response Benefit and business wage subsidy

  • Last Updated:
  • Jul 14th, 2020 6:53 pm
Newbie
Feb 25, 2009
33 posts
North York
Hello, hoping that you can assist or direct me to finding answers to some of my questions and concerns.

I have been laid off from my job since October of 2019. However, I have been able to pick up many shifts since I was laid off from October to March 15th when my place of employment shut down due to Coronavirus. I have been reporting those earnings to EI and EI have been adjusting my payout. My employer applied for and qualified for The CEWS and I have been receiving income from them. I have just been reporting this income to EI as normal and they have been adjusting my EI payout. Is this ok? Am I going about this properly?

Would any or all of the combined earnings that an employee receives from the CEWS (75%) and my employer (25%) count towards Insurable earnings and/or Insurable Hours?

Being that the CEWS is retroactive to March 15th, would/should this than mean that any vacation or portion that has been used by my employer would/should be replaced since the subsidy is retroactive to March 15th? Is the company not double dipping if they do not replace some or all of that?

The Baseline remuneration for Calculating CEWS
When calculating the wage subsidy, you will need to determine an employee's baseline remuneration. Baseline remuneration is considered to be the average weekly eligible remuneration paid to an employee during the period of January 1, 2020, to March 15, 2020. However, you may exclude from your calculation any period of seven or more consecutive days in respect of which the employee was not paid.

My employer for some reason calculated my baseline renumeration on the average of 6 weeks prior to the shutdown even though I had NO periods of seven or more consecutive days in respect of which I was NOT paid. Had they used the full period of January 1, 2020, to March 15, 2020 my baseline renumeration would have been more.
Deal Addict
Dec 13, 2007
1586 posts
79 upvotes
Toronto
You should not be concerned with CEWS. As far as you are concerned you are receiving normal salary/wages and any accompanying pay stubs and deductions are (or rather should be) exactly the same as before. If you see something off, then you should bring that up, but again, CEWS is irrelevant to you.
Would any or all of the combined earnings that an employee receives from the CEWS (75%) and my employer (25%) count towards Insurable earnings and/or Insurable Hours?
100%
Newbie
May 20, 2019
10 posts
3 upvotes
Our company went on an 20% work cut on March 23. Applied for workshare same day. Went on 60% cut until now. Workshare only got approved to start on April 26. They applied for CEWS and qualified. So company got reimbursed max $847 per employee for the first 2 weeks of the claim period and got 100% of our 40% for the other 2 weeks. Does our company have obligation to top up our pay to $847 for the weeks we only got 40% pay or are they obligated to get us to 75% of our pre-covid19 salaries or they are not obligated at all to retractively pay us for those weeks we lost pay and not on workshare?
Deal Expert
Mar 23, 2009
17809 posts
4390 upvotes
Toronto
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
Hmmm... If they had done this in the first place, the CRA agent wouldn't have incorrectly amended my application (for an incorrect TWS amount), causing the wrong amount to be sent to my corp in period 2. Oh well. I guess the good news is it's less likely they will make the same mistake for period 3.

BTW, I wonder when they will give us the details for periods 4-6.
Deal Fanatic
Aug 21, 2007
5462 posts
436 upvotes
Markham
EugW wrote: Hmmm... If they had done this in the first place, the CRA agent wouldn't have incorrectly amended my application (for an incorrect TWS amount), causing the wrong amount to be sent to my corp in period 2. Oh well. I guess the good news is it's less likely they will make the same mistake for period 3.

BTW, I wonder when they will give us the details for periods 4-6.
i think those details have yet to be confirmed..wouldn't be surprised if the 30% threshold is loosended somewhat, as they look to shift companies/folks from CERB to CEWS
Jr. Member
Apr 2, 2020
141 posts
46 upvotes
adeel wrote: i think those details have yet to be confirmed..wouldn't be surprised if the 30% threshold is loosended somewhat, as they look to shift companies/folks from CERB to CEWS
Hopefully. Sounds like they are waiting to see how many apply for this last period. Should know next week.
Deal Addict
Jan 21, 2018
2765 posts
2774 upvotes
Vancouver
adeel wrote: i think those details have yet to be confirmed..wouldn't be surprised if the 30% threshold is loosended somewhat, as they look to shift companies/folks from CERB to CEWS
Hard to say. They announced that they are spending less on the program than expected, possibly because many small businesses closed up shop entirely and aren't paying employees at all.

The under-spending could cause the government to think that they have extra money in the program to extend it - or it could cause them to think that the program didn't work as well as hoped and end it as planned. Personally I think that the program has been effective in saving small business, and I hope they decide to extend it.
Deal Fanatic
Aug 21, 2007
5462 posts
436 upvotes
Markham
Scote64 wrote: Hard to say. They announced that they are spending less on the program than expected, possibly because many small businesses closed up shop entirely and aren't paying employees at all.

The under-spending could cause the government to think that they have extra money in the program to extend it - or it could cause them to think that the program didn't work as well as hoped and end it as planned. Personally I think that the program has been effective in saving small business, and I hope they decide to extend it.
you mean extend beyond august? because theyve alredy announced that and it would be a big negative to retract.

i anticipate that cerb will be tightened and cews loosened
Newbie
Nov 17, 2018
8 posts
3 upvotes
Does anyone claim the May CEWS yet? any difference than the last two claims.
Deal Addict
Jan 21, 2018
2765 posts
2774 upvotes
Vancouver
Luckymom wrote: Does anyone claim the May CEWS yet? any difference than the last two claims.
Claims for period 3 can start tomorrow, June 10.
Sr. Member
Dec 17, 2009
548 posts
497 upvotes
Toronto
xcell wrote: Did you ever get this answered? I heard you can have CERB or CEWS but not both but if your employee is making less than $1000 in that 4 week period and does not have 14 consecutive days of nonemployment -- in theory they are eligible.

Anyone doing this?
They can take both if they qualify for both.

https://www.canada.ca/en/revenue-agency ... s.html#q14

Under 15

15. Can an eligible employer claim the wage subsidy in respect of an eligible employee who has received payments under the CERB?
Yes, in certain situations, an eligible employer may be eligible to claim the wage subsidy in respect of an eligible employee who has received payments under the CERB program. However, as explained above (see Q13), where an individual has not been paid any remuneration from the eligible employer in respect of a period of 14 or more consecutive days in a claim period, the individual will not qualify as an eligible employee for that period of employment. Therefore, the eligible employer will not be eligible for the wage subsidy in respect of that employee for that claim period.
Deal Expert
Mar 23, 2009
17809 posts
4390 upvotes
Toronto
The May 10 to June 6 application is now up.

What this always there in the application? Do I answer yes? (My revenue qualifies.)

Screen Shot 2020-06-10 at 10.24.22 AM.png

I can't seem to find 125.7(4). I assume it's just the calculation on this page but it doesn't have any paragraph numbering listed, and I don't understand what the question means exactly.

EugW wrote: I called CRA's business dept and told them of the CEWS situation. They told me an agent had reviewed my second period's application, decided it was incorrect, and amended it to match my first period's application. I explained my reasoning for my second application further (similar to my post #327 above), and after investigating, the phone agent agreed with me that my calculations and application for the second period were actually correct in the first place. So, he put in a request for a supplemental CEWS payment for that second period.

The agents haven't been provided with a time frame for these supplemental payments, so I have no idea when to expect the supplemental payment, but at least it's now recorded on my account.
Until now, my corp has not yet received any supplemental payment for the April 12 to May 9 period, and when I check online, it just says reassessed with the incorrect amount the incorrect reassessment calculated. There is no indication that it was reassessed again for another supplemental payment. I will wait a few more weeks and if nothing happens, I'll back again.
Deal Addict
May 16, 2005
2815 posts
197 upvotes
EugW wrote: The May 10 to June 6 application is now up.

What this always there in the application? Do I answer yes? (My revenue qualifies.)


Screen Shot 2020-06-10 at 10.24.22 AM.png


I can't seem to find 125.7(4). I assume it's just the calculation on this page but it doesn't have any paragraph numbering listed, and I don't understand what the question means exactly.


Don't remember that question was there before? Any interpretation of what it means?

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