• Last Updated:
  • Nov 20th, 2020 1:43 pm
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[OP]
Newbie
Jun 14, 2020
47 posts
9 upvotes
Toronto

CEWS calculation changes

Hi, does anyone know if the CEWS calculation has changed over the past month? Looks like the Base Rate calculation has been revised downward between September and October, is that true?
Many thanks!
4 replies
Jr. Member
Apr 2, 2020
197 posts
82 upvotes
The "new" CEWS has been frozen at 0.8 times the amount of revenue loss. This will be in place until December 19, 2020 but CEWS will continue until June 2021.

It still needs to be passed by the house and senate. Hopefully we will be able to apply for it later this month.
Deal Addict
Jan 21, 2018
4687 posts
4764 upvotes
Vancouver
Period 8 (to Oct. 26) is now open for claims, but the spreadsheet calculator hasn't changed since last month. Announced future changes are still pending passage of the bill into law. I wonder if there's any advantage in holding off claiming for period 8?

For Period 7: "The base CEWS rate in period 7 is your revenue drop x1 to a maximum of 50%."

For Period 8: "The base CEWS rate in period 8 is your revenue drop x0.8 to a maximum of 40%."
Deal Fanatic
Aug 21, 2007
5653 posts
591 upvotes
Markham
Scote64 wrote: Period 8 (to Oct. 26) is now open for claims, but the spreadsheet calculator hasn't changed since last month. Announced future changes are still pending passage of the bill into law. I wonder if there's any advantage in holding off claiming for period 8?

For Period 7: "The base CEWS rate in period 7 is your revenue drop x1 to a maximum of 50%."

For Period 8: "The base CEWS rate in period 8 is your revenue drop x0.8 to a maximum of 40%."
CRA has stated you can file now and amend once legislation is approved...i personally am not following that course of action but it is an optiom
Deal Addict
Jan 21, 2018
4687 posts
4764 upvotes
Vancouver
Yes, I see on the CRA claims page:

"The government has announced proposed changes to CEWS period 8 that may give you a higher rate based on your revenue drop. You can apply now and change your claim if the new rules are approved."

The link to the description of the changes is here: https://www.canada.ca/en/department-fin ... nsion.html

The current base rate as of October would be maintained instead of dropping, and the additional benefit could be based on current month's decline instead of previous 3 month average. The max base rate is still 40%, and the max with additional benefit is still 65%. CEWS may be extended until June next year, but no details on how things might be modified.

There is no word on when the new rules might be approved.

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