Personal Finance

CEWS and CERB question

  • Last Updated:
  • Jan 20th, 2021 11:28 pm
[OP]
Sr. Member
Dec 19, 2010
905 posts
415 upvotes

CEWS and CERB question

My wife has a small business, corporation status. She is the only full time employee. Her business has been impacted by COVID (events and banquet hall services) and revenue has dropped more than 75% this year. Recovery won’t be until mid 2021.

She has been collecting CERB.

1) Can she at the same time also apply for CEWS up to $1k to remain eligible for CERB (retroactively)? I suspect not as its one or the other but I hear mixed guidance on this.

2) Once CERB is over, can she claim CEWS wage subsidy to pay herself a salary? Right now her business is trying to simply stay afloat with lease payments (no deferral from landlord), and fixed overheads like insurance, etc. Not enough left over to pay herself a salary.

What I’m ultimately not sure is how/if the rules are different given she is an owner operator of a corporation and doesn’t have an arms length relationship between herself as an employer and an employee. Once CERB runs out, can she draw a salary using CEWS while the business conserves cash to pay rent and remain in business?
4 replies
Sr. Member
User avatar
Apr 22, 2014
537 posts
273 upvotes
Edmonton, AB
It's one or the other, she can't claim both.

She may be able to claim CEWS once CERB is over, however, the calculation is quite complex and for non-arm's length employees, you need a pre-crisis amount of earnings. So she had to have paid herself from Jan 1 to March 15 to qualify.
Sr. Member
User avatar
Nov 23, 2014
537 posts
471 upvotes
Toronto, ON
callmebob wrote: My wife has a small business, corporation status. She is the only full time employee. Her business has been impacted by COVID (events and banquet hall services) and revenue has dropped more than 75% this year. Recovery won’t be until mid 2021.

She has been collecting CERB.

1) Can she at the same time also apply for CEWS up to $1k to remain eligible for CERB (retroactively)? I suspect not as its one or the other but I hear mixed guidance on this.

2) Once CERB is over, can she claim CEWS wage subsidy to pay herself a salary? Right now her business is trying to simply stay afloat with lease payments (no deferral from landlord), and fixed overheads like insurance, etc. Not enough left over to pay herself a salary.

What I’m ultimately not sure is how/if the rules are different given she is an owner operator of a corporation and doesn’t have an arms length relationship between herself as an employer and an employee. Once CERB runs out, can she draw a salary using CEWS while the business conserves cash to pay rent and remain in business?
May be she can search for a job and do till market recovers
Anyway she has zero income now and even min wage Jobs will pay more than CERB that she is collecting now !
Newbie
Jan 7, 2021
7 posts
1 upvote
Has there been any changes allowing qualifying people to apply for retroactive CERB payments after the December 2 deadline?
Deal Addict
Jul 12, 2008
4649 posts
1341 upvotes
GTA
SetT62247 wrote: Has there been any changes allowing qualifying people to apply for retroactive CERB payments after the December 2 deadline?
No CERB is closed but the CRB which replaced it is still open.

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