Canadian Emergency Wage Subsidy (75% subsidy)
Recently, the Federal government passed the Canadian Emergency Wage Subsidy in the House of Commons. The new Canada Emergency Wage Subsidy (CEWS) provides a 75% wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.
The CEWS is intended to prevent further job losses and to encourage employers to re-hire workers previously laid off as a result of COVID-19, and help better position Canadian companies and other employers to more easily resume normal operations following the crisis.
Eligible employers includes:
- Taxable corporations
- Partnerships consisting of eligible employers, non‑profit organizations and registered charities.
- Employers who have seen a drop of at least 15% of their revenue in March 2020 and 30% for the following months
Public bodies are not eligible for this subsidy. Public bodies generally include municipalities and local governments, Crown corporations, wholly owned municipal corporations, public universities, colleges, schools and hospitals.
Receiving your Subsidy
Subsidy payments will be administered through your My CRA business account. Knit will not be administering the CEWS, only the 10% remittance reduction (that was released in March) is administered by Knit.
Interaction with the 10% Wage subsidy
On March 25, 2020, the COVID-19 Emergency Response Act, which included the implementation of a temporary 10% subsidy. For employers that are eligible for both the CEWS and the 10% wage subsidy for a period, any benefit from the 10% wage subsidy for remuneration paid in a specific period generally reduces the amount available to be claimed under the CEWS in that same period. Please note that the 10% Wage subsidy tax setting is irreversible and cannot be removed from your profile.
Available Refunds for Certain Payroll Contributions
The Canadian government expanded the CEWS by introducing a 100% refund for certain employer-paid contributions to Employment Insurance and the Canada Pension Plan. These refunds will not be administered through Knit. Please refer to this Page on Service Canada's Website for more information.