Area of Law: Coronavirus COVID-19
Answer # 7250
Canada Emergency Wage Subsidy (CEWS)Region: Ontario Answer # 7250
The Canada Emergency Wage Subsidy (CEWS) is a Federal Government program to help businesses experiencing financial hardship during the pandemic.
Amount of subsidy
The subsidy amount for each eligible employee (on eligible wages paid) depends on the claim period (see below).
The benefit is available to both large and small businesses. Eligible employers include:
- individuals / sole proprietors,
- taxable corporations,
- partnerships consisting of eligible employers,
- non‑profit organizations, and
- registered charities.
Public bodies, such as governments and publicly funded organizations, such as public universities, colleges, schools and hospitals are not eligible for this subsidy.
As per the Government of Canada,
“An eligible employee is an individual employed in Canada by you (the eligible employer) during the claim period, except if there was a period of 14 or more consecutive days in that period in respect of which they were not paid eligible remuneration by you.”
- Claim period 1: March 15, 2020 – April 11, 2020
- Claim period 2: April 12, 2020 – May 9, 2020
- Claim period 3: May 10, 2020 – June 6, 2020
- Claim period 4: June 7, 2020 – July 4, 2020
- Claim period 5: July 5, 2020 – August 1, 2020
- Claim period 6: August 2, 2020 – August 29, 2020
- Claim period 7: August 30, 2020 – September 26, 2020
- Claim period 8: September 27, 2020 – October 24, 2020
- Claim period 9: October 25, 2020 – November 21, 2020
How to apply
Employers can apply for the CEWS through Canada Revenue Agency’s in three ways:
1. Most businesses may apply online using the My Business Account portal.
2. Business representatives may apply online using the Represent a Client option.
3. Through a web-based application.
Employers have to keep records showing the reduction in revenues and wages paid to employees.
Employers will be required to repay amounts paid under the Canada Emergency Wage Subsidy if they do not meet the eligibility requirements.
Penalties, which may include both fines and imprisonment, may apply in cases of fraudulent claims.
For detailed information and up-to-date changes regarding CEWS, visit canada.ca.
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