COVID-19, CRA & Revenu Québec, Tax News

Canada Emergency Wage Subsidy (CEWS) Application Process

The application process for CEWS has now opened (April 27, 2020).  Applying for this subsidy does require a fair amount of information, so the preparation process will take a bit of time to ensure you have all of the correct and accurate information.  To check out our blog on the current information on CEWS, up to application process, click HERE.

To get started:

  • Go to the CEWS information page HERE, and follow the initial steps to ensure eligibility,
  • Familiarize yourself with the CEWS application guide for detailed instructions,
  • Complete the calculation section, as you need these numbers for the application,
  • There are some things to keep aware of, based on an initial review of the process:
    • Download the CRA Calculation spreadsheet when you are ready as the CRA has updated it since the first release, and may update again before you are ready to file
    • Be aware of your pay period dates. Your pay periods might not match exactly to the application claim period, so make sure the information you are providing for your payroll falls within the reporting claim periods the CRA is asking for
    • You will need your Temporary Wage Subsidy (TWS) calculations; even if you have yet to reduce your source remittances they take this information into account (more details in the CEWS calculation section on the CRA site)
    • Be mindful of the compliance requirements as negligence could result in steep penalties for the employer, or a third-party, such as an accountant or tax preparer, that completes the application on behalf of the employer
  • Print off the total wage subsidy form generated and determine how you will be applying; there are 3 options:
    • CRA My Business Account (for the employer)
    • CRA Represent a Client (for accounting professionals applying on behalf of an employer)
    • Web Forms application for those employers unable to set up a CRA My Business Account (also requires a Web Access Code and your CRA RP account number)

 

The Application Process:

Now that you’ve done your due diligence and you (or your representative) are ready with your numbers, here’s a look into what you might see through your CRA My Business account.

Once you log in, you will then find the access in your payroll section, in the RP menu:

From there, you’ll have 3 steps:

What happens after application?

According to the CRA, you can expect your payment within ten (10) business days, if your application is approved, provided you are registered for direct deposit with the CRA (if you are not, set it up now to avoid delays).

Important Notes for those employers that are rehiring employees!  You may be able to rehire, retroactively, and use this subsidy program to assist you in paying those retroactive wages.  If an employer is successful in receiving the CEWS, this means that the employee may not be able to receive CERB for the same period.  The CRA is encouraging employers to advise their employees that if there was an overlap, CERB for the employee and CEWS for the employer, for the same claim period, that the employee may be required to repay all or part of their CERB payments.

 

For more details on income support and other benefits as part of the Federal Government’s Economic Response Plan for COVID-19, click here.

See also our COVID-19: Tax Info Centre, from our TurboTax Support team, answering many FAQs on this topic and more.