News & Insights

Tax Alert | Canada Emergency Wage Subsidy Deadline Approaching

Tax Development Jan 15, 2021

The Canada Emergency Wage Subsidy (CEWS) is an essential relief initiative introduced by the Government of Canada in response to the COVID-19 pandemic. In place since last March, the CEWS program allows qualifying organizations to claim a subsidy of up to 75% of eligible remuneration paid to employees, with a maximum of $847 per employee per week. There is no limit on the number of qualifying employees per entity, so organizations of all sizes can benefit from the subsidy. 

To qualify for the CEWS, an organization with operations in Canada must have experienced a decline in revenue for an eligible claim period. A minimum revenue reduction of 15% is required for the first claim period, and a 30% drop is needed for periods two through four. However, no minimum revenue reduction is required for periods five and beyond. For the latter claim periods, in general, the greater the decline in revenue, the larger the potential subsidy.       

The CEWS eligible claim periods are specified by statute between March 15, 2020 (the start date for the program) and June 30, 2021 (the program’s anticipated end date). To obtain the subsidy for a qualifying period, an eligible entity must file an application for that period in the prescribed form and manner on or before the later of January 31, 2021 and 180 days after the end of the period. As a result, an important CEWS deadline is rapidly approaching.

The deadline to submit a claim for any of the first five eligible periods is January 31, 2021.

Qualifying organizations are advised to ensure that all CEWS applications are filed correctly by the deadline. 

Many organizations have encountered various difficulties in preparing CEWS claims, such as determining eligibility, identifying the latest program requirements, and calculating the eligible remuneration and subsidy claim amounts for each period.     

More Information

Ryan can help your organization determine if it qualifies for the CEWS and ensure that any previously submitted claims have been filed correctly and maximized. There is no cost to your organization if it does not qualify or no additional subsidy is identified.

To learn more, please reach out to your Ryan representative or one of the practice leaders listed below.

 David Douglas
 Principal, Scientific Research and Experimental Development
 905.567.7926 Ext. 36-5410
 Clyde Seymour
 Principal, International Income Tax Consulting
 905.567.7926 Ext. 36-5315