OTTAWA, April 27, 2020 /CNW Telbec/ - To help employers keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic, the Government has implemented the Canada Emergency Wage Subsidy (CEWS). This important economic measure provides a subsidy of 75% of an eligible employee's weekly earnings, to a maximum of $847 per employee per week, to eligible employers, for up to 12 weeks. Retroactive to March 15, 2020, the CEWS will prevent further job losses and encourage employers to re-hire workers previously laid off as a result of COVID-19. The Canada Revenue Agency (CRA) is administering the CEWS on behalf of the Government.
Today, the Honourable Diane Lebouthillier, Minister of National Revenue, launched the application process for the CEWS. As of today, employers can apply for the CEWS through My Business Account or through the CRA's online application portal, and their representatives can apply through Represent a Client.
All claims that are approved through the CRA's automated verification process will be sent for payment on May 5, so that payments being made through direct deposit should begin to appear in employers' accounts as of May 7. Some applications will require a secondary verification, done manually, and in these cases the CRA may contact employers to verify information. It is expected that these secondary verifications will take no more than 72 hours in the vast majority of cases.
The CRA has again partnered with financial institutions to enroll Canadian employers for direct deposit, and employers can now register business payroll accounts for direct deposit with the CRA through their bank portals.
Signing up for direct deposit will enable employers whose applications are approved to receive their CEWS payments quickly and securely. Employers can sign up for direct deposit with their financial institutions even after applying for the CEWS.
The CRA recognizes and appreciates the important role that stakeholder organizations are playing in providing feedback on how the CEWS program will operate. We look forward to continuing to work closely with employers and their representative organizations as we deliver the CEWS program.
Quotes
"We are living in unprecedented times and CRA public servants have shown incredible dedication in delivering our government's economic measures to see us through this crisis. We successfully delivered the Canada Emergency Response Benefit and are well-equipped to continue this important work for Canadian businesses. This $73 billion benefit will put Canadians back on the payroll and help our economy stabilize as we continue our fight against COVID-19 and look forward to our economic recovery from the crisis."
The Honourable Diane Lebouthillier, Minister of National Revenue
Quick Facts
- The CRA delivers benefits payments to millions of Canadians and business owners every year; this is at the core of our business.
- To ensure that the CRA can provide efficient service to employers as we deliver this critical measure, we have dedicated significant resources including thousands of CRA employees across Canada who will be implementing the CEWS program.
Related Products or Associated Links
Backgrounder
CEWS FAQs
CEWS Online application portal
CRA's Canada Emergency Wage Subsidy Calculator
My Business Account
Direct Deposit
Infographics
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BACKGROUNDER
To help employers through the challenges posed by the COVID-19 pandemic, the Government has implemented the new Canada Emergency Wage Subsidy (CEWS). The CEWS aims to prevent further job losses, encourage employers to re-hire workers who were laid off as a result of COVID-19, and help position businesses to resume normal operations more easily following the crisis.
The CEWS allows eligible employers to rehire workers who were laid-off due to COVID-19, retroactive to March 15, 2020. The CEWS application process is now open.
Applying for the CEWS
To provide more information and resources for employers and their representatives, the CEWS web page has been expanded to include an application guide, the CEWS attestation, and a Frequently Asked Questions (FAQs) section that will be updated regularly.
The easiest way to apply for the CEWS is through My Business Account or Represent a Client.
The CRA will collect applications throughout this week, and we will use this time to optimize the parameters of our automated verification system based on information we gather through the applications we receive. This will allow us to process all of the applications we've received through our automated verification system on May 4. As such, employers can apply at a time that's convenient for them during this week.
Employers who have taken advantage of the CEWS calculator function will be able to use the printable statement feature to enter required information into their application, submitting their claim quickly and easily.
Beginning April 27, 2020, certain financial institutions will offer CRA direct deposit online enrolment for business payroll accounts through their websites, helping businesses get their payments quickly and securely. Employers can sign up for direct deposit with their financial institutions even after applying for the CEWS. We recommend that employers register by May 3 in order to receive their first CEWS payment through direct deposit. Visit Canada.ca/cra-direct- deposit or your financial institution's website for more information.
If employers are not registered for direct deposit, they should allow additional time for their cheque to be delivered by mail to the address on their payroll account (RP).
Employers that are severely affected by the crisis and who make best efforts to demonstrate that they meet the eligibility requirements should expect that the CRA will accept their applications and representations. However, as is the case with other tax measures, CEWS claims will be subject to verification by the CRA. To this end, the CRA may telephone businesses to validate information.
10% Temporary Wage Subsidy for Employers
The 10% Temporary Wage Subsidy for Employers reduces the amount of income tax source deductions that employers have to remit to CRA on behalf of their employees by up to 10% of their remuneration (to a maximum of $1,375 per employee up to $25,000 per employer). Many employers that qualify for the CEWS also qualify for the 10% Temporary Wage Subsidy for Employers.
CEWS and the 10% Temporary Wage Subsidy for Employers are intended to provide total support of up to 75% for payroll, not 75% + 10%. If you did not reduce the source deductions you remitted to the CRA, but you were entitled to the 10% Temporary Wage Subsidy for Employers, the CRA will treat you as having over-remitted your employee source deductions (so that normally you will be entitled to a refund).
Additional information is available in the CEWS Application Guide.
For more information
For more information on the CEWS, please visit our CEWS portal including detailed FAQs about the subsidy and the application process. In addition, we have created infographics to explain eligibility and how to use the CEWS calculator.
Canadians who would like to obtain information by phone can call the dedicated CEWS number at 1-833-966-2099. This line offers access to agents who can provide information about eligibility requirements, calculating the CEWS, or how to apply. The line is operational from Monday to Friday, from 9:00 a.m. until 9:00 p.m. local time.
To learn more about what CRA is doing, go to Helping Canadians with the economic impact of the COVID-19 Pandemic
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SOURCE Canada Revenue Agency
Jeremy Bellefeuille, Press Secretary, Office of the Minister of National Revenue, 343-551-0898; Media Relations, Canada Revenue Agency, 613-948-8366, [email protected]
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