The attached infographic is designed to assist employers in determining and calculating the applicable CEWS rates for each qualifying period.
In addition, for Periods 8, 9 and 10, the calculation of the base subsidy rate and the top-up rate will be harmonized. Instead of using the current three-month revenue decline test for the top-up subsidy, both rates will now be calculated using the change in the employer’s monthly revenues, year-over-year, or, where the alternative method has been elected, the average January/February 2020 revenues. There is a “safe harbour” rule for Periods 8, 9 and 10, so that eligible employers will still be able to calculate their top-up wage subsidy using the three-month revenue decline test should that provide a higher rate.
- One month revenue decrease in current or previous month, or
- Three-month average revenue drop.
- the amount of eligible remuneration paid in respect of the week; and
- the greater of:
- $500, and
- 55 per cent of pre-crisis remuneration for the employee, up to a maximum subsidy amount of $573.
New Baseline Remuneration Calculation for Employees Returning from Leave
Due Date for Claims
- January 31, 2021, or
- 180 days after the end of the period.
How Can Crowe Soberman Support You?
In these uncertain times, it is essential to remain agile and proactive as the COVID-19 situation unfolds. Having timely access to financial experts, insights and news as quickly as possible is critical—and that’s where we can help.
We have established a dedicated COVID-19 Resource Hub, highlighting areas of business operations that will likely be impacted by coronavirus. Whether you need to discuss your current financial situation and learn what options are available to you, or you want to be guided through the appropriate cash flow management strategies for your business, our team of experts are ready to help you at every step of the way. Please do not hesitate to reach out to your Crowe Soberman professionals for support during these challenging times.
We are in this together.
This article has been prepared for the general information of our clients. Please note that this publication should not be considered a substitute for personalized advice related to your situation.