Canada Emergency Wage Subsidy Application Process

Posted by on Apr 24, 2020 in Featured | Comments Off on Canada Emergency Wage Subsidy Application Process

The information below was provided by Segal LLP, Chartered Professional Accountants and we are sharing it as a service to our valued members

Beginning on Monday, April 27, applications will be open for the Canada Emergency Wage Subsidy (CEWS). In order to get ready, so that you can file as soon as possible, please take note of the following:

How to Apply

  • Most businesses may apply using My Business Account
  • If you represent a business, you may apply using Represent a Client
  • Alternatively, you may apply with a separate online application form (avail. April 27)

The CEWS will be processed at the payroll program (RP) account level, so you will have to file a separate application for each RP account.

Get ready to apply

  1. Register now for CRA’s My Business Account if you are not already signed up. This will ensure that you can apply as soon as applications open. If you are unable to register for My Business Account, make sure you have an online web access code so you are prepared to use the alternative application.
  2. Make sure your business details and direct deposit information for your payroll accounts (RP) are up to date. This will ensure that any payments to you will be processed quickly and easily.
  3. Before you apply, you will also need to calculate the estimated subsidy for your business.
  4. If you are expecting a payment of more than $25 million, you will have to get your payment through the large value transfer system (LVTS). To do this, you have to be enrolled for direct deposit on your payroll account and be registered for the LVTS. If you are not already set up for LVTS, begin the registration process.

Incorrect or Fraudulent Claims

If you do not meet the Canada Emergency Wage Subsidy eligibility requirements for a period, you will be required to repay any amounts you received for that period.

Penalties may apply in cases of fraudulent claims including fines or even imprisonment.

If you artificially reduce your revenue for the purpose of claiming the wage subsidy you will be required to repay any subsidy amounts you received plus a penalty equal to 25% of the total value.

Keep Your Records

You must keep records demonstrating your reduction in revenues and remuneration paid to employees.