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PROGRAM OVERVIEW

The Canada Emergency Wage Subsidy (CEWS) was recently extended until October 23, 2021. Though there is a potential for further extension, the Canada Recovery Hiring Program (CRHP) may replace it come October.

The CRHP and CEWS are currently both active and running on the same period schedule, but you may only receive subsidy from one program at a time. CRA has built CRHP calculations into the most recent CEWS calculator in order to identify the most beneficial program to claim for the period.

ELIGIBILITY

Most of the eligibility criteria for the CRHP and CEWS are the same, including payroll account requirements and revenue drop thresholds. There are some rules that differ slightly for for-profit corporations and partnerships. Full eligibility criteria can be found here.

Eligibility is based on revenue drop, using the same calculations as CEWS and CERS. For Period 17 (June 6 to July 3, 2021, the first period the CRHP is available), your revenue drop must be greater than 0%. For the following Periods 18-22 (July 4 – November 20), your revenue drop must be greater than 10% to qualify for the CRHP.

Subsidy rates are fixed for all periods and are not dependent on % revenue drop. The subsidy rates are as follows:

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CALCULATIONS

The CRHP is calculated using how much your overall pay (eligible remuneration) to your employees has increased from the time of the base period of March 14 to April 10, 2021, to the time of the claim period. Eligible remuneration amounts are determined using the same criteria as CEWS, and the base period dates are the same as CEWS claim Period 14.

Amounts for employees who were on leave with pay are not included in the CRHP calculation.

We strongly recommend using the CRA’s calculator to determine your subsidy amount. To use the calculator, you’ll need to know the amount you paid to active eligible employees for the claim period and how much you paid active eligible employees in the base period (March 14 to April 10, 2021). The calculator will use the increase in pay from the base period to the claim period to determine your subsidy amount.

 

Thanks to Young Associates for providing this information.

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