You may be eligible for a subsidy to offset some of the wages you pay staff if you are a Canadian employer who has witnessed a loss in revenue due to the COVID-19 outbreak. This subsidy will allow you to rehire employees, prevent more job losses, and assist your company in return to normal operations.
Eligible employers can claim one of the following for each applicable claim period, whichever provides the highest amount:
- Wage Effective: October 24, 2021, to May 7, 2022 Tourism and Hospitality Recovery Program (THRP)
- Wage Effective: October 24, 2021, to May 7, 2022, Hardest-Hit Business Recovery Program (HHBRP)
- Hiring Program for Canada’s Recovery (CRHP)
From June 6, 2021, through May 7, 2022
- Emergency Wage Subsidy in Canada (CEWS)
Starting on March 15, 2020, and ending on October 23, 2021
Many of the THRP and HHBRP’s wage subsidy eligibility and calculation requirements are the same for the CEWS.
What Is the Timeline?
- Next deadline: April 21, 2022: Last day to apply for period 21 (September 26 to October 23, 2021) of the CEWS and CRHP
- Current period: Period 26 (February 13 to March 12, 2022) is the most recently opened period
- The next period opens: on May 1, 2022: The first day to apply for period 27 (March 13 to April 9, 2022)
What Are the Changes Made?
- Changes for claim periods 24 to 26 Updated: March 28, 2022
Access to the subsidies has been broadened to include firms subject to certain capacity-limiting public health restrictions for claim periods 24 to 26 (December 19, 2021, to March 12, 2022).
If you meet the following two qualifications for these two claim periods, you may be eligible for the THRP:
- A qualified public health restriction or a qualifying partial (capacity-limiting) public health restriction was imposed on you.
- You have a revenue drop of at least 25% during the claim period.
- CEWS replaced by THRP and HHBRP:
The Canada Emergency Wage Subsidy (CEWS) was phased out on October 23, 2021, and two new programs were created to replace it. You may continue to apply for claim periods that are still available; however, beyond claim period 21, which expired on October 23, 2021, there are no more CEWS periods. The Canada Recovery Hiring Program (CRHP) will run until May 7, 2022.
- Publicly traded companies and taxable dividends Updated: April 11, 2022
Suppose you are a publicly listed firm or a subsidiary of one. In that case, you are not eligible for a wage subsidy for the claim period. You paid taxable dividends to an individual who owns common shares of the company or a company’s subsidiary for claim period 23 and beyond.
If you need to return all or part of a subsidy you’ve already received, go to Return a Payment for more details.
Who Can Apply?
Criteria for Eligibility
To be eligible for a payor hiring subsidy, you must meet the following requirements:
- Two broad eligibility criteria apply to all subsidies.
- You may only apply for one salary or hiring subsidy each claim period, even if you are qualified for multiple.
Criteria for General Eligibility
To be eligible for a subsidy, you must meet both of these requirements:
- On March 15, 2020, you had a CRA payroll account.
Even if you didn’t have a payroll account on March 15, you might still be eligible if you meet the following criteria:
- another person or partnership made remittances on your behalf
- you purchased all (or almost all) of another person’s or partnership’s business assets
- You are an individual (such as a sole proprietor) or a corporation (or trust) that is not exempt from income tax under Part I of the Income Tax Act.
Additional Requirements for Each Subsidy
You must also meet the qualifying requirements for the subsidy you are applying for.
For claim periods beginning on or after October 24, 2021:
Revenue Drop Requirements
You’ll need to know how much your qualifying revenue has decreased since before the epidemic for each claim period.
What is the definition of qualifying revenue?
You must also know your 12-month average revenue drop for the THRP and HHBRP (22 and later). It is a once-and-for-all computation. The online calculator will compute your claim period revenue drop as part of your subsidy computation. In step 2, there’s a link to a 12-month average revenue drop calculator. Calculate the amount of your wage subsidy online. Using the online calculator will compute your sums using built-in calculations depending on the data you enter. You can read the details on how the revenue drops are determined if you wish to study the formulas.
Verifying your Qualifications
We will work with you to remedy any errors in your application. You can request a revision to your earlier claim if you find you made a mistake in your application. We’ll look over your claim and double-check the facts you provide.
What Are the Periods you can Apply for?
Each claim period is a four-week term that begins on a Sunday.
Subsidies for wages and hiring do not automatically renew. Before you apply for each period, you must ensure that you are eligible and calculate your amount according to the requirements of that time.
For each period, there is a deadline to apply for or raise your claim.
How to Apply?
You must submit a separate application for the CEWS, THRP, or HHBRP for each claim period you are eligible for and for each Payroll (RP) account.
Even if you have many RP accounts, submit just one CRHP application for each claim period you are eligible for.
There are three options for applying:
- The salary subsidy applications can be found in the main menu under Payroll. Learn about the attestation form and application elections.
Click on the link to sign in to the business account: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html
- Represent a Client is a form that business representatives can use to apply.
Only representatives with Level 2 or 3 authorization will be permitted to apply with a completed attestation form.
- If neither of these options is available to you, you can utilize the WebForms application with your web access code for CRHP or CEWS (WAC)
- Webform for CRHP: https://apps.cra-arc.gc.ca/ebci/ghnf/netf/prot/ntrCrhpStndAln.action?request_locale=en_CA
- Webform for THRP: https://apps.cra-arc.gc.ca/ebci/ghnf/netfwg/prot/ntrThrpWgSbsdyStndAln.action?request_locale=en_CA
- Webform for HHBRP: https://apps.cra-arc.gc.ca/ebci/ghnf/netfwg/prot/ntrHhbrpWgSbsdyStndAln.action?request_locale=en_CA
- Webform for CEWS: https://apps.cra-arc.gc.ca/ebci/ghnf/netf/prot/ntrWgSbsdyStndAln.action?request_locale=en_CA
When to Accept your Payment?
Depending on the method of payment, you can anticipate receiving your payment in 3 to 8 days:
If you have already registered for direct deposit, it will take 3 to 5 days.
It will take 3 to 8 days for your cheque to arrive at the location on your payroll account, plus time for delivery by mail.
Payments over $25 Million
You must be registered for direct deposit and the Large Value Transfer System if you expect a payout of more than $25 million (LVTS). Send an email to [email protected] to begin the registration process.