You may have heard the news: the Federal Government has declared the end of the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS). It is important to note that your claims were not due on October 23. For instance, the claim periods ending on May 8, 2021 are due on November 4, 2021 and the October 23 claim will not be due until April 22, 2022.
The Federal Government has also announced two new subsidy programs to take the place of CERS and CEWS, which started yesterday, to target the hardest-hit businesses and those in the tourism and hospitality business. The Hardest Hit Business Recovery Program (HHRP) will allow businesses that are experiencing heavy revenue losses to receive a wage and rent subsidy rate of up to 50%. The Tourism and Hospitality Recovery Program (THRP) will provide a wage and rent subsidy rate of up to 75% for hotels, restaurants, and other tourism or hospitality businesses.
To be eligible for either program, businesses will need to show a 12-month decline in sales during the pandemic*, as well as a decline in revenue within the month of application. Keeping up-to-date bookkeeping records is critical to ensuring that your business will be eligible for subsidy claims!
Businesses that are facing local lockdown measures will be able to receive the maximum claims on their wage and rental subsidy programs regardless of losses over the pandemic.
Canada Recovery Benefit and Canada Recovery Sickness Benefit will also remain in effect until May 7, 2022 and will extend the total benefits from 42 weeks to 44 weeks
Canada Worker Lockdown Benefit will also be introduced where eligible employees will be able to have $300/week in income support should you not be able to work due to a local lockdown. This will be in effect from October 24, 2021 to May 7, 2022.
As always, if you have any questions, please contact your HGA Advisor.
*Subject to Federal Government Confirmation