Update on COVID Subsidies
New CEWS upcoming for periods 17 – 22 and CERS for periods 10 – 15 brings a number of changes to the current program. This will bring the subsidy programs up to the period ending November 20, 2021 (Period 22 for CEWS and Period 15 for CERS).
A number of changes was made from Government of Canada for the CEWS program including a change in the maximum dollar amounts to be claimed for each eligible employee as well as the percentage of the claims. For an in-depth review of the changes, please consult your HGA advisor.
Similar to the changes made to CEWS, the CERS program will also see a change from its current program with the intention of focusing on the heavily impacted industries and lowering the base amounts to reduce reliance on the subsidy program by the end of 2022. Please reach out to your HGA advisor for more details.
With the changes in both the CEWS and CERS programs, the Government of Canada’s intention is to have the companies adjust back to no longer relying on the subsidy program. Though, those who are still heavily affected, will be benefiting from the top-up portions in the calculations of both CEWS and CERS. The Government of Canada also understands with the ease and drop of the CEWS and CERS programs, affected employers will also need some additional funding to help with the eventual return to normalcy. As a result, they have introduced a new subsidy program called the Canada Recovery Hiring Program, or CRHP for short.
This is a subsidy that works in conjunction with the CEWS and will provide up to 50% of the incremental wages paid by eligible employers between June 6 to November 20, 2021 so long as the eligible employer meets the criteria of the new program.
- The program is meant to help with qualifying recovering entities for the qualifying periods to hire more employees to help with their businesses to encourage growth and return to normal operations.
- The calculation is based on the drop in revenue and the total incremental wages paid for the qualifying period against the baseline wages paid from March 14, 2021 to April 10, 2021.
- The program will back date to June 6, 2021 and will be available until the November 20, 2021 claim similar to the CEWS and CERS extension periods.
- Please stay tuned for details as more information gets released about the CRHP program.
As always, feel free to contact your HGA advisor for more details.