New COVID Program – Do You Qualify?
Here is the snapshot – Have a question? Want to know more? Email us at info@cidbookkeeping.ca or call us at (905) 242 5333
The new program that begins with period 17. Canada Recovery Hiring Program (CRHP). For those of you already applying for the Canada Emergency Wage Subsidy, you will be familiar that there are periods representing approximately four week periods.
Eligibility for both programs is the same as for the Canada Emergency Wage Subsidy
- Had a CRA payroll account on March 15, 2020
- You are an eligible employer
- You experiences the required revenue drops
- Are a CCPC (Canadian Controlled Private Corporation)
- Eligible for the small business deduction
What acronyms do I need to know?
Canada Recovery Hiring Program (CRHP)
Canada Emergency Wage Subsidy (CEWS)
Do I get both?
Unfortunately, not. Do apply for the one that will provide the highest amount.
Do I calculate both?
Calculate both and apply for the subsidy providing the higher amount! That being said, you need to calculate both because you will be required to submit your calculation from the other when you apply. Do not be surprised if your bookkeeper or accountant charges you additional for the additional calculations.
Now what’s the difference?
The difference really comes down to a couple things.
Number One - Claim Periods
Eventually CEWS phases out and you can only apply for CRHP if eligible
Number Two – Subsidy Rate
- The Canada Emergency Wage Subsidy amount varies based on your revenue drop, and there is a top-up amount
- The Canada Recovery Hiring Program is a fixed rate for each period, and there is no top-up amount
*There are a few other differences but the main ones are above.
Looking for additional resources? Check out CRA’s guide
Need a hand?
Call us at (905) 242 5333
Email us at info@cidbookkeeping.ca
Jessica Lantz CPA, CGA