COVID-19 Tax Update: CEWS Application Process Announced

As we have addressed in previous Tax Alerts and our detailed blog post (found here), the Canada Emergency Wage Subsidy (CEWS) was enacted on April 11, 2020.  On April 21, the federal government announced further details on how employers can apply for the subsidy. This link also includes CRA guidance to help employers determine whether they qualify for the CEWS, as well as a calculator for employers to determine the amount of the subsidy to claim.

Beginning on April 27, 2020, employers will be able to apply for the CEWS online, through either their CRA My Business portal or through a separate online application form which has yet to be released.  A separate application will need to be made for each payroll account (RP) of the employer. Employers who expect to receive CEWS payments in excess of $25 million also need to be registered on the Large Value Transfer System (LVTS).

Employers may wish to create or update all necessary online CRA registrations prior to applications for the CEWS opening on April 27.

Prepared by: Tyler Berg

Tyler is an Associate working in the Vancouver office. During his law degree, Tyler participated in the Law Students’ Legal Advice Program and the UBC Law Review, and played intramural ice hockey for the UBC Law Legal Eagles. Tyler also… more »