To help employers keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic, the Government has implemented the Canada Emergency Wage Subsidy (CEWS). This important economic measure provides a subsidy of 75% of an eligible employee’s weekly earnings, to a maximum of $847 per employee per week, to eligible employers, for up to 12 weeks. Retroactive to March 15, 2020, the CEWS will prevent further job losses and encourage employers to re-hire workers previously laid off as a result of COVID-19. The Canada Revenue Agency (CRA) is administering the CEWS on behalf of the Government.
The Honourable Diane Lebouthillier, Minister of National Revenue, launched the application process for the CEWS. As of today, employers can apply for the CEWS through My Business Account or through the CRA’s online application portal, and their representatives can apply through Represent a Client.
All claims that are approved through the CRA’s automated verification process will be sent for payment on May 5, so that payments being made through direct deposit should begin to appear in employers’ accounts as of May 7. Some applications will require a secondary verification, done manually, and in these cases the CRA may contact employers to verify information. It is expected that these secondary verifications will take no more than 72 hours in the vast majority of cases.
The CRA has again partnered with financial institutions to enroll Canadian employers for direct deposit, and employers can now register business payroll accounts for direct deposit with the CRA through their bank portals.
Signing up for direct deposit will enable employers whose applications are approved to receive their CEWS payments quickly and securely. Employers can sign up for direct deposit with their financial institutions even after applying for the CEWS.
Related Products or Associated Links
Backgrounder
CEWS FAQs
CEWS Online application portal
CRA’s Canada Emergency Wage Subsidy Calculator
My Business Account
Direct Deposit
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