The Canada Emergency Wage Subsidy (CEWS) opens on Monday to help Canadian employers keep and rehire workers amidst the challenges posed by the COVID-19 pandemic.
The federal government has implemented a subsidy for eligible employers to give 75% of employee wages for up to 12 weeks, retroactive from March 15, 2020, to June 6, 2020.
The maximum benefit is $847 per employee each week.
“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) said in a statement.
The Minister of National Revenue, Diane Lebouthillier, launched the application process for CEWS, which the CRA is administering on behalf of the government.
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All claims that are approved through the CRA’s automated verification process will be sent for payment on May 5, so that payments made through direct deposit begin to appear in employers’ accounts as of May 7.
However, according to the federal government, 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 for most cases.
“We are living in unprecedented times and CRA public servants have shown incredible dedication in delivering our government’s economic measures to see us through this crisis. We successfully delivered the Canada Emergency Response Benefit and are well-equipped to continue this important work for Canadian businesses,” Lebouthillier said.
“This $73 billion benefit will put Canadians back on the payroll and help our economy stabilize as we continue our fight against COVID-19 and look forward to our economic recovery from the crisis.”
The CRA has partnered again 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 subsidy.