The Canada Emergency Wage Subsidy has been extended past June 6. On one hand, it is a good news if your business is in trouble. On the other hand, it is an evidence of how bad the economy is. There will be a long way to recovery. The updated eligibility rules will be published in the next few weeks and we will update you.
I recently shared with you 3 pitfalls about the Emergency Wage Subsidy you need to be aware of. If you missed them, here is the link. I am happy to share the 4th one with you.
4. Misalignment between your pay periods and eligible pay periods
Chances are, that your payroll expenses are inconsistent month after month and week after week. Chances are, that you pay periods do not match the eligible pay periods:
- March 15 – April 11, 2020
- April 12 – May 9, 2020
- May 10 – June 6, 2020, etc.
To align you pay periods with eligible periods, break down your payroll and pay periods accordingly. For example, if your pay period is a calendar month, and your payroll is $10,000 in March, and $12,000 in April, here is how you calculate eligible payroll:
- $10,000 X (17/31) = $5,484 i.e., the payroll for eligible 17 days of March.
+ - $12,000 X (11/30) = $4,400 i.e. the payroll for eligible 11 days of April.
= - $9,884. This is the eligible payroll you can claim the wage subsidy against.
Do not use monthly average!
The math gets even more complex if you pay weekly or biweekly and your pay periods don’t align to the eligible ones.
How to Apply? Apply via My Business Account with Canada Revenue Agency.
WHY CHOOSE US TO WRITE YOUR APPLICATION?
- Trusted partner with 7 years of experience in government funding applications writing. You need a partner with expertise, not someone who happens to have access to your payroll.
- Program complexity. The Emergency Wage Subsidy is not as easy as it seems. Review the program rules and decide for yourself.
- Maximum benefits. Our deep understanding of the program will help you get the most out of it.
- Fair fees. We will not take advantage of fellow Canadians in trouble and offer a fair and reasonable fee for wage subsidy applications.
CLICK HERE TO GET HELP WITH EMERGENCY WAGE SUBSIDY APPLICATION
Please stay at home if you can. We will get through this together. Our team is fully available.