Emergency Wage Subsidy: 3 Pitfalls You Need to Know

As you may know, Canada Emergency Wage Subsidy that provides 75% of the payroll, opened its doors on Monday, April 27, 2020. After filing the first few applications for our clients, I wanted to warn you about 3 major pitfalls we bumped into.

1. Choosing incorrect baseline sales to determine eligibility

To qualify for the first wage subsidy claim, you must demonstrate the decline in sales by at least 15% in March 2020 compared to either March 2019 or the average of January and February 2020. The selection determines the baseline for all future wage subsidy claims. It means that if you chose to compare your March 2020 sales to March 2019 sales, you would have to compare your April 2020 to April 2019 sales to qualify for the next wage subsidy claim. You are not allowed to change the approach. So be strategic and choose the right one from the beginning.

2. Missing to claim CPP/QPP and EI reimbursements

CRA did an excellent job creating an Excel calculator for the wage subsidy amount. But they forgot to create one for calculating source deductions amounts you can reimburse. If your employees were on paid leave (due to sickness or lack of work, for example), you could claim the amounts of CPP/QPP and EI contributions you paid. The contributions formula varies from province to province. Make sure you calculated the amounts accordingly.

3. Lack of direct deposit set up with CRA

Even if you have My Business Account with CRA, please, make sure that you also set up a direct deposit with the agency. It will help you get the subsidy much faster.

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.

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