Canada Recovery Hiring Program (CRHP) & CEWS - CERS update
Posted on June 14, 2021
CRA created the CRHP to assist employers hire more employees to recover and grow their businesses as the government reopens the economy. This program was introduced as part of Bill C-30 and will be available for application when it receives Royal Assent.
What is Available?
Subsidy of up to 50% of incremental remuneration paid to eligible active employees.
This includes the following:
Incremental Salaries, Wages, and other remuneration (not including severance pay, stock options or personal use of corporate vehicle) for Eligible Employees.
Eligible employees are actively employed during the qualifying period, including vacation and sick leave but not on other paid leaves of absences.
The incremental remuneration is the difference between the qualifying period and the baseline period of March 14, 2021, to April 10, 2021 for each employee to a maximum of $1,129 per week.
Who is Eligible?
Employers who qualify for the Canada Emergency Wage Subsidy (CEWS). This would include Canadian-controlled private corporations, individuals, non-profit organizations, registered charities, and certain partnerships who demonstrate a decline in revenue for the period. If CEWS is no longer in effect the employer’s decline in revenue would need to be more than 10% compared to pre-pandemic revenues of the same calendar month.
June 6, 2021, to November 20, 2021 (Periods 17 to 22) to be applied for within 180 days after the end of each qualifying period.
Can I claim both CEWS and CRHP for the same period?
NO, you can only qualify for one or the other therefore you should compare the amounts available under each program to determine the best subsidy for your business.
CEWS and CERS UPDATE:
The government has proposed to extend the Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy until September 25, 2021. They have also proposed to gradually decrease the subsidy rate, beginning July 4, 2021, to ensure an orderly phase-out of the program as vaccinations are completed and the economy re-opens.
Details will be provided once they become available.