CEBA Loan Forgiveness Repayment Deadline Extended
CEBA Loan Forgiveness Repayment Deadline Extended January 13, 2022 On January 12, 2022, the government of Canada announced that the repayment deadline for the Canada
The government has announced changes to the CEWS that will create greater flexibility and access to the relief measures.
Principal changes are as follows:
Claiming Period | Required reduction in Revenue | Reference period for eligibility | |
Period 1 | March 15 to April 11 | 15% | March 2020 over: March 2019 or Average of January and February 2020 |
Period 2 | April 12 to May 9 | 30% | April 2020 over: April 2019 or Average of January and February 2020 |
Period 3 | May 10 to June 6 | 30% | May 2020 over: May 2019 or Average of January and February 2020 |
Pre-Crisis Remuneration
In computing the amount of a subsidy with respect to an employee, the subsidy is limited to 75% of the employee’s pre-crisis weekly remuneration. The government has clarified that pre-crisis remuneration for an employee is based on the average weekly remuneration paid between January 1 and March 15 inclusively, excluding any seven-day periods in respect of which the employee received no remuneration.
Refunding Payroll Contributions
The government has proposed to enhance the CEWS by refunding 100% of employer-paid contributions to EI, CPP, QPP, and QPIP. More specifically, the refund covers contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer can claim the CEWS for those employees. There is no weekly or overall limit to the amount that can be refunded. Employers are required to continue collecting and remitting employer and employee contributions, and can soon apply for the refund at the same time as applying for the CEWS.
Eligible Employees
An eligible employee is an individual who is employed in Canada.
Eligibility for the CEWS of an employee’s remuneration is available to employees other than those who have been without remuneration for 14 or more consecutive days in the eligibility period, i.e., from March 15 to April 11, from April 12 to May 9 and from May 10 to June 6.
More information is available on the Government of Canada website.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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