CRA publishes a webpage on the emergency wage subsidy

CRA has added a plain-language webpage on calculating the Canada emergency wage subsidy.

It confirms that an “eligible entity” (i.e., employer) includes a trust.

Can you claim that you have suffered the required15% or 30% drop in revenue if your income on an accrual basis is good, but the cash has been slow in coming in? CRA states:

Use your normal accounting method when calculating revenue. You can use the cash method or the accrual method, but you must use the same approach throughout.

Ss. 125.7(6) and 163(2.901) are summarized as follows:

If you artificially reduce your revenue for the purpose of claiming the wage subsidy you will be required to repay any subsidy amounts you received plus a penalty equal to 25% of the total value.

CRA also states:

Employees who have been laid off or furloughed can become eligible retroactively, as long as you rehire them and their retroactive pay and status meet the eligibility criteria for the claim period.

Neal Armstrong. Summaries of Canada Emergency Wage Subsidy (CEWS) Calculator, 21 April 2020 CRA Webpage under s. 125.7(1) - eligible employee, eligible entity, eligible remuneration, qualifying revenue and s. 125.7(6).