CRA adds some positions on its CEWS webpage

CRA has expanded some of its positions in its Webpage Q&A on the CEWS (wage subsidy). These include:

  • CRA will recognize employee cost sharing arrangements where, for example, medical professionals share support staff and only one entity has a payroll account with CRA to handle the source deductions – so that, provided the other employers open up payroll accounts with CRA, they can apply for the CEWS based on their agreed share of the payroll.
  • Regarding the requirement in the definition of “eligible employee” that the individual be “employed in Canada,” CRA stated that “generally, a person exercises the functions of their employment at the place where they are physically present,” so that “when that place is situated outside Canada, that person will not generally be considered as being ‘employed in Canada’.”
  • Amounts paid by an eligible employer to an eligible employee as a maternity or parental top-up amount are generally considered as eligible remuneration for the relevant claim period.

Neal Armstrong. Additional summaries of Frequently asked questions - Canada emergency wage subsidy (CEWS) CRA Webpage 6 October 2020 under s. 125.7(1) – eligible employee, eligible remuneration.