CRA confirms that eligible remuneration for CEWS purposes does not include taxable benefits
CRA essentially confirmed its position in 2020-0856411I7 F that where mandatory vacation, statutory holiday and sick leave pay provided for in the various collective agreements in the Quebec construction industry is added by the employer (an eligible entity) to the basic salary or wages included in each pay cheque of an eligible employee, it will consider that the eligible entity has paid that additional amount to the eligible employee in respect of the same week as the related salary or wages are paid, so as to be included in determining the CEWS entitlement of that employer for that week.
It now added that baseline remuneration is determined on the same basis for CEWS purposes, and that taxable benefits (here, group insurance plan benefits) were not to be included given that “[o]nly eligible remuneration paid to an eligible employee is included in computing the CEWS.”
Neal Armstrong. Summaries of 16 January 2023 Internal T.I. 2020-0851561I7 F under s. 125.7(1) – eligible remuneration, and baseline remuneration.