As the rate of Canada Emergency Wage Subsidy(CEWS) is gradually reducing, Canada Recovery Hiring Program(CRHP) is introduced by the federal government on June 6th, 2021. This program aims to support Canadian employers that are impacted by the Covid-19 pandemic, and most importantly to help Canadian economy to recover. To make the application process easier to understand, we have simplified the eligibilities and listed the differences between CEWS and CRHP, as employers cannot apply for both subsidies for the same claiming period.
Application start date
June 6th, 2021
Application end date
November 20th, 2021
Qualifications
- had a CRA payroll account on March 15th, 2020
- is an eligible employer, such as sole proprietors, corporations, non-profit organizations etc. Visit CRHP website for details.
- have experienced a revenue drop due to Covid-19 related reasons
How to calculate the subsidy amount you will be receiving
A: the total amount of remuneration for the claiming period
B: the total amount of remuneration for period March 14 to April 10, 2021
C: flat rate determined by the program:
Here is an example.
A: If you are about to claim the subsidy for period 17 (June 6 to July 3, 2021), and you have a total remuneration of $20,000 paid to eligible employees;
B: And you had a total remuneration of $12,000 paid to eligible employees during March 14 to April 10, 2021;
C: And we know that for period 17 the flat rate is 50%;
Therefore, the subsidy amount you can claim for period 17 (June 6 to July 3, 2021) is:
( $20,000-$12,000 ) x 50% = $3,200
Note
- The maximum amount of eligible remuneration paid to each employee each week is $1129.
- If the employee is on leave with pay that week, $0
Both CEWS and CRHP are provided by the federal government of Canada to help employers in regards to wages paid to employees. CEWS is aiming to help employers avoid losing existing employees during Covid-19 pandemic, whereas CRHP is introduced to encourage employers to rehire and provide more positions. Starting from June 6th, 2021, employers may choose to apply for whichever has the most subsidy amount, but not both for the same claiming period.
Following is a comparison chart provided by CRHP has provided the official comparison for CEWS and CRHP.