As you are no doubt aware, the application process opened for this program on Monday April 27.
I have spent considerable time reading and reviewing information about this complicated program, including attending a webinar on the program yesterday afternoon.
Some important points to share:
- the first step is to determine if your business is eligible. There are multiple methods available to determine eligibility. Once you have chosen the calculation method for your business, you may not change the method for future periods. If possible, we suggest that you allow the 2nd eligibility period to complete (which happens on Thursday this week) so that you have 2 of the 3 periods completed. Review the criteria and choose the method that provides the best benefit.
- dates used in the calculation for pay periods are extremely important. The eligibility period is based on the full months (Mar 1-31, April 1-30, May 1-31) but the subsidy applies to days worked ‘with respect’ to the period (Mar 15-April 11 for the first calculation). In order to claim the subsidy amount, the wages must have been paid, so not only is the days worked by the employee important, the date the paycheque is issued is also important
- The person responsible for the financial affairs for the business must certify or attest to the application details
- current information is that there will be no ‘do-overs’ allowed. Once a claim is submitted, there will be no allowance to amend or re-submit if you figure out later that you could have claimed more. Be certain prior to submitting!
- current information suggests that there are or will be 3000 auditors engaged to review these claims. It has been quite clear from the first announcement that fraudulent claims will be heavily penalized. Ordinary errors will have to be paid back with penalty as well.
This is a fabulous opportunity for employers to receive some financial assistance for their business but has a complicated rule set.
Do you Qualify?
- have your sales decreased due to COVID-19?
- have you continued to pay wages to staff after March 15?
- have you re-hired staff that were laid off due to COVID-19?
Please review the information on CRA website
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
Information to collect to start the calculation process:
- Sales report from March 2019 and March 2020, plus bank deposit detail from March 2019 and March 2020
- Sales report from April 2019 and April 2020 (after April period has closed), plus bank deposit detail from April 2019 and April 2020 (once final bank statement is available)
- Sales and Deposit detail from Jan & Feb 2020 if the alternate method is chosen
- Payroll details for all staff, all weeks, all pay periods January/February/March 1-15 for Baseline calculation (days worked, hours worked, hourly rate or salary details)
- Payroll details for all staff, all weeks, all pay periods March 15- current for Subsidy calculation
- list of all employees who are ‘non-arms length’ – anyone who is in control of the business or corporation or related to who is in control of the business or corporation
- details on any changes to any salary or wages for any employee January 2020 to current
- details on any period January 2020-current when any employee was off work for 7 consecutive days
I may add to this list later – this is a great place to start.
As previously stated, if you need assistance with your application, please let us know. We need the details above to begin the process.
Thank you,
Nancy and the Team at Padgett Orillia and Barrie
