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Ottawa is trying to jump-start the jobs recovery with a new program that offsets a portion of employers’ labour costs. The Canada Recovery Hiring Program (CRHP) would run from June 6, 2021, to November 20, 2021, and cover as much as 50% of pay increments to workers, either through higher wages, more hours or new hires. The program is estimated to cost $595-million.

The CRHP is designed to work in conjunction with the CEWS. Their qualifying periods overlap, while an employer’s revenue declines – which are used to determine eligibility, along with subsidy rates in the CEWS – are calculated in the same way. Eligible employers would receive whichever subsidy is greater in value. Subsidy rates in the hiring program are held at 50% for the first three qualifying periods, eventually declining to 20% by the sixth and final period.

ELIGIBLE REMUNERATION

Similar to CEWS, CRHP would include salary, wages and other remuneration for which income taxes are withheld. Severance pay, stock option benefits and personal use of a car would be considered ineligible expenses. For a given week, the eligible remuneration is:

  • For arm’s length employees, the lesser of:
    • $1,129
    • Eligible remuneration in respect of the given week
    • If an employee on leave with pay, nil
  • For non-arm’s length employees, the lesser of:
    • $1,129
    • Eligible remuneration in respect of the given week
    • Baseline remuneration in respect of the given week
    • If an employee on leave with pay, nil

 

We are still waiting for further details and information. As it becomes available, we will update you!