With all the changes in the COVID subsidy programs, a lot of confusion has been created around which programs businesses might qualify for and what the new rules are. This summary should help shed a little light on the most recent updates and what it takes to qualify.
Subsidies Available Starting Period 22:
The following are the most recent and updated details regarding the wage & rent subsidies and their respective deadlines.
- A wage subsidy.
- This has been available since period 17 but has since been extended.
- Continues to require a 10% revenue decline in each period and compares incremental wages in the period to a base period.
- The base period remains to be March 14, 2021, to April 10, 2021.
- The subsidy takes a percentage of the incremental wages.
- The weekly wages are subject to a max of $1,129 per week per employee.
- Increases in one employees’ wage get offset by decreases to other employees’ wages, therefore, wages overall must increase compared to the base period.
- Wage and rent subsidy.
- There are two ways to qualify:
- More than 50% of eligible revenues come from one or more of the tourism, hospitality, arts, entertainment, or recreation activities, and have a 12-month average revenue drop from March 2020 to February 2021 of at least 40%, and have a current claim period revenue drop of at least 40%, or
- Local Lockdown Program (LLP) – You do not need to be in the tourism and hospitality sector, and you do not need the 12-month average revenue drop. You do need to be affected by a qualifying public health restriction and have a claim period revenue drop of at least 40%
- For a list of activities that qualify, see this link on CRA Tourism, hospitality, arts, entertainment, and recreation activities that qualify for the THRP.
- For a qualifying public health restriction, the activities that were stopped due to the public health restriction accounted for at least 25% of total eligible revenue.
- For periods 24 and 25, the government is proposing to temporarily expand the LLP so that a business can qualify if a public health order has reduced an entity’s capacity by 50% or more and the restricted activities account for at least 50% of the entity’s total qualifying revenues.
- They also intend to lower the current month’s revenue loss threshold from 40% to 25%.
- A wage and rent subsidy.
- An organization can qualify regardless of sector.
- You must have a 12-month average revenue drop from March 2020 to February 2021 of at least 50%, and have a current claim period revenue drop of at least 50%.
Period & Subsidy Deadlines
|Period #||Revenue||Subsidy period||Deadline|
|CEWS||CERS||CRHP||THRP/HHBRP||Current month ref.||Prior month ref.||Period start||Period end|
|1||March 2020||March 2019||March 15, 2020||April 11, 2020||January 31, 2021|
|2||April 2020||April 2019||April 12, 2020||May 9, 2020||January 31, 2021|
|3||May 2020||May 2019||May 10, 2020||June 6, 2020||January 31, 2021|
|4||June 2020||June 2019||June 7, 2020||July 4, 2020||January 31, 2021|
|5||July 2020||July 2019||July 5, 2020||August 1, 2020||January 31, 2021|
|6||August 2020||August 2019||August 2, 2020||August 29, 2020||February 25, 2021|
|7||September 2020||September 2019||August 30, 2020||September 26, 2020||March 25, 2021|
|8||1||October 2020||October 2019||September 27, 2020||October 24, 2020||April 22, 2021|
|9||2||November 2020||November 2019||October 25, 2020||November 21, 2020||May 20, 2021|
|10||3||December 2020||December 2019||November 22, 2020||December 19, 2020||June 17, 2021|
|11||4||December 2020||December 2019||December 20, 2020||January 16, 2021||July 15, 2021|
|12||5||January 2021||January 2020||January 17, 2021||February 13, 2021||August 12, 2021|
|13||6||February 2021||February 2020||February 14, 2021||March 13, 2021||September 9, 2021|
|14||7||March 2021||March 2019||March 14, 2021||April 10, 2021||October 7, 2021|
|15||8||April 2021||April 2019||April 11, 2021||May 8, 2021||November 4, 2021|
|16||9||May 2021||May 2019||May 9, 2021||June 5, 2021||December 2, 2021|
|17||10||17||June 2021||June 2019||June 6, 2021||July 3, 2021||December 30, 2021|
|18||11||18||July 2021||July 2019||July 4, 2021||July 31, 2021||January 27, 2022|
|19||12||19||August 2021||August 2019||August 1, 2021||August 28, 2021||February 24, 2022|
|20||13||20||September 2021||September 2019||August 29, 2021||September 25, 2021||March 24, 2022|
|21||14||21||October 2021||October 2019||September 26, 2021||October 23, 2021||April 21, 2022|
|22||22||November 2021||November 2019||October 24, 2021||November 20, 2021||May 19, 2022|
|23||23||December 2021||December 2019||November 21, 2021||December 18, 2021||June 16, 2022|
|24||24||January 2022||January 2020||December 19, 2021||January 15, 2022||July 14, 2022|
|25||25||February 2022||February 2020||January 16, 2021||February 12, 2022||August 11, 2022|
|26||26||March 2022||March 2019||February 13, 2022||March 12, 2022||September 8, 2022|
|27||27||April 2022||April 2019||March 13, 2022||April 9, 2022||October 6, 2022|
|28||28||May 2022||May 2019||April 10, 2022||May 7, 2022||November 3, 2022|
Prepared by: Julia Komaniecki, CPA
Meet Julia, one of our managers! Julia graduated from the University of Alberta in 2016 with a Bachelor of Commerce and a major in Accounting. In 2019 she completed the CPA program and received her designation. Julia has experience with oil & gas companies, not-for-profits and other private companies. Julia enjoys helping clients with any concerns they have and finding any efficiencies that they can use in their business practices. When Julia is not doing accounting, she enjoys immersing herself in activities such as reading, cooking and various exercise classes.