The April 19 Federal budget introduced the New Canada Recovery Hiring Program. The purpose of this program is to compensate eligible entities for extra costs incurred for increased wages or hours worked or hiring more staff.Employers eligible for the CEWS would be generally eligible to the CRHP including individuals, NPOs, registered charities and certain partnerships. However, for-profit corporations would be eligible only if it is a CCPC.Between June 6, 2021 to November 20, 2021.Similar to CEWS, would include salary, wages and other remuneration for which income taxes are withheld. Severance pay, stock option benefits and personal use of car would be 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 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 employee on leave with pay, nil
Calculated consistently with CEWS.
4.1 Reference period – per the general approach (same as for CEWS):
- Period 17 – June 2021 vs. June 2019 or May 2021 vs. May 2019
- Period 18 – July 2021 vs July 2019 or June 2021 vs. June 2019
- Period 19 – August 2021 vs August 2019 or July 2021 vs. July 2019
- Period 20 – September 2021 vs September 2019 or August 2021 vs. August 2019
- Period 21 – October 2021 vs October 2019 or September 2021 vs. September 2019
- Period 22 – November 2021 vs November 2019 or October 2021 vs. October 2019
4.2 Reference period – per the alternative approach (same as for CEWS):
- Period 17 – June 2021 or May 2021 vs. Average of January and February 2020
- Period 18 – July 2021 or June 2021 vs. Average of January and February 2020
- Period 19 – August 2021 or July 2021 vs. Average of January and February 2020
- Period 20 – September 2021 or August 2021 vs. Average of January and February 2020
- Period 21 – October 2021 or September 2021 vs. Average of January and February 2020
- Period 22 – November 2021 or October 2021 vs. Average of January and February 2020
- Period 17 – For any revenue decline over 0%, 50% X (eligible remuneration between June 6 and July 3, 2021 over March 14 and April 10, 2021)
- Period 18 – For any revenue decline over 10%, 50% X (eligible remuneration between July 4 and July 31, 2021 over March 14 and April 10, 2021)
- Period 19 – For any revenue decline over 10%, 50% X (eligible remuneration between August 1 and August 28, 2021 over March 14 and April 10, 2021)
- Period 20 – For any revenue decline over 10%, 40% X (eligible remuneration between August 29 and September 25, 2021 over March 14 and April 10, 2021)
- Period 21 – For any revenue decline over 10%, 30% X (eligible remuneration between September 26 and October 23, 2021 over March 14 and April 10, 2021)
- Period 22 – For any revenue decline over 10%, 20% X (eligible remuneration between October 24 and November 20, 2021 over March 14 and April 10, 2021)
NOTE : It will only be possible, for a given period, to claim either the CEWS or the CRHP, but not both.We offer a Crisis Relief Program to support you throughout the process. Whether you are wondering about your company’s eligibility or would like an estimate of the amount of subsidy to which you may be entitled, do not hesitate to contact a member of our team.
