The federal government recently announced new subsidy programs that provide relief to organizations that want to re-hire workers previously laid off, and keep those who are already on the payroll. The Canadian Emergency Wage Subsidy (CEWS) and Temporary Wage Subsidy (TWS) will provide organizations of all sizes with a subsidy that may cover up to 75 per cent of employee wages.
An action plan for your business
While businesses may qualify for benefits under both CEWS and TWS, understanding the nuances of each program, determining eligibility, and avoiding government penalties if your application is later deemed invalid, can create a high level of stress and uncertainty.
Employers should be considering:
- Do you understand the attestation requirement for a claim?
- Do you know what percentage of claims the CRA plans to audit and what the penalty is for errors?
- Do you know how to calculate baseline remuneration under the legislation?
- Have you considered how to maximize the claim potential for employees on leave?
- Are you aware that the subsidy received by each employee will be required to be reported on their T4 at the end of 2020? Are you calculating the formula per employee as required by the legislation?
- Have you considered provisions that require consistent reporting in all periods and how to optimize the claims for the duration of the program?
As your trusted advisors, we're here to help. Because every business is unique, our experienced professionals can assist you with establishing that the methodology you use to determine eligibility – which can often be subjective – is consistent with similar organizations in your sector and across Canada. We'll help to determine that you've assembled the appropriate documentation to support your claims without delay.
These subsidies may play a critical role in your imminent staffing decisions. Please reach out to your KPMG in Canada advisor to discuss an action plan for your organization.
KPMG CEWS survey results
KPMG created a short survey about the Canadian Emergency Wage Subsidy (CEWS) program which was sent exclusively to key decision-makers. Our goal was to understand how business leaders in a variety of sectors viewed the assistance program.