Avoiding Layoffs and Rehiring Employees

Last updated: July 15, 2020. For the most up-to-date information, see the Government of Canada’s COVID-19 Economic Response Plan and our Government Resources page

Small businesses can access payroll support from the federal government during the COVID-19 health emergency.

All text and resources on this page are researched and compiled by our project partner, the Vancouver Chinatown Foundation. The C19 Response Coalition has edited some passages for clarity.

Click here to find the Vancouver Chinatown Foundation’s printable list of COVID-19 resources for small business in BC. Available in English and Traditional Chinese.

Canada Emergency Wage Subsidy (CEWS)

Updated: July 15, 2020.

The C19 Response Coalition Team says...

Learn more about CEBA eligibility, benefits, and more through this detailed guide made by our coalition member, the Bảo Vệ Collective.

The federal government will provide 75% of an employee’s wage (max. $847 per week) from March 15, 2020 to June 6, 2020.

Who it’s for: Employers with payroll who have suffered a drop in gross revenue of at least 15% in March, and at least 30% in April and May.

Dates and application details:

Application start date: April 27, 2020
Employers must do their best to top up the remaining 25% of employees’ wages.
Subsidy period: March 15, 2020 to June 6, 2020.
How to apply: through your My Business Account on CRA.

Notes for prospective recipients:

The CEWS is a form of government assistance and should be included in your taxable income.
You must reapply after each month and administer and make payroll remittance to the CRA as usual.
You need to provide supporting documents confirming a drop in gross revenues during the respective periods of at least:
- Period 1: 15% for March 2020 when compared to March 2019 or average gross revenue earned in January and February 2020.
- Period 2: 30% for April 2020 when compared to April 2019 or average gross revenue earned in January and February 2020.
- Period 3: 30% for May 2020 when compared to May 2019 or average gross revenue earned in January and February 2020.

As of a federal government announcement on April 8, 2020, employers who qualify for CEWS can also apply for an expanded measure.

This includes: 100% refund for certain payroll contributions.

Note: You must apply for this refund at the same time that you apply for CEWS.

Business Wage Subsidy

The federal government will provide 10% of an employee’s wage for up to 3 months, up to $1,375 per employee (max. $25,000 per employer).

Who it’s for: employers (individuals, partnerships, corporations) with payroll.

Dates and application details:

Subsidy period: March 18 to June 19, 2020.
How to receive it: The monthly remittance to the CRA should be reduced by the amount of the business wage subsidy. No application is required.
You have to manually calculate the subsidy. Please read this page from the CRA to find out how.