Canada Recovery Hiring Program (CRHP) details available. Hello everyone, As if COVID hasn’t given us enough to worry about, here’s another acronym!
The Canada Recovery Hiring Program (CRHP) is very similar to the current Canada Emergency Wage Subsidy (CEWS) program, with just a few differences which I will outline below. Both of these subsidies are available for periods 17 to 20 (June 6 to September 25) and then the CRHP is available for two additional periods running from September 26 to November 20, 2021. The online calculator and the downloadable spreadsheet will calculate both subsidies for you now (click here). You can only apply for one of theses subsidies, not both, in each period, whichever gives you the higher amount. You can apply for a different subsidy in each period. If you apply for the CRHP, you will have to provide the amount you would have been eligible for under the CEWS program to ensure you are eligible for the CRHP and that you are receiving the greater amount.
DIFFERENCES:
- The first big difference is that the CRHP program uses a base period which is the same as that for the March 14 to April 10, 2021 CEWS claim period. Either January 1 to March 15, 2020, March 1 to June 30, 2019 (period 17 only) or July 1 to December 31, 2019.
- The CRHP program is based on how much your overall pay to your employees has increased from the base period.
- Another difference is the subsidy rate. For the CEWS program, the rate is dependent on how much your revenue dropped, while for the CRHP program, it is a fixed rate for each period.
- Eligible employees include arm’s-length and non-arm’s-length employees that would be eligible for the CEWS. Employees on paid furlough are NOT eligible for the CRHP program.
- You will need to know the weekly pay for each employee during both the base period and the claim period to calculate the subsidy. This would be the amount earned during each week and not what was paid in those weeks. However, the amount earned must be paid before you can apply for a period.
For the Canada Revenue Agency website click HERE (CRHP program.)
The intent of this new program is to assist businesses, especially those most directly affected by the COVID restrictions, to hire more staff and increase the hours for existing staff, back to pre-Covid levels as the restrictions end and the economy re-opens. If you are unsure if you qualify for either the CEWS or CRHP, or need assistance in preparing and submitting your application, please feel free to contact us and we would be happy to help you.
As always, if you have any questions or need assistance with this topic, please feel free to contact us at 403-509-3290 or info@focusllp.ca.
On behalf of all of us at Focus LLP stay safe and healthy!
Glenn Fines, CPA, CGA
Partner, Focus LLP