CEWS Now Allows for Accrual-based Accounting
The latest round of changes to the Canada Emergency Wage Subsidy (CEWS) program broaden its reach by allowing entities that use the cash method of accounting to use accrual-based accounting to calculate their revenues. This is one of the changes that the Canadian Real Estate Association (CREA) had advocated for to make the program accessible to more brokerages.
CEWS has also been extended until December 19, 2020, another change advocated for by CREA.
Sliding Subsidy Scale Also Introduced
In addition, employers no longer have to meet a 30 per cent revenue decline threshold. Instead, employers can apply for a base subsidy that matches the level of revenue decline they've experienced. This subsidy will increase or decrease in line with revenue losses and gains. Employers hardest hit by COVID-19 may also qualify for a top-up subsidy of up to an additional 25 per cent. For details on the varying base rate, go to Department of Finance's CEWS backgrounder.
For more information or to apply for the program, visit the CEWS website or call 1-833-966-2099.
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