Calculator for the New Canada Recovery Hiring Program

Evelyn Jacks & Beth Graddon

CRA launched its new Canada Recovery Hiring Program (CRHP) calculator today, to assist businesses in applying for support based on “incremental remuneration” in the period June 6 to November 20, 2021.  The program will overlap with CEWS and is meant to help businesses grow again as the economy reopens, as a result of hiring staff, increasing pay, or increasing shifts. It’s good news and advisors will want to bring details to their business owner clients immediately.  Here are the details:

  1. The first day for making a claim is July 7.
  2. The CRHP will be based on the increase in the total eligible incremental remuneration paid to active eligible employees in all claim periods, starting with Period 17 (June 6) and ending November 20, 2021 (Period 22).
  3. The claim periods are:
    • Period 17 - June 6 to July 3
    • Period 18 - July 4 to July 31
    • Period 19 - August 1 to August 28
    • Period 20 – August 29 to September 25
    • Period 21 – September 26 to October 23
    • Period 22 – October 24 to November 20
  4. Claim Periods 17 to 20 (June 6 to September 25) will overlap with the CEWS program.Employers will need to calculate both and then can claim either subsidy based on the one that brings the highest claim in those claim periods.An infographic on how the two programs compare is available.  Download infographic: How the CEWS and the CRHP compare.
  5. The eligibility criteria is largely the same for the two program including required revenue drops.See the  online calculator or downloadable spreadsheet  for the information necessary to calculate which subsidy will give you the higher amount.
  6. Revenue drops required are the following:
    • CEWS Option 1 of 2 – Period 17:more than 0% and Periods 18-20: more than 10%
    • CRHP Option 2 of 2 – Period 17:more than 0% and Periods 18-22:more than 10%
  7. There are some additional requirements for the for-profit corporations and partnerships that will be applying; that is in the case of for profit corporations they must be CCPCs or cooperative corporations eligible for the small business deduction.Partnerships will have to show at least half the interest in the partnership is held by employers who are eligible for the CRHP program.
  8. Incremental remuneration is based on the increase in total eligible remuneration paid to active employees compared to the total eligible remuneration paid in the base claim period, which is March 14, 2021 to April 10, 2021 (Period 14).
  9. The subsidy available is equal to the incremental remuneration for a claim period multiplied by a fixed subsidy rate of 50% for claim Period 17.
  10. The subsidy will be reduced to 20% by claim Period 22
  11. There will be an automated validation system to compare claims against key validations after which payments will be made in 3 to 5 business days
  12. Eligible remuneration is described as follows:

Pay amounts needed to calculate CEWS and CRHP

Type of employee

CEWS

CRHP

Eligible employees who actively worked that week

  • Amount paid for each week in the claim period
  • Pre-crisis pay (if non-arm’s length)
  • Amount paid for each week in the claim period
  • Amount paid for each week in the base period
  • Pre-crisis pay (if non-arm’s length)

Eligible employees who were on leave with pay that week

  • Amount paid for each week in the claim period, except for period 20
  • Pre-crisis pay, except for period 20
  • Not included in the calculation

More details can be found in EverGreen Explanatory Notes, an excellent resource that is provided as an integral component of any Knowledge Bureau online certificate course.  A separate single user subscription is also available, with the following options:

  • 1 month - $99
  • 3 months - $195
  • 1 year (best value!) - $795