The 2021 Budget proposed a new program called the Canada Recovery Hiring Program to help eligible employers with the costs of re-hiring or hiring new staff as their business opens back up. Employers can only claim one subsidy per qualifying period; the Canada Recovery Hiring Program (CRHP) or the Canada Emergency Wage Subsidy (CEWS).
There are many similarities between the two programs, however, there are a couple of subtle differences.
- Eligible employers remain the same, with the exception that for-profit corporations must be Canadian-controlled Private Corporations (CCPC’s).
- Eligible employees that worked in the claim period are covered under both programs. Employees that were on leave with pay are only covered under CEWS.
- For CEWS you generally use the amount that was earned by the employee in the claim periods. For the CRHP it is based on the increase in earned wages between period 14 (March 14 to April 10) and the current period.
- The required revenue drop for both programs is more than 0% for period 17 and more than 10% for periods 18-20.
The subsidy rate for the CRHP is a flat rate. For periods 17-19 the rate is 50%, period 20 is 40%, period 21 is 30% and period 22 is 20%. The CRHP is planned to run for 2 periods after the CEWS stops in period 20.
You can apply for the CRHP in the same way as CEWS; using a CRA Web Access Code or through My Business Account under the Payroll section. You can also have your representative apply through Represent A Client.