Notice Updated April 1, 2020
The Government of Canada recently announced the Canada Emergency Wage Subsidy (CEWS). Businesses, non-profits and charities not eligible for CEWS can continue to use the Temporary Wage Subsidy for Employers (TWSE) program. Guidance for those businesses transitioning from TWSE to CEWS will be announced by the Canada Revenue Agency. Once details are available, this article will be updated. Thank you for your patience as our team works to incorporate these fast moving developments.
The Temporary Wage Subsidy for Employers (TWSE) program helps businesses impacted by the COVID-19 pandemic reduce the amount of payroll deductions to be remitted to the Canada Revenue Agency (CRA).
PaymentEvolution provides support for calculating and applying this subsidy to your payroll profile. This feature is available on any paid plan with ePay and remittance services activated.
Please check the CRA site to determine eligibility for the subsidy
How to activate the Temporary Wage Subsidy for Employers feature
- Perform your pay run as you usually would
- On the PAYMENTS step, activate the Wage Subsidy feature
- The subsidy will be automatically calculated based on the CRA's posted guidance and it will show as a line item on your Payments page
- Note- If there is no income tax being deducted from your employees there is no place for the subsidy to reduce. You can claim any amounts back from CRA at year end in this instance.
How to deactivate the Temporary Wage Subsidy for Employers feature
- Go to SETTINGS>PAY RULES>COMPANY RULES and un-check the Enabled box for this feature, then click SAVE
Specific reporting for the TWSE is found on the General Ledger and Remittance Reports. These reports can be created by going to ACTIONS>END OF PERIOD after each pay run.
Full details can be see on the PDF of the report
The GL report shows a Credit to Fed Tax Liability and a Debit to Bank/Payroll Clearing.
The Remittance report has a line entry for the deduction:
The Pay run History Report will show the amount of remittance for each pay run (with the subsidy already included)
Frequently Asked Questions
What is the Temporary Wage Subsidy for Employers?
On March 18, 2020 the Canadian Federal Government announced the Temporary Wage Subsidy for Employers program. Eligible employers may reduce their remittance payments to the CRA for remuneration paid to their employees between March 18, 2020 and June 20, 2020. The subsidy is equal to 10% of the remuneration paid during this period, up to $1,375 per employee and to a maximum of $25,000 (total) per employer.
Who is eligible for the program?
The CRA site provides details on eligibility. You must determine if you are eligible before activating this feature in your payroll profile.
Will PaymentEvolution automatically reduce remittances for me?
If you activate the feature, the subsidy will automatically be calculated for you on each subsequent pay run. If you reach the subsidy's limits (monetary or the date period covered), calculations will automatically adjust and stop. The amount remitted to the CRA as part of the ePay and remittance service will be adjusted according the the subsidy calculations.
What if I ran payroll before activating this feature?
Any pay runs performed before you activate TWSE will not be adjusted. If subsequent pay runs do not reach the subsidy's limits, you may request the balance of the subsidy to be paid to you at year end. You must make this request directly with the CRA.
What if I don't activate the feature?
If you do not activate the feature, or activate the feature part-way through the eligible period, you can ask for the subsidy to be paid to you at the end of the year (after filing your year-end T4 slips). You must make this request directly with the CRA.
What if my business is closed or I don't pay staff during this period?
If you did not pay remuneration to an employee during the eligibility period, you cannot receive the subsidy.
What if I deactivate the ePay remittance service and handle remittances manually?
The TWSE feature is only available on paid plans with active ePay and remittance services. Calculations of the subsidy will only take place if PaymentEvolution is handling remittance payments to the CRA for you. If you handle remittances manually, you will need to calculate the subsidy manually.
Will this affect my Revenu Québec remittances?
The TWSE program is only for remittance payments made to the CRA.