June 10, 2021

Canada Recovery Hiring Program

The 2021 Budget proposes a new subsidy: the Canada Recovery Hiring Program (“CRHP”).

From June 6, 2021 to November 20, 2021, an eligible entity could claim the CRHP. Up until September 25, 2021, the CRHP is based on the same periods as for the Canada Emergency Wage Subsidy (“CEWS”) and the Canada Emergency Rent Subsidy (“CERS”). For the remaining periods, the CEWS and the CERS will no longer be in effect, but the CRHP periods will continue to consist of four weeks.

CRHP REFERENCE PERIODS IN PERIODS 17 TO 22
Qualifying PeriodGeneral ApproachAlternative Approach
Period 17June 6, 2021
to
July 3, 2021
June 2021 over June 2019
OR
May 2021 over May 2019
June 2021 OR May 2021
over
average of January and February 2020
Period 18July 4, 2021
to
July 31, 2021
July 2021 over July 2019
OR
June 2021 over June 2019
July 2021 OR June 2021
over
average of January and February 2020
Period 19August 1, 2021
to
August 28, 2021
August 2021 over August 2019
OR
July 2021 over July 2019
August 2021 OR July 2021
over
average of January and February 2020
Period 20August 29, 2021
to
September 25, 2021
September 2021 over September 2019
OR
August 2021 over August 2019
September 2021 OR August 2021
over
average of January and February 2020
Period 21September 26, 2021
to
October 23, 2021
October 2021 over October 2019
OR
September 2021 over September 2019
October 2021 OR September 2021
over
average of January and February 2020
Period 22October 24, 2021
to
November 20, 2021
November 2021 over November 2019
OR
October 2021 over October 2019
November 2021 OR October 2021
over
average of January and February 2020

 

CRHP would be available to employers that:

  • Are eligible to the CEWS;
  • Satisfy certain other status conditions– including, where the employer is a corporation, it is a Canadian-controlled private corporation (“CCPC”) (including a cooperative corporation that is eligible for the small business deduction) or, where the employer is a partnership, certain conditions on the composition of its partners. Other eligible employers would include individuals, non‑profit organizations and registered charities; and
  • Have suffered a revenue drop (determined on the same basis as under CEWS and CERS), or, for the periods 18 to 22, have suffered a revenue drop of more than 10 per cent.

The CRHP would subsidize the incremental remuneration paid to an eligible employee at a rate of 50 % in periods 17 to 19, and then the subsidy rate would be 40%, 30% and 20% in periods 20 to 22, respectively.

The CRHP would not be available for furloughed employees.

Incremental remuneration for a qualifying period means the difference between an employer’s total eligible remuneration paid to eligible employees for the qualifying period and its total eligible remuneration paid to eligible employees between March 14, 2021 to April 10, 2021 (“baseline period”). In both the qualifying period and the baseline period, eligible remuneration for each eligible employee would be subject to a maximum of $1,129 per week.

As is currently the case for the CEWS, the eligible remuneration for a non-arm’s length employee for a week could not exceed their baseline remuneration determined for that week.

An eligible employer would be permitted to claim either CRHP or the CEWS for a particular qualifying period, but not both.

Therefore, the determination of whether CEWS or CRHP would be more favorable to an employer would depend on the particular circumstances, including the revenue drop suffered (which increases the subsidy under CEWS) and the degree of incremental remuneration between the qualifying period and the baseline period (which increases the subsidy under CRHP).

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