Last updated: Oct. 8, 2021
The Canada Recovery Hiring Program (CRHP), which was introduced during the federal budget has officially launched.
The program provides a subsidy of up to 50 per cent of eligible salary or wages and is available to eligible employers who have experienced qualifying revenue declines due to the COVID-19 pandemic so they can ramp up their hiring and employment practices as they recover from the economic impact of COVID-19 pandemic.
Employers can apply for CRHP support through the Canada Revenue Agency (CRA) for June 6, 2021 (retroactively), through to November 20, 2021.
The CRHP will overlap with the Canada Emergency Wage Subsidy (CEWS) and eligible employers can choose to claim wage support from either program until September 25th, 2021, when CEWS ends.
Eligible employers will be able to claim the subsidy of whichever program provides them with the greater amount, but they will not be able to use both within the same claim period. CEWS will automatically be applied if both amounts are equal.
We have broken down the details to help your business be prepared to apply for whichever subsidy program will help you best.
What’s the difference between CEWS and CRHP?
The biggest differences relate to calculating wage subsidy for CEWS vs. CRHP. Below is a breakdown of the similarities and differences:
|Revenue Drop||Period 17: more than 0%
Periods 18-20: more than 10%
*See claim periods below
|Period 17: more than 0%
Periods 18-20: more than 10%
*See claim periods below
|Subsidy Rate||Varies depending on revenue drop||Fixed rate|
|Subsidy amount||Subsidy amounts are variable. Visit here to calculate your amount based on which period you are applying for||Up to 50% on working employee wages to a maximum of $1129/week|
|Top-up amount||Available, depending on revenue drop||Not available|
|Employee pay factor||Based on amount paid to eligible employees in a claim period||Based on increase in the amount paid to active employees compared to how much was paid from March 14 to April 10, 2021|
|Includes amounts for employees on leave with pay (furloughed)||Periods 17-20: yes
Period 20: no
*See claims period below
|Includes refund of employer-paid portions of CPP/QPP/EI/QPIP||Yes||No|
|Subtracts amounts received through ESDC work-sharing||Yes||No|
|Subject to possible repayment based on executive compensation||Yes, certain corporations under specific circumstances||No|
Who is eligible?
Eligibility criteria for CRHP is the same as CEWS, however for-profit corporations are eligible only if they are a Canadian-controlled private corporation, are eligible for the small business deduction, or are a partnership where at least 50% of interests are held by employers eligible for the CRHP.
Employers should note that most employees that were eligible for CEWS are eligible under CRHP, however employees who were on paid leave are not eligible to be included in the CRHP calculation.
The first claim period you can claim CRHP for is period 17. All other claims follow CEWS periods and are a period of 4 weeks beginning on a Sunday.
It is important to reapply and confirm your eligibility each claim period as the subsidy does not renew automatically.
Claim period 17 runs from June 6 to July 3, 2021 and deadline to apply is Thursday, December 30, 2021. The next claim period (18) will run from July 4 to July 31, 2021, with applications opening Sunday, August 1, 2021.
Further claim periods are as follows:
Period 20: August 29 to September 25, 2021
Period 21: September 26 to October 23, 2021
Period 22: October 24 to November 20, 2021
How to apply
Using the online calculator, you can enter your revenue and employee pay information to see whether CRHP or CEWS is higher and which subsidy is best to apply for.
It is important to print and save the numbers from your calculations to use for your application. You can apply through your My Business Account, Represent a Client, or the printable web forms.
What happens after I apply?
If you are registered for direct deposit, you can expect your payment within 3 to 8 days, and the same for cheque plus mailing time.
Each claim period deadline is 180 days after the end of the claim period. There is no availability to change or cancel online yet, however if you need to change from CRHP to CEWS, you can simply submit an application for CEWS that will then replace your CRHP application.
If you have claimed a higher amount that you are entitled to, you may be subject to interest. You can return the overpayment to reduce any interest charges through you My Business Account.
Be sure to keep all of your records such as your reduction in revenue and payments to employees. This can be very important when it comes to the next tax season.
After your application, you will receive a Notice of determination to know if your claim was accepted and how much you will receive.
What if I have more questions?
The CRA is currently hosting interactive Q&A sessions for businesses, non-profits, and charities. These sessions are in English and French and offer the opportunity to learn more and receive support prior to your application.
Have questions about this or other COVID-19 programs for Canadian businesses? Unlimited consultation related to tax matters is a key benefit of FBC Membership. We’re offering a free consult where we get to know your business and determine next steps on saving you time and money. Request your consultation online.