Budget 2021 is encouraging Canadian Controlled Private Companies to hire back their employees by launching a new Canada Recovery Hiring Program that will run between June 6 and November 20, 2021. If passed into law, CRHP will be available for six qualifying periods, the first four of which align with CEWS periods 17-20. The government is using the CEWS period numbers to identify qualifying periods under the CRHP to avoid confusion (or cause it?). Eligible employers can claim either the CRHP or the CEWS for any of periods 17-20, not both.
Similar to CEWS, a revenue decline must be shown for each of the qualifying periods. The amount of subsidy available is the Hiring Subsidy Rate (below) x the Incremental Remuneration paid by an employer during a qualifying period. Incremental Remuneration is the difference paid by an employer between the qualifying period’s remuneration and the baseline period’s remuneration calculated under the General Approach or the Alternative Approach. If the ‘alternative approach’ was chosen to calculate CEWS, it must also be used to calculate CRHP.
Eligible employers must have had an active payroll number as of March 15, 2020, and the filing deadline to make a claim is 180 days after the end of the qualifying period.
Qualifying Period 17 | Qualifying Period 18 | Qualifying Period 19 | Qualifying Period 20 | Qualifying Period 21 | Qualifying Period 22 | |
Dates | June 6 – July 3, 2021 | July 4 – July 31, 2021 | Aug 1 – Aug 28, 2021 | Aug 29 – Sept 25, 2021 | Sept 26 – Oct 23, 2021 | Oct 24 – Nov 20, 2021 |
Revenue decline | >0% | >10% | >10% | >10% | >10% | >10% |
Hiring subsidy rate | 50% | 50% | 50% | 40% | 30% | 20% |
General approach | June 2021 over June 2019 or May 2021 over May 2019
|
July 2021 over July 2019 or June 2021 over June 2019 | August 2021 over August 2019 or July 2021 over July 2019 | September 2021 over September 2019 or August 2021 over August 2019 | October 2021 over October 2019 or September 2021 over September 2019 | November 2021 over November 2019 or October 2021 over October 2019 |
Alternative approach | June 2021 or May 2021 over average of January and February 2020 | July 2021 or June 2021 over average of January and February 2020 | August 2021 or July 2021 over average of January and February 2020 | September 2021 or August 2021 over average of January and February 2020 | October 2021 or September 2021 over average of January and February 2020 | November 2021 or October 2021 over average of January and February 2020 |
If the ‘alternative approach’ was chosen by the employer to calculate CEWS, it must also be used to calculate CRHP. For complete details about the CRHP, please visit the government’s backgrounder here, or reach out to our team today!
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