Your top legislation questions… answered!
Oct 14, 2020Resources
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Payworks’ Service team is pleased to assist our valued clients each day on queries ranging from payroll basics to complex legislation.
With the introduction and expansion of so many federal and regional programs in recent months, we’ve been gathering the most frequently-asked questions (and their answers!) and sharing them in our Help Centre, accessible from the Payworks home screen 24/7.
Here are a few of the most common topics of discussion over the past few weeks. Please contact your Payworks Client Service Representative or access the Help Centre to learn more!
“Can we still manually override the 10% Temporary Wage Subsidy for Employers for a pay period that pays out after June 19, 2020?”
Yes, if you haven’t claimed your full amount, you can still use the Wage Subsidy Override feature in Payworks’ application to reduce your federal income tax remittances up to the limits and values calculated during the eligible period of March 18, 2020 to June 19, 2020.
Per the Canada Revenue Agency (CRA)’s example:
If you calculated a subsidy of $2,050 on remuneration paid from March 18, 2020 to June 19, 2020, but only deducted $1,050 of federal, provincial, or territorial income tax from your employees, you can reduce a future payroll remittance by $1,000, even if that remittance is in respect to remuneration paid after June 19, 2020.
“What will happen to an employee’s earnings that they’re receiving from the Canada Emergency Response Benefit (CERB) if we hire them back? Will CERB payments stop?”
Employers may retroactively rehire employees and use the Canada Emergency Wage Subsidy (CEWS) program to help pay the related wages. Employees retroactively rehired by their employer for the same period may not be eligible to receive the CERB.
As a result, the CRA encourages employers to communicate with employees that they may be required to repay some or all of the CERB to the Government of Canada. Please see the CRA’s CERB FAQs for more information: https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html.
“If we rehire employees, do we need to pay them retroactively before applying for the Canada Emergency Wage Subsidy (CEWS)? Do we pay them 75% and wait to receive CEWS reimbursement?”
Employees who’ve been laid off or furloughed can become eligible retroactively, as long as they’re rehired and their retroactive pay and status meet the eligibility for the claim period (visit https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html to determine employee eligibility). You must rehire and pay these employees before they’re included in your calculation for the subsidy.
You can set up a new pay element within the Payworks application to track these payments separate from other earnings. Instructions are available in the Help Centre, or you can contact your Client Service Representative to get started.