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Federal Budget ->  COVID-19 Financial Relief  ->   Canada Recovery Hiring Program (CRHP)

Canada Recovery Hiring Program (CRHP) For Employers

Income Tax Act s. 125.7

The legislation for the CRHP is found in Bill C-30, Budget Implementation Act, 2021, No. 1, which received Royal Assent on June 29, 2021.

The CRHP is available for the CEWS periods 17 (Jun 6 to Jul 3, 2021) to 21 (Sep 26 to Oct 23, 2021), and for 1 additional period, the 4 weeks ending Nov 20, 2021.  Those eligible in periods 17 to 21 can apply for the CEWS or the CRHP, whichever subsidy gives them the higher amount.

The required revenue reduction to be eligible for the CRHP is more than 0% in period 17, and more than 10% in periods 18 to 22.

Employers who are eligible for the CEWS will be eligible for the CRHP, except for certain corporations and partnerships (which still may be eligible for the CEWS).  The only for-profit corporations and partnerships that are eligible are:

  1. Canadian-controlled private corporations (CCPCs)
  2. Cooperative corporations that are eligible for the small business deduction
  3. Partnerships where at least 50% of the partnership's interests are held (directly or indirectly) by employers eligible for the CRHP

Individuals, registered charities, and non-profit organizations which are eligible for the CEWS are also eligible for the CRHP.

CRHP Base Period Remuneration

The base period for the CRHP is March 14 to April 10, 2021.  Your overall pay (eligible remuneration) for each claim period is compared to the base period to determine the increase from that period.

Recovery Wage Subsidy Rate / Application Deadlines

Period 4 Wk Period
Ending Date
Subsidy
Rate
Application
Deadline
17 Jul 3/21 50% Dec 30/21
18 Jul 31/21 50% Jan 27/22
19 Aug 28/21 50% Feb 24/22
20 Sep 25/21 40% Mar 24/22
21 Oct 23/21 30% Apr 21/22
22 Nov 20/21 20% May 19/22

The above deadlines are for applications for the CRHP, or to increase the amount of a previous claim.

The deadline is 180 days after the end of the claim period.

There is no deadline to cancel or reduce the amount of a previous claim.

See CRA's Change or cancel your claim.

Recovery Wage Subsidy Calculation

The subsidy is calculated as:

subsidy rate x [total amount of current period remuneration for all eligible employees less the total amount of base period remuneration (Mar 14 to Apr 10, 2021) for all eligible employees]

Notes:

bulletThe amounts used in the calculation for both current period and base period remuneration cannot exceed
bullet$1,129 per week for each eligible employee
bulletif the employee is a non-arm's-length employee, the pre-crisis remuneration of the employee determined for that week
bulletif the employee is on leave with pay, $0

See the Canada Revenue Agency Math behind the CRHP subsidy calculation.

Greater of Wage Subsidy and Recovery Subsidy

Income Tax Act s. 125.7(9.2)

Both the wage subsidy (CEWS) and recovery subsidy (CRHP) must be calculated, and whichever provides the greater subsidy must be claimed.

The Income Tax Act deems the amount of the lesser subsidy to be zero, or if the CEWS and CRHP are equal, it deems the CRHP to be zero.

Thus, if the calculations for both CEWS and CRHP are equal, the employer must claim the CEWS subsidy and not the CRHP subsidy.

Canada Revenue Agency (CRA) CRHP Portal

Canada Recovery Hiring Program (CRHP)

Canada Recovery Hiring Program Frequently Asked Questions from Budget 2021

When is the CRHP Included in Taxable Income?

As with the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS), the CRHP is included in income "immediately before the end of the qualifying period to which it relates".  This provision is in S. 125.7(3) of the Income Tax Act.

See CRA's Report CRHP on your tax return.

CRHP Resources

CPA Canada webinar on the CRHP, which covers an overview of the program, online tools, application portal and more.

Revised: August 22, 2021

 

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