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:
Individuals, registered charities, and non-profit organizations which are eligible for the CEWS are also eligible for the CRHP.
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.
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.
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]
See the Canada Revenue Agency Math behind the CRHP subsidy calculation.
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 Frequently Asked Questions from Budget 2021
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.
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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