Federal Budget -> COVID-19 Financial Relief -> Canada Recovery Hiring Program (CRHP)
Canada Recovery Hiring Program (CRHP) For Employers
Income Tax Act s. 125.7
Canada Revenue Agency (CRA) CRHP Portal
Canada Recovery Hiring Program (CRHP) Application Portal - details on when and how to apply for the additional CRHP periods and the new wage and rent subsidies were announced on December 21, 2021.
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.
Bill C-2 was introduced on November 24, 2021, to extend the CRHP until May 7, 2022 for eligible employers with current revenue losses above 10% and increase the subsidy rate to 50%. See the November 24, 2021 News Release, and the December 21, 2021 News Release. This new legislation replaces the CEWS and CERS.
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.
For periods 22 and later, October 24, 2021 to May 7, 2022, for each claim period, employers can claim either the higher of the CRHP, or the wage portion of one of these programs:
Video Tax News article with useful links regarding the new programs.
Revenue Reduction Periods 17 to 22
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.
Use CRA's Determine Your Eligibility questions to see if you are eligible.
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.
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: December 22, 2021
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