5. Is CEWS considered assistance for purposes of the Ontario tax credits?
The Canada Emergency Wage Subsidy (CEWS) is a subsidy program offered by the federal government to qualifying employers. The main purpose of the CEWS is for employers to keep employees on payroll during the COVID-19 crisis so as to reduce employees’ reliance on the Employment Insurance regime. CEWS is considered government assistance for purposes of the Ontario tax credits. Where a company has received CEWS for employees, and the company is claiming salaries and wages for those same employees as qualifying labour expenditures for tax credit purposes, CEWS will be considered government assistance and will reduce the net eligible expenditures upon which the tax credit is calculated.