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Canada Recovery Hiring Program (CRHP)

Which of your employees qualify

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Incremental and base period pay

The CRHP is calculated using how much your overall pay (eligible remuneration) to your employees has increased from the time of the base period of March 14 to April 10, 2021, to the time of the claim period. The base period dates are the same as CEWS claim period 14.

This change in overall pay is referred to as your incremental remuneration. To calculate this amount, you will need to know:

  • which of your employees were eligible and actively working in the claim period
  • which of your employees were eligible and actively working in the base period
  • how much your pay was for your active eligible employees

Who are eligible employees

Generally, employees who are eligible for the CEWS are eligible for the CRHP, including arm's-length and non-arm's-length eligible employees.

Eligible employees

An eligible employee is a person who was employed by you (the eligible employer) primarily in Canada throughout the claim period.

Employee eligibility depends on the person being physically employed in Canada.

Read more about employee eligibility in the CEWS FAQs.

Arm’s-length and non-arm's-length eligible employees

You will be asked whether an employee is arm’s length or not when you calculate your subsidy amount, because the subsidy is calculated differently for eligible non-arm’s-length and arm’s-length employees.

Arm's-length employees

For most small businesses, workers are usually arm’s-length employees unless they are an owner or an owner’s family member.

Non-arm's-length employees
In a small business, a non-arm’s-length employee would most often be:

  • a business owner
  • a member of an owner’s immediate family (for example, a spouse, parent, child, sibling, grandparent, or grandchild)

It’s possible (but less common) for a non-arm’s-length employee relationship to exist between unrelated people, depending on the circumstances.

If you’re not sure about whether an employee is considered arm’s length or non-arm’s length, or have a business involving more complex control (like a corporation, trust, or partnership), you can read more about specific relationships that are considered non-arm’s length.

However, amounts for employees who were on leave with pay are not included in the CRHP calculation.

Active employees and employees on leave with pay

Only eligible remuneration paid for weeks where your employees were active are considered in your CRHP calculation. This includes calculations for the base period (March 14 to April 10, 2021) and the claim period remuneration.

Active employees
Are employees who worked for any part of a week during the claim period.
Employees on leave with pay
Are employees who were temporarily furloughed for one or more full weeks in the claim period but were still receiving pay for those weeks. To be considered on leave with pay for a week within a claim period, an employee must:
  • not have worked at all during the full week
  • not have been on paid absence (such as vacation leave, sick leave, or a sabbatical)
  • have received full or partial pay from you for the week
  • have been in an employer-employee relationship with you at the time (they were not terminated)

Whether an eligible employee is active or on leave with pay is determined on a week-by-week basis and used in the online calculator and downloadable spreadsheet.

Determining employee pay (eligible remuneration)

The type of pay that is considered eligible remuneration, and how you determine the pay for each week, is the same for the CRHP as the CEWS.

However, amounts for employees who were on leave with pay are not included in the CRHP calculation.

For the CRHP, there are three time periods you will need to know the pay amounts for your active eligible employees:

  • each week of the 4-week claim period you are applying for
  • each week of the 4-week base period (March 14 to April 10, 2021)
  • for non-arm's-length employees, the average weekly amount for the pre-crisis period
Eligible remuneration and calculating weekly pay

Eligible remuneration is normally the type of employee pay you would make payroll deductions on.

Included: Option 1 of 2

Eligible remuneration includes amounts such as:

  • salary
  • wages
  • certain taxable benefits
  • fees and commissions

Not includedOption 2 of 2

Eligible remuneration does not include amounts such as:

  • severance pay
  • stock option benefits
  • dividends
  • tips customers gave directly to the employee
  • non-cash taxable benefits, such as the personal use of a corporate vehicle

Read more about specific items included in eligible remuneration in the CEWS FAQs

Claim period pay per week

For all eligible employees, you will need to know how much eligible remuneration you paid them in respect of each week in the claim period. They must have received their pay before you apply for the subsidy.

If your pay schedule doesn’t align with the claim period dates, you will have to manually calculate how much you paid the employee in respect of each week. It doesn’t matter whether the employee receives their paycheque at the end of the week, at the end of the month, or another time, as long as you use the actual amount they were paid that relates to that week. You can’t use an average of daily wages.

If you pay employees weekly or bi-weekly, you can use the calculator spreadsheet to enter your employees’ pay.

Read about how to calculate weekly remuneration for different payroll schedules in the CEWS FAQs

Calculate the pre-crisis pay (baseline remuneration)

For the CRHP, you only need to calculate pre-crisis pay for non-arm's-length eligible employees.

Pre-crisis pay (baseline remuneration) is an average amount of eligible remuneration the employee received in a week during a specific period before March 15, 2020.

There is more than one pre-crisis pay period option you may use when calculating an employee’s pre-crisis pay for a claim period. To get the most potential benefit, choose the pre-crisis pay period that has the highest weekly average for that employee.

If you have hired new eligible employees who did not work for you prior to March 15, 2020, their pre-crisis pay will be $0.

Pre-crisis pay period options per claim period
Period Pre-crisis pay period options (number of days in period)
CRHP base period (CEWS claim period 14)
  • January 1 to March 15, 2020 (75 days)
  • March 1 to June 30, 2019 (122 days)
  • July 1 to December 31, 2019 (184 days)
  • if the employee was on certain kinds of long-term leave from July 1, 2019, to March 15, 2020, the 90-day period ending before the leave started
Claim period 17
  • January 1 to March 15, 2020 (75 days)
  • March 1 to June 30, 2019 (122 days)
  • July 1 to December 31, 2019 (184 days)
  • if the employee was on certain kinds of long-term leave from July 1, 2019, to March 15, 2020, the 90-day period ending before the leave started
Claim periods 18 to 22
  • January 1 to March 15, 2020 (75 days)
  • July 1 to December 31, 2019 (184 days)
  • if the employee was on certain kinds of long-term leave from July 1, 2019, to March 15, 2020, the 90-day period ending before the leave started

Calculate the pre-crisis pay amount

  1. Total all the remuneration paid to the non-arm's-length employee during the chosen pre-crisis pay period
  2. Divide the total pay by
    • the number of weeks or partial weeks to which the total pay relatesFootnote 1, minus any period of 7 or more consecutive days for which the employee was not paid
Example of calculating a non-arm's-length employee’s pre-crisis pay amount

ADC Ltd. paid Issa $7200 between January 1 and March 15, 2020, covering a 10-week period.

During those 10 weeks, Issa took 1 week unpaid leave.

Calculation of Issa’s pre-crisis pay amount

  • Issa’s total remuneration: $7200
  • Total weeks in period: 10 weeks
  • Minus: 1 week unpaid leave

Issa’s pre-crisis pay (baseline remuneration) is:

  • $7200/divided by9 = $800

More information and examples about how to calculate pre-crisis pay (baseline remuneration) in the CEWS FAQs

The online calculator or downloadable spreadsheet will help you calculate your CRHP or CEWS amount, once you've collected the pay information you need to enter.

Or, read the detailed math for the CRHP calculation

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