CEWS!!! Manual calculation of wages and CPP/ EI

Question

We pay employees either monthly or semi monthly depending on their role. Does anyone know an easy way to calculate the CEWS weekly wages other than going back and manually figuring hours worked / to fit in the weekly dates required by CRA? I will also need to recalculate cpp and ei based on a manual calculation of their pay. There must be something easier. My accountant cant help

Alwyn · Answer

For CEWS there is no need to recalculate the CPP and EI as neither figure into the accounting for this subsidy. If you are starting to claim from Period 1 the law is very clear that you will have to figure the daily rate based on the pre-Covid period of January 1 to March 17 and use this as the base. If the employees are salaried it is relatively easy to calculate a weekly equivalent and then use that amount for each week of claim. If the pay varies due to bonuses or hours worked you will have to recalculate based on hours for each week of each Period. Yes, it is a lot of extra work but for 75% (in the first four Period) as a subsidy it is worth it.

Marj@Swab · Answer

I agree with Alwyn, it is a lot of work but must be done. I am fortunate in one way with our monthly paid employees I do a spreadsheet for each employee that breaks it down by days because we have so many different pay rates and groups like regular, overtime, shop, travel etc. So now to do the CEWS I draw lines on the spreadsheets breaking it down by the CEWS weeks required, do the rate calculations (including vacation pay) and plug those numbers into the CEWS Spreadsheet that they provide. It takes me a full day to do it but at least I know I have the amounts down to the penny just in case CRA decides to do an Audit!. Good luck with whatever you choose but like Alwyn said it is worth it.

Sage 50 Canada

CEWS!!! Manual calculation of wages and CPP/ EI

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