Updated February 3, 2022
Is your company still affected by the pandemic? If so, you may be eligible for one of the following grants to cover a portion of your employees’ salaries: lhe Canadian Emergency Wage Subsidy (CESS ) or the Canadian Economic Recovery Hiring Program (PEREC).
The difference between SSUC and PEREC
Like the SSUC, PEREC provides eligible employers with an amount for each claim period.
At each claim period, these employers can claim either PEREC or SSUC, whichever is more favourable to their company.
To find out more about the Canada Emergency Wage Subsidy, read on .
Canada’s Economic Recovery Hiring Program (PEREC)
This program begins with SSUC period 17 (June 6, 2021 to July 3, 2021) and has been extended to period 28 (April 10 to May 7, 2022).
PEREC eligibility
To be eligible, the company must have seen a drop in income (i.e. of more than 0%) for period 17 and more than 10% for periods 18 to 22.
Subsidy rate
How the calculation works
You must first calculate the increase in employees’ total eligible compensation for a given period compared to the base period (period 14, i.e. March 14 to April 10, 2021). This is calculated by taking the total eligible compensation for the given period and subtracting from this amount the total eligible compensation of employees for period 14.
For example, for period 18 :
Total eligible earnings period 18 – Total eligible earnings period 14 = PEREC eligible earnings and multiply this amount by the PEREC rate (i.e. 50% in this case, since it’s period 18).
Total eligible compensation = total eligible compensation for each employee (maximum $1129 per week per employee).
Base period (period 14) :
Employee 1: $850 per week
Employee 2: $1100 per week
Total eligible compensation = ($850 + $1100) × 4 weeks = $7800
Period 18 :
Employee 1: $850 per week
Employee 2: $1100 per week
Employee 3: $1300 per week
Employee 4: $900 per week
Total eligible earnings = ($850 + $1100 + $1129 + $900) × 4 weeks = $15916
PEREC = ($15916 – $7800) × 50% = $4058
In effect, PEREC subsidizes the increase in eligible payroll for periods 17 to 28 compared with the base period (period 14). The companies that will benefit the most will therefore be those that have hired several employees from April 11, 2021.
You can use this tool to make the calculations and get more details, or contact our experts.
