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CERB, CEWS, EI – Turning Alphabet Soup Into Cash

Should my employees apply for EI or CERB?

  • Qualifying for EI will result in receiving up to 55% of previous eligible earnings, maxing out at $573 per week.
  • Qualifying for CERB will result in a monthly sum of $2000 per month.
  • Determining which route would be best is determined by how much the individual makes.

Does your employee make more than $909 weekly or $47,272 annually?

YES Employment Insurance is the better route for this employee, with the higher take-home amount

NO – the Canada Emergency Response Benefit (CERB) is the better route with the higher take-home amount

What will it mean to retain staff through the Canada Emergency Wage Subsidy, (CEWS)?

  • If considering wage reductions in addition to applying for CEWS, the reductions should be implemented prior to applying to CEWS.
  • The government will cover 75% of an employee’s weekly income up to a maximum subsidy of $847 per week. The employer pays the other 25%.
  • Employers will be responsible for 100% of an employee’s wages after the maximum benefit of $847/week is reached.

Does your employee make more than $1129/week or $58,708.00 annually?

YES – The CEWS will provide the maximum benefit of $847/week and the employer will be responsible for remainder of the wage.

NO – The CEWS will provide a full 75% subsidy of the employee’s wages. Employers are responsible for covering the remaining wage

If it is a priority to maintain as many staff as possible, it is in the employer’s best economic interest to release higher-paid employees or negotiate a lower wage prior to applying for CEWS.

Written By Ceileigh Cunningham

Ceileigh is a Technical Writer and Project Analyst at SJE Consulting. With a background in education and public programming, she is passionate about creating clear understanding and communication.

Posted to: COVID19

April 14, 2020

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