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.