In a March 29, 2021 Technical Interpretation (2020-0865791I7, Sylvie Danis), CRA commented on the CEWS implications relating to retroactive wages, wages only reflected by journal entry, and wages received that were re-loaned to the corporation. In particular, CRA states:
“where salary and wages are paid to an eligible employee and returned to the eligible employer with a corresponding increase or credit to a due to shareholder loan account or other shareholder loan account, we consider such salary or wages would not be eligible remuneration for purposes of the CEWS pursuant to paragraph (c) of the definition of that term in subsection 125.7(1).”