The first hard deadline for CEWS is just around the corner… January 31, 2021.
And, it is more important than many realize! Why?
1. Multiple periods covered
CEWS applications are due by:
the later of 180 days after the end of the period, and
January 31, 2021.
This means that the final deadline for periods 1-5 (ending August 1, 2020) is January 31, 2021.
2. Restriction on past elections
January 31, 2021 is also the final deadline to amend or revoke elections related to the revenue decline computation for those periods.
3. Restriction on future elections
As some elections affect multiple periods (such as the cash basis revenue decline method selection, and the use of January and February’s average monthly revenue as a prior period reference), the choice used in period 5 will lock in the remaining periods after this deadline passes.
4. Effect on CERS
The base CERS subsidy is largely based on the revenue decline computation of the CEWS program. Therefore, if an election is made for CEWS, and it binds all periods, then future CERS claims will be impacted.
Tip! Review all potential claim applications, as well as adjustments to prior claims, before January 31, 2021.