Bank / Credit Union

Canadian banks help business access emergency wage subsidy

photo provided by iStock

May 8, 2020

To help businesses affected by COVID-19 gain access quickly to Canada's Emergency Wage Subsidy, Canada's banks have partnered with the Government of Canada to launch a service called CRA's My Business Account. It allows eligible businesses to register their payroll accounts for direct deposit of the CRA's subsidy payment through their own bank's business portal. Each financial institution will have a different launch day for the service.

Some businesses have already registered for the service, but others wishing to participate must first apply directly with the CRA to determine their eligibility for the emergency funding.

Employers wanting to verify that the CEWS subsidy has been deposited by the CRA can either check online through their own bank or log on to CRA's My Business Account app.

Employers can sign up for CRA direct deposit with their financial institutions even after applying for the CEWS, however businesses eligible for CEWS payment of $25 million or more must receive payment through the government's large-value transfer system and not through CRA's direct deposit program.

This initiative builds on the recent success of a similar project that helped two million Canadians receive Canada Emergency Response Benefits through direct deposit at their own financial institutions. Workers who lost income due to contracting the coronavirus, or due to job elimination or having to care for others during the pandemic received their CERB payments quickly and easily.

"Banks are working together with the federal government to get the emergency wage subsidy flowing to Canadian businesses faster, securely and more directly, rather than waiting on a physical cheque to arrive," said Neil Parmenter, president and CEO of Canadian Bankers Association, the voice of more than 60 domestic and foreign banks in Canada. "Direct deposit is a reliable and consistent way for employers to receive the funds they need to stay strong and ready to get their people back to work when we emerge from these challenging times."

For more information about how the ATM industry has been affected by the coronavirus, click here.