Banks facilitate access to CEWS through CRA direct deposit
by CM Staff
Business customers are encouraged to enroll in direct deposit for quick and direct access to the CEWS
TORONTO – Canada’s banks have partnered with the Government of Canada to expedite access to the Canada Emergency Wage Subsidy (CEWS) for businesses affected by COVID-19.
A new service allows eligible businesses to register their business payroll accounts for direct deposit with the Canada Revenue Agency (CRA) directly
The launch date of each financial institution’s CRA direct deposit services will vary. Businesses must first determine if they are eligible for the CEWS and apply directly with the CRA.
Starting May 4, employers signed up for direct deposit with the CRA will be able to receive their emergency wage subsidy quickly and securely to a Canadian business operating account at a Canadian financial institution.
Business payments made through direct deposit should begin to appear in employers’ accounts as of May 7 and can be verified by checking online bank statements, or by logging into CRA’s My Business Account.
“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, Canadian Bankers Association president and CEO, in a prepared statement. “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.”
Employers can sign up for CRA direct deposit with their financial institutions even after applying for the CEWS. Businesses eligible for CEWS payment of $25 million or more, however, must receive their payment through the large value transfer system (LVTS), not through CRA direct deposit.
Nearly two million Canadians have enrolled through their financial institution for CRA direct deposit of CERB payments, which represents roughly 82% of all payments under this program.