How do you enter the refund under the Canada emergency wage subsidy, the 75 % CEWS?

Hi there, 

Times are rapidly changing for small business owners across the country in these uncertain times. I know how important it is for you to keep up with these evolving circumstances so you can maintain your books. It's our goal to provide resources to help you through this.

The new Canada Emergency Wage Subsidy (75%) will become available for applications on April 27th, 2020. As of today, we haven't released an article outlining steps for entering this into QBO, but I'd encourage you to review the articles outlined on the CRA website. 

• Changes to taxes and benefits: CRA and COVID-19

This article will outline subsidies, as well as other support news for employers.
 

I'd also recommend looking into our Webinar resources, such as the one here: An Overview of the 75% Canada Emergency Wage Subsidy and Canada Emergency Response Benefit.

I hope this helps get you started. If you have any other questions, please don't hesitate to reach out to our tech support team.

Cheers. 

Maybe I am over simplifying this… but what do you guys think of the below journal entry to balance the Emergency Wage Subsidy received?

Step 1: I created another account using similar steps for the 10% Temporary Wage Subsidy under “OTHER INCOME”, and I called it “Canada Emergency Wage Subsidy”.  If you are unsure of the steps for that, please see this link (https://quickbooks.intuit.com/learn-support/en-ca/covid-19/temporary-wage-subsidy-for-employers/01/5...)

Step 2: Add below Journal Entry for the subsidy received:

                                                                        Debit                   Credit

Bank account Name (short term asset)   $XYZ     

Canada Emergency Wage Subsidy                                        $XYZ

I don’t think we should touch the payroll expense section.  Although the subsidy is a credit / refund to payroll already issued and paid, if we reduce the payroll expense instead, it will cause the record not match to what has been submitted to CRA?