The work-around:
Because the Subsidy is up to $1,375 per employee (total, not per month), as long as the subsidy you take is less than the payroll taxes you would normally pay (excluding CPP/EI) you can reduce the tax payment to the government. Note the instructions from the government also indicate that you can reduce future tax payments beyond the Benefit period if applicable.
TL;DR: you can still reduce future tax payments to the government - even beyond the rebate period - if you haven't used the entire benefit.
On future payrolls, calculate your 10% of gross salary for the missed month, as well as the current month.
NOTE: The OP (original poster) made mention of blending the 10% and 75% subsidies so this may not be a straight up calculation. The CFIB has an awesome spreadsheet to assist with these more complex calculations.
Your normal payroll will look something like:
Debit Expenses (Wages, CPP/EI, Payroll Processing fees, etc)
Credit Balance Sheet (Advanced Payroll Clearing, Vacation Accrual, etc.)
Once you have established your Rebate amount you simply then perform the following transaction:
Credit Revenue (COVID Reimbursement account - remember, it's considered taxable revenue!)
Debit Advanced Payroll Clearing
Your payment would then typically look like:
Debit Payroll Clearing - one each for wages, federal tax, provincial tax, cpp/ei
Credit Bank account (or liability to Canada Revenue Agency)
Add on to this in the amount of your calculated subsidy:
Debit bank account
Credit Payroll clearing
If you have remaining room in the $1,375 per employee applicable from the payrun, but are unable to use it all because you're over the amount of federal and provincial taxes paid, then you can record the remainder as an Asset for 'unused Subsidy'
Hope this helps!
