How do you record the entry in quickbooks for the 75% wage subsidy once the funds are received from the government?

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.

Hi,

I have quickbooks desktop.  what is the JE that needs to be made to record the wage subsidy? Do I enter the entire funds as the "subsidy income" or do i need to break it down for CPP employer and EI employer. Since those are part of the subsidy?

Thank you!

Sandra

Hi Sandra, did you ever find out an answer for this? I too am wondering.

Hi. No i still don't have an answer. Also wondering about the 10% subsidy entries.

Hello SoaresSandra,

I know recording the government subsidies in your books can be a bit tricky to figure out. I want to make sure you get the answers you need regarding both the subsidies, so I'm here to help.

When it comes to the 10% Temporary Wage Subsidy for Employers, QuickBooks Desktop has a step-by-step help article to walk you through the process of making the necessary calculations and changes in your books. Follow along with this article to make sure things are lining up as they should in your books: Temporary Wage Subsidy for Employers - How to calculate and record subsidy in QuickBooks Desktop Can...

The 75% Canada Emergency Wage Subsidy (CEWS) operates a bit differently. CEWS calculations and implementations don't require you to manipulate any of the existing numbers calculated by payroll, and applying for and submitting information about it takes place entirely outside of QuickBooks. For that reason, there isn't a step-by-step article for this subsidy option. Rather, when it comes to accounting for it in your books, we recommend speaking with an accountant. They'll have the training and insight to help you make sure it's reflected properly in your books.

Feel free to check out our Find an Accountant page if you don't already have one. The professionals listed here are QuickBooks certified, so not only do they have the accounting knowledge, but they also have the QuickBooks know-how to back you.

I hope that helps!

I just got off the phone with a senior agent at the CRA and they don't have all the answers to everything. But what I do know is you don't have to break it down as far as CPP, EI etc.  It is just a grant or subsidy income. It is based on the gross payroll amounts. So if you had 10g in payroll, and your income was down enough in comparison to the other periods the CRA has outlined the max you would get is $7500.00 back.  Come T4 time there is a box that will have to be filled out stating the company got CEWS, however the senior staff member didn't know if it was a code or monetary number.