I’ve been getting questions about a CEWS-SRED calculator from accountants, finance guys and a few owners for several months. We now (finally) have some really exciting news on this topic!
If you’re one of the four companies in Canada who received no CEWS assistance from the feds during 2020, please stop reading. Sorry for bugging you!
Still here? Great! G6 Consulting now has the first publicly available CEWS-SRED calculator in Canada.
Maybe this shouldn’t shock me, but the feds themselves don’t have a CEWS-SRED calculator today. At least not that they will share with us.
The CRA says you must subtract any CEWS you’ve received in your 2020 fiscal from your 2020 SRED salary expenditures in a “reasonable” fashion. See the original notice here, in the government’s [2020-06-25] post on the “What’s new – SR&ED Program” site.
Without a calculator, you will be over-deducting CEWS from your SRED claim. Hundreds of companies with March and April year ends have already done this and it has cost them a lot of lost SRED credits.
So, this calculator gives you your exact scaled CEWS deduction for your 2020 SRED. And it tells you how much you saved by not deducting the entire CEWS you received during your 2020 fiscal. This may be tens of thousands of dollars in saved SRED credits.
The calculator is simple to use. Upload your actual CRA CEWS 1-11 period spreadsheets into the calculator, however many periods you received money that overlap your FY. Select your weekly or bi-weekly CEWS report type. Upload your SRED project costs for FY2020. (If you have your G6 “Client Costs and Projects” SRED sheet handy, or if I’m helping you, this is one copy and paste).
And that’s it. You have your numbers.
The calculator is available now for download here. Check back regularly because the calculator is updated frequently to keep up with ongoing CEWS changes (eg the Dec CEWS spreadsheet from the gov’t isn’t final, we’ll soon get a January CEWS sheet, etc. ). Hopefully we’ll have an automated update notice service soon, but for now send an email to firstname.lastname@example.org with the subject line: “Keep my g6 CEWS-SRED calculator updated!”. I’ll get you on a list that will email you when there’s a new calculator download available. No other spam. No sales rep will call.
If you received CEWS and you’ve already filed a 2020 SR&ED claim with a March 31st or year end, chances are your SRED credits were reduced incorrectly tens if not hundreds of thousands of dollars! Don’t despair, call G6 Consulting! We can easily get your proper SRED credits restored to you using the CEWS-SRED calculator and by making an administrative amendment on your behalf with the CRA.