Published: April 27, 2020
Canada’s financial ecosystem has responded with priority to the Government of Canada’s need to support a fast, safe and secure way for Canadian employers to receive funding from the Canada Emergency Wage Subsidy (CEWS) plan, to assist Canadian businesses affected by COVID-19.
“As the government prepares to send out millions of dollars of payments in the next few months, direct deposit is a faster, safer and more secure way for Canadians to receive these government payments,” said Tracey Black, Payments Canada’s President and CEO. “We are pleased to play a facilitation role for regulators and our member financial institutions to support this new initiative that will ensure Canadian business employers receive emergency benefits quickly and securely.”
Similar to the ecosystem’s response to Canada’s Emergency Response Benefit plan, a number of financial institutions are now providing the option for Canadian employers to enrol online in CRA Direct Deposit. It is expected that the number of financial institutions that can support this capability will grow in the coming weeks. Payments Canada has supported this initiative, playing a facilitation role for regulators and our member financial institutions.
The ecosystem has also come together to help promote awareness of the advantages of direct deposit for eligible CEWS applicants to receive benefit funds rather than by cheque. Direct deposit facilitates the electronic transfer of funds for deposit directly into a bank account, a faster, more convenient and more secure option.
The Canada Revenue Agency (CRA) application process for CEWS funding opened today, April 27, 2020. CEWS claims will be subject to verification by the CRA, therefore the CRA will begin to release funds for approved applications starting on May 5, 2020.
For further information please, visit Canada.ca/cra-direct-deposit or the website of your financial institution.