Updated Checked by the Tax-Services.ca editorial team How we check
Employee retention credits are an American program, and the IRS says it has ended. It covered wages paid between March 13, 2020 and December 31, 2021, and no new claims can be filed. Canadian employers never had a credit under that name. If you run a business here, the closest thing was a set of COVID wage subsidies, and the CRA lists all of them as closed.
We’re assuming you landed here from a search for the US credit, or from an ad that used the term. Either way, the useful question for a Canadian employer is what keeping staff costs today.
What was the employee retention credit?
The IRS describes it as a refundable tax credit for certain eligible businesses and tax-exempt organizations, tied to qualified wages. The window ran from March 13, 2020 to December 31, 2021, though for 2021 it mostly covered the first three quarters. The IRS gives April 15, 2024 as the last day to claim 2020 wages and April 15, 2025 for 2021 wages.
So a Canadian company can’t use it. A US branch or a US-registered employer is a different matter, and that belongs with a US adviser.
What did Canada have instead?
Five programs, and according to the CRA’s page on past subsidies every one of them is now closed, which means nothing new can be claimed under any of them.
| Program | Short name | Status |
|---|---|---|
| Canada Emergency Wage Subsidy | CEWS | Closed |
| Canada Emergency Rent Subsidy | CERS | Closed |
| Tourism and Hospitality Recovery Program | THRP | Closed |
| Hardest-Hit Business Recovery Program | HHBRP | Closed |
| Canada Recovery Hiring Program | CRHP | Closed |
We haven’t quoted subsidy rates or claim deadlines, because the CRA page we read covers eligibility only. It says nothing on how long you must keep the paperwork for these particular programs or how reviews work. If you claimed one of these, check the CRA directly before you throw anything out. As a general rule the CRA’s records guide says to keep business records for six years from the end of the last tax year they relate to.
Say Marie ran a small café in Halifax and claimed wage support in 2021. Her double-double sales are back to normal, but the payroll records behind that claim still belong in a labelled folder, not the recycling bin.
Is any retention credit for employers open now?
We didn’t find a federal credit called that on the CRA pages we read. Provinces and territories run their own programs, and we haven’t checked each one, so look at your provincial site. Be wary of anyone who says you qualify without looking at your books. The IRS itself warns that some promoters say every employer qualifies, which isn’t true, and it lists pushy marketing and large upfront fees as red flags. Same advice for any subsidy pitch. Anywhere.
A few signs that a pitch deserves a pass: a fee that depends on how big a refund they can find, a promise before anyone has seen a payroll record, and pressure to sign today. A real adviser asks for your numbers first and the sales talk second.
What does keeping an employee actually cost?
This is the number you can work with. Take one Ontario employee paid $3,000 every two weeks. The payroll remittance calculator shows $732.62 held back from the pay and $228.41 added by the employer, so you remit $961.03 each period and the cheque really costs $3,228.41.
Now a raise. On $65,000 in Ontario, a 5% raise is $3,250 before deductions. The salary increase calculator says the employee keeps $2,090.40 of it, or 64.3 cents per extra dollar. You pay the full $3,250 plus your share of CPP and EI, and they keep about two thirds. So the cost to you and the gain to them are not the same number, and that’s worth knowing before you promise a figure to anyone. A $5,000 bonus on an $80,000 salary leaves $3,376.80 with the employee, according to the bonus tax calculator.
What stays out of these figures? Workers compensation and other payroll levies. The remittance tool leaves them out, and for some businesses they’re real money. Our hiring and paying staff page lists the other costs that come with a first employee.
Where this information comes from
The program dates and warnings come from the IRS page on the Employee Retention Credit and the CRA page on past subsidies, both read on 2026-09-30. Payroll rates come from the 2026 contribution tables in our calculators. This site has no link with the CRA, the IRS or any government.
Frequently asked questions
Can a Canadian business claim employee retention credits?
No. It's a US program run by the IRS, and the IRS says it has ended.
Which Canadian wage subsidies existed?
CEWS, CERS, THRP, HHBRP and CRHP. The CRA lists them all as closed.
Is there a federal retention credit in Canada now?
We didn't find one on the CRA pages we read. Check your provincial or territorial site too.
How do I check a subsidy claim pitch?
Ask what the offer is based on and refuse any fee before someone has looked at your books. The IRS lists upfront fees and pressure as red flags.
What does one employee cost me in remittances?
For $3,000 every two weeks in Ontario, you remit $961.03 per pay period and the total cost is $3,228.41.
- Canadian tax credits and government benefits explained
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