The federal government has provided more details regarding the Canada Emergency Wage Subsidy (CEWS) program. There are increased amounts and lower thresholds.
Canada Emergency Wage Subsidy (CEWS)
On July 17, 2020, Finance Minister Bill Morneau announced the following regarding CEWS:
It will be available to the end of December 19, 2020; and
For periods July to November, 2020:
The 30% revenue reduction requirement will be reduced to “any reduction”; and
There will be up to a 25% additional subsidy if the revenue decline is greater than 50%. This is capped at $960 per employee per week. These numbers change over the periods.
Base Subsidy for All Employers Impacted by the Crisis
The base CEWS will be a specified rate, applied to the amount of remuneration paid to the employee for the eligibility period, on remuneration of up to $1,129 per week. The rate of the base CEWS will now vary depending on the level of revenue decline, and its application will be extended to employers with a revenue decline of less than 30%.
The maximum base CEWS rate will be provided to employers with a revenue drop of 50% or more.
The maximum base CEWS rate will be gradually reduced from 60% in Period 5 and Period 6 (July 5 to August 29, 2020) to 20% in Period 9 (October 25 to November 21, 2020).
Top-Up Subsidy for the Most Adversely Affected Employers
A top-up CEWS of up to 25% will be available to employers that are the most adversely impacted by the pandemic. Generally, an eligible employer’s top-up CEWS will be determined based on the revenue drop experienced when comparing revenues in the preceding three months to the same months in the prior year.
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Caveat: The information in this publication is current as of the time it was written. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Deuzeman & Associates to discuss these matters in the context of your particular circumstances. Deuzeman & Associates does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.