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.
Should you have any questions or feedback, please reach out to myself or the team. As always, we are here to help and support you.