CEWS extension to December 19, 2020
The government has released proposed draft legislation that would not only extend Canada Emergency Wage Subsidy (CEWS) until December 19, 2020, but would significantly redesign the CEWS program through to November 21, 2020. The reason for the changes? The government has stated their objectives; to prevent further job losses and encourage employers to quickly rehire workers previously laid off as a result of COVID-19, focusing more closely on businesses that need the support.
The changes outlined in the draft legislative proposals would apply to for Period 5 to Period 9 (beginning July 5 and ending November 21st). The same eligibility criteria for the initial three claim periods (March 15 to June 6, 2020) would continue to apply for Period 4 (June 7 to July 4, 2020).
Effective July 5, 2020, the CEWS would consist of two parts:
• a base subsidy available to all eligible employers that are experiencing a decline in revenues, with the subsidy amount varying depending on the scale of revenue decline; and
• a top-up subsidy of up to an additional 25% for those employers based on a scale of decline in average revenues over a specified period.
For more information, please visit CRA’s website at this link, or contact our office. We continue to monitor the status of the proposed draft legislation.
The analysis and application of the CEWS program are complicated and require care to ensure your business is receiving the optimal benefits in this difficult time. We are happy to assist.