Canada Emergency Wage Subsidy (CEWS) Extension and Other Updates
- Extension of the CEWS until December 19, 2020 including redesigned program details until November 21, 2020.
- Make subsidy available to employers with a revenue decline of less than 30% and provide a gradually decreasing base subsidy to all qualifying employers.
- Introduce a top-up subsidy of up to an additional 25% for employers that have been adversely affected by the pandemic.
- Provide assurance to employers that have already made business decisions for July and August that they will not receive a subsidy lower than they would have under the previous rules.
- Address certain technical issues identified by stakeholders.
- Base subsidy - available to eligible employers experiencing a decline in revenues with the subsidy amount varying depending on the scale of revenue decline. This base CEWS would 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. This would also apply to employers with a revenue decline of less than 30%.
- Top-up subsidy – up to an additional 25% for employers adversely affected by the pandemic. Employers that have experienced a 3- month average revenue drop of more than 50% would receive this top-up CEWS rate equal to 1.25 times the average revenue drop that exceeds 50%, up to a maximum top-up CEWS rate of 25%, which is attained at a 70% revenue decline. The top-up CEWS rate would also apply to remuneration of up to $1,125 per (same with the base CEWS rate).
Note: The Canada Emergency Wage Subsidy is different from the 10% Wage Subsidy. The 10% Wage Subsidy ended last June 2020 (eligible period was from March 18, 2020 to June 19, 2020).
Source: https://www.canada.ca/en/department-finance.html, https://www.canada.ca/en/department-finance/news/2020/07/adapting-the-canada-emergency-wage-subsidy-to-protect-jobs-and-promote-growth.html