The Canada Emergency Wage Subsidy has been extended by an additional 12 weeks to August 29, 2020. This is a great relief for Canadian businesses trying to keep their staff employed.
The wage subsidy, which gives eligible employers 75% of employee wages, had an original end date of June 6, 2020. The maximum benefit is $847 per employee each week.
The Government of Canada said it will also consult with key business and labour representatives over the next month on potential adjustments to the program to incent jobs and growth, including the 30% revenue decline threshold.
Finance Minister Bill Morneau also announced the approval of regulations to extend eligibility for the CEWS to the following groups:
- Partnerships that are up to 50% owned by non-eligible members;
- Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible employers;
- Registered Canadian Amateur Athletic Associations;
- Registered Journalism Organizations; and
- Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.
The Government intends to propose legislative amendments to ensure that CEWS continues to meet its objectives. The proposed amendments would:
- Provide flexibility for employers of existing employees who were not regularly employed in early 2020, such as seasonal employees;
- Ensure that the CEWS applies appropriately to corporations formed on the amalgamation of two predecessor corporations and
- Better align the treatment of trusts and corporations for the purpose of determining CEWS eligibility.
See more information on the Canada Emergency Wage Subsidy.