Federal Government Announces Proposed Extension and Changes to Canada Emergency Wage Subsidy

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Federal Team

Today, Finance Minister Bill Morneau announced a proposed extension of the Canada Emergency Wage Subsidy (CEWS) until December 19, 2020, including redesigned program details until November 21, 2020. The details of the program between November 22nd and December 19th remain to be defined.

The proposed changes would allow employers who face less than a 30% reduction in revenues to qualify for CEWS by providing a gradually decreasing base subsidy to all employers that can show a drop in revenue of any magnitude. The proposed changes also introduce a top-up subsidy of up to an additional 25% for employers that face a revenue decline greater than 50%. This proposal also provides certainty to employers that have already made business decisions for July and August by ensuring they will not receive a subsidy rate lower than they would have had under the previous rules (e.g. 75%).

The changes to the CEWS will require enacting legislation in Parliament, which is expected to be introduced next week.

We recommend consulting the Finance Canada background document for further details on the proposed CEWS changes:

https://www.canada.ca/en/department-finance/news/2020/07/adapting-the-canada-emergency-wage-subsidy-to-protect-jobs-and-promote-growth.html

In addition, Sussex staff are on hand to answer any specific questions you might have regarding this increasingly complex program.

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