Sussex Government Announces Extension to Canada Emergency Wage Subsidy

Today, the federal government announced an extension of the Canada Emergency Wage Subsidy (CEWS) by three months to August 29, 2020 (initially in place from March 15 to June 6, 2020).

The Government also made regulatory changes to extend eligibility of the CEWS to additional groups, provided they meet all other eligibility criteria. These changes are effective immediately and are retroactive to March 15, 2020.

The following groups now qualify for the CEWS

• Partnerships that are up to 50-per-cent 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.
• Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.

Finance Minister Bill Morneau also outlined proposed legislative amendments to further expand participation in the program. These changes would be required to pass Parliament before coming into effect.

‍Proposed Legislative amendments

• ‍‍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.
• Better align the treatment of trusts and corporations for the purpose of determining CEWS eligibility.

The Government will continue consultations with businesses and labour groups over the next month on potential additional adjustments to the program including the current 30% revenue decline threshold.

To apply for the CEWS, go to https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html.

Federal Engagement‍

Consult the Sussex COVID-19 Guide for information on supports made available across the Federal, Provincial and Municipal Governments.

As the details of the programs announced today become available, let Sussex help connect you with the right people in government to help your organization get through these extraordinary times.

Please reach out to your Sussex representative directly or to a member of the Federal Government Relations Team.