Changes Proposed for Canada Emergency Wage Subsidy

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July 20, 2020

Finance Minister Bill Morneau has announced proposed changes to the Canada Emergency Wage Subsidy (CEWS) that, if approved, will take place effective July 5th.

The proposal would:

  • Extend the CEWS until December 19, 2020, including redesigned program details until November 21, 2020.
  • Make the subsidy accessible to a broader range of employers by including employers with a revenue decline of less than 30 percent
  • Provide a gradually decreasing base subsidy to all qualifying employers.
  • Introduce a top-up subsidy of up to an additional 25 percent for employers that have been most adversely affected by the pandemic.

These proposed changes follow consultations with business and labour representatives on potential adjustments to the CEWS program aimed at ensuring that it continues to protect jobs and promote growth.

How it works:

  • All eligible employers with a revenue decline are eligible (don’t need a loss of 30% or more)
  • The base subsidy will align with monthly revenue losses (if you lost 20% in July, your subsidy is based on that 20%)
  • The maximum base rate will be gradually reduced from 60% to 20%
  • Program continues until December 19
  • Top up subsidy available for businesses with 3 month average revenue loss of more than 50%

The new CEWS is somewhat complex so please read the backgrounder for more information

Canada Emergency Wage Subsidy changes

Effective July 5th, the Canada Emergency Wage Subsidy has changed.- All eligible employers with a revenue decline are eligible (don't need a loss of 30% or more)- The base subsidy will align with monthly revenue losses- The maximum base rate will be gradually reduced from 60% to 20%- Program continues until December- Top up subsidy available for businesses with 3 month average revenue loss of more than 50%More information at www.tbchamber.ca/covid19

Posted by Thunder Bay Chamber of Commerce on Tuesday, July 21, 2020

 

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