Wage Subsidy Extended – Eligibility Expanded
Finance Minister Bill Morneau announced that the Government of Canada will extend the Canda Emergency Wage Subsidy (CEWS) by an additional 12 weeks to August 29, 2020. The program covers 75% of an employee’s wages – up to $847 per week – for eligible employers.
The Government will be consulting with key business and labour representatives on potential adjustments to the program to incent jobs and growth, including the 30 per cent revenue decline threshold.
In addition, Minister Morneau also announced the approval of regulations to extend eligibility for the CEWS to ensure that it continues to support those employers and workers hardest hit by the COVID-19 pandemic, and protects the jobs Canadians depend on. These regulations extend eligibility for the CEWS to the following groups:
- 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; 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 also intends to propose legislative amendments to ensure that the CEWS continues to meet its objectives. These 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.