Canada Emergency Wage Subsidy Extended and Expanded

May 19, 2020

On May 15th, the Federal Government announced an extension to the Canada Emergency Wage Subsidy (CEWS) to August 29, 2020.  This announcement extends the program by 12 weeks, which was previously set to expire on June 6th. The CEWS provides eligible employers with amounts equal to 75% of employees’ remuneration paid, up to a maximum of $847 per week per employee beginning March 15, 2020.  The announcement also included additional eligible business types and proposed legislative amendments to address amalgamations and seasonal workers.  Bateman MacKay’s video walkthrough of how to apply for CEWS can be viewed here.

Approved extended eligibility includes:

  • 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.

Proposed legislative 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.

Stay in Touch!

Sign up for our newsletter and receive tax, accounting, and business advisory resources for your business!