In an update to the previously announced Canadian Emergency Wage Subsidy (CEWS), on April 8, 2020, the Federal Government announced certain modifications to the CEWS program to relax the qualification criteria. Previously, a business, Charity or Not-For-Profit organization had to show a 30% decline in revenues in March, April or May compared to the same month from 2019. Subsequent to the April 8, 2020 announcement, businesses may be eligible for CEWS for the month of March if they show a 15% decline in March 2020 revenues as compared to March 2019 revenues. In addition, businesses can elect to compare their average revenue from January and February of 2020 in determining the decline in revenues for CEWS purposes. Charities and Not-For-Profit organizations can choose whether they include revenues from governments in their revenue calculations as it relates to CEWS. The precise details and mechanics of the newly revised CEWS will be clarified upon introduction of draft legislation which has yet to be released.
The Federal government also announced that they will cover 100% of wages for students hired under the Canada Summer Jobs Program and the eligible employment date is extended to February 28, 2021.
|Wage Claiming Period||March 15 – April 11||April 12 – May 9||May 10 – June 6|
|Revenue Comparison Period||March 2020 over March 2019OR|
March 2020 over January and February 2020 average
|April 2020 over April 2019OR|
April 2020 over January and February 2020 average
|May 2020 over May 2019|
May 2020 over January and February 2020 average
|Minimum Revenue Decline Required||15%||30%||30%|
Sign up for our newsletter and receive tax, accounting, and COVID-19 resources for your business!