Rent and Wage Subsidy Phase-Out Extended

Posted
August 16, 2021
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The CERS and CEWS will be available through October 23, 2021, and the current maximum 40% subsidy rate will be extended to September 25, 2021.

As businesses across the country continue to endure varied states of lockdown regulations, the Federal Government has prolonged the phase-out of several emergency support programs including the Canada Emergency Rent Subsidy (CERS) and the Canada Emergency Wage Subsidy (CEWS). Previously, the final CERS and CEWS periods were Period 20 (August 29 – September 25), with a maximum subsidy rate of 20%. Now, the 40% maximum subsidy rate from Period 19 (August 1 – August 28) will also be available for Period 20. Period 21 (September 26 – October 23) will be the final Period for CEWS and CERS with a maximum subsidy of 20%. CERS Lockdown Support also continues through Period 21 at a rate of 25%.

Additional updates for the Canada Recovery Benefit (CRB), wage subsidy for furloughed employees and revenue calculations for news businesses were also announced.

  • The CRB will be extended until October 23.
  • The wage subsidy for furloughed employees will end on August 28.
  • Organizations that were not carrying on a business on March 1, 2019, can now use the alternative approach to calculate its revenue decline for Periods 14 – 17.

While these updates are relatively simple, the CEWS, CERS, and new Canada Recovery Hiring Program (CRHP) calculations can be complex. Please reach out to your Bateman MacKay Business Advisor for any questions you may have.

New CEWS Phase-Out

Period 19Period 20Period 21
Date RangeAug 1 – Aug 28Aug 29 – Sep 25Sep 26 – Oct 23
Maximum weekly benefit per employee$452$452$226
Revenue Decline:   
70% and over40%40%20%
50-69%25% + 0.75 x (revenue decline – 50%)25% + 0.75 x (revenue decline – 50%)10% + 0.5 x (revenue decline – 50%)
>10-50%0.625 x (revenue decline – 10%)0.625 x (revenue decline – 10%)0.25 x (revenue decline – 10%)

New CERS Phase-Out

Period 19Period 20Period 21
Date RangeAug 1 – Aug 28Aug 29 – Sep 25Sep 26 – Oct 23
Revenue Decline:   
70% and over40%40%20%
50-69%25% + 0.75 x (revenue decline – 50%)25% + 0.75 x (revenue decline – 50%)10% + 0.5 x (revenue decline – 50%)
>10-50%0.625 x (revenue decline – 10%)0.625 x (revenue decline – 10%)0.25 x (revenue decline – 10%)

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