Skip to content

Important updates announced to Canada Emergency Wage Subsidy program

Richard Jordan

On April 8, 2020, the Government of Canada provided employers with further information about – and revisions to – the Canada Emergency Wage Subsidy (CEWS) program.

Last week, the Government of Canada announced:

  • CEWS provides all employers, who see a 30% or more decline in gross revenues since the same time last year, with a wage subsidy of up to 75% for the first $58,700 of eligible remuneration that an employee earns, up to a maximum of $847 per week.
  • The CEWS is a 12-week program, retroactive to March 15, 2020 and ending on June 6, 2020.  Employers will need to reapply each month.
  • Employers will need to attest that they are doing everything they can to pay the remaining 25% of each employee’s income.

Yesterday, the Government of Canada announced some modifications to the CEWS program, including:

  • For the month of March, employers will now only have to show a 15% decrease in revenues (rather than 30%), because many businesses did not begin to be affected by the COVID-19 crisis until partway through the month (For April and May, employers will still have to show a 30% decrease in revenues).
  • To measure revenue loss, all employers will now have the option of comparing their revenues for March, April and May 2020 either to those of the same month in 2019, or to an average of their revenues earned in January and February 2020.
  • Employers will be allowed to measure revenues either on the basis of accrual accounting (as they are earned) or cash accounting (as they are received).  Businesses are being permitted to make this choice because the time between when revenue is earned and when it is paid can be highly variable in certain sectors of the economy.
  • The Government of Canada proposes to introduce a new 100% refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. This refund would cover 100 per cent of employer-paid contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees.
  • Charities and non-profit organizations will be allowed to choose to include or exclude government funding in their revenues for the purpose of applying the revenue reduction test.

Further information about the changes to the CEWS announced yesterday can be found at the Department of Finance’s website.

The Government of Canada continues to consult with the opposition parties about a date to recall Parliament to pass further COVID-19 legislation, including the CEWS, but no date has yet been confirmed.


This article is provided for general information only. If you have any questions about the above, please contact a member of our Labour and Employment group.

Click here to subscribe to Stewart McKelvey Thought Leadership articles and updates.

SHARE

Archive

Search Archive


 
 

TTC’s Random Testing Decision: A Bright Light for Employers in the Haze of Marijuana Legalization

April 11, 2017

Rick Dunlop In my December 15, 2016 article, Federal Government’s Cannabis Report: What does it mean for employers?, I noted the Report’s1 suggestion that there was a lack of research to reliably determine when individuals are impaired…

Read More

Unionization in the Construction Industry: Vacation Day + Snapshot Rule = Disenfranchisement

April 4, 2017

Rick Dunlop and Michelle Black On March 14, 2014, CanMar Contracting Limited (“CanMar”) granted a day off to two of its hard working and longer serving employees so they could spend time with their respective families. That…

Read More

Sometimes a bad deal is just a bad deal: unconscionability and insurance claim settlements in Downer v Pitcher, 2017 NLCA 13

March 16, 2017

Joe Thorne and Meaghan McCaw The doctrine of unconscionability is an equitable remedy available in exceptional circumstances where a bargain between parties, be it a settlement or a release, may be set aside on the basis that…

Read More

Privilege Prevails: Privacy Commissioner protects solicitor-client communications

March 16, 2017

Jonathan Coady After more than five years, the Prince Edward Island Information and Privacy Commissioner (the “Privacy Commissioner”) has completed her review into more than sixty records withheld by a local school board on the…

Read More

The Latest in Labour Law: A Stewart McKelvey Newsletter – Nova Scotia Teachers Union & Government – a synopsis

March 7, 2017

Peter McLellan, QC & Richard Jordan Introduction On February 21, 2017 the Nova Scotia Government passed Bill 75 – the Teachers’ Professional Agreement and Classroom Improvement (2017) Act. This Bulletin will provide some background to what is, today,…

Read More

Scotia Mortgage Corporation v Furlong: The Supreme Court of Newfoundland and Labrador weighs in on the former client rule in commercial transactions

March 1, 2017

Bruce Grant, QC and Justin Hewitt In the recent decision of Scotia Mortgage Corporation v Furlong1 the Supreme Court of Newfoundland and Labrador confirmed that where a law firm acts jointly for the borrower and lender in the placement…

Read More

The Ordinary Meaning of Insurance: Client Update on the SCC’s Decision in Sabean

February 21, 2017

The Supreme Court of Canada released its decision in Sabean v Portage La Prairie Mutual Insurance Co, 2017 SCC 7 at the end of January, finally answering an insurance policy question that had divided the lower…

Read More

Client Update: Outlook for the 2017 Proxy Season

February 8, 2017

In preparing for the 2017 proxy season, you should be aware of some regulatory changes and institutional investor guidance that may impact disclosure to, and interactions with, your shareholders. This update highlights what is new…

Read More

Client Update: The Future of Planning and Development on Prince Edward Island – Recent Amendments to the Planning Act

January 23, 2017

Perlene Morrison and Hilary Newman During the fall 2016 legislative sitting, the Province of Prince Edward Island passed legislation that results in significant changes to the Planning Act. The amendments received royal assent on December 15, 2016 and…

Read More

Plaintiffs’ medical reports – disclosure obligations in Unifund Assurance Company v. Churchill, 2016 NLCA 73

January 10, 2017

Joe Thorne1 and Justin Hewitt2 In Unifund Assurance Company v Churchill,3  the Newfoundland and Labrador Court of Appeal considered the application of our rules of court and the common law as they relate to disclosure of documents produced in…

Read More

Search Archive


Scroll To Top