The federal government has released additional information about the Canada Emergency Wage Subsidy (CEWS) program, following initial updates provided in March and on April 1.
More information has been provided on what constitutes an eligible employer, which is described as individuals, taxable corporations, and partnerships consisting of eligible employers, non‑profit organizations, and registered charities.
The program offers a wage subsidy at a rate of 75 per cent of the first $58,700 normally earned by employees, equivalent to up to $847 per week. Details provided on April 1 by the federal government originally stated that the CEWS program is available to employers that have suffered a decrease in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019.
New information indicates that the program is available to eligible employers that experienced a decline of at least 15 percent of their revenue in March 2020, and 30 per cent for the following months (April and May). The program is available to employers for up to a 12-week period, and is retroactive to March 15, 2020.
For eligible claiming periods, the first period is from March 15 to April 11, and requires a reduction in revenue of 15 per cent when compared to March 2019 or the average of January and February 2020.
The second claiming period is from April 12 to May 9, and requires a reduction in revenue of 30 per cent of when compared to April 2019 or the average of January and February 2020.
The third claiming period is from May 10 to June 6, and requires a reduction in revenue of 30 pe cent of when compared to May 2020 or the average of January and February 2020.
More information about the CEWS program and eligibility periods can be found here.
