The Canada Emergency Wage Subsidy (CEWS) has been extended to June 2021, and changes to the rates and top-up calculations have been included.
As of November 19, changes to Bill C-9: An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy) also means the maximum subsidy rate for periods eight to 10 will remain at 65 per cent — 40 per cent for the base rate plus 25 per cent for the top-up rate.
“The federal government has frozen the current base rate of the wage subsidy program until the end of the year to provide certainty to businesses,” said Oumar Dicko, CADA Chief Economist in a CADA Newsline article. “This is good news for dealers, as they can continue to access more of the wage subsidy until the end of the year.”
As of period eight, the top-up rate and base rate will be calculated using the same one-month revenue drop.
The deadline to apply is January 31, 2021 or 180 days after the end of the claim period (whichever option comes later), according to the federal government.
Other changes to the bill include the introduction of the Canada Emergency Rent Subsidy (CERS) for businesses, nonprofits and charities. The new program will see the subsidy provided directly to businesses now.
“In the previous program, you had to have your landlord apply to get the relief and then provide it to the tenant, and this is something that businesses did not want,” said Dicko. “There was low uptake for that program and we advocated for the government to make the program tenant-based with the subsidy provided directly to tenants — which they have done.”
For more information about changes and updates to Bill C-9, click here.
