NEW CHANGES TO THE WAGE SUBSIDY - 30% RULE GONE - NEW SLIDING SCALE APPLIES - TOO LITTLE, TOO LATE FOR OUR CKL BUSINESSES?

The requirements for the Canadian Emergency Wage Subsidy have been loosened for employers in the CKL. 

They no longer need to prove a 30% or greater revenue setback or reduction to qualify for the CEWS. We are now in period 5 of the CEWS.   

Rather, a new sliding scale approach will prevail.

What you need to know: 

  • the CEWS program is extended to December 19, 2020;

  • it is now available to any qualifying employer that experiences any level of reduction in revenue (not only a 30% reduction); ;

  • employers are eligible for a base subsidy amount proportional (or of equal value) to their revenue decline, up to the maximum subsidy rate;

  • the maximum base subsidy rate is reduced from 75% to 60% for periods 5 and 6 and will continue to decrease gradually to 20% by period 9 (note: this is period 5); 

  • however, employers that qualified for the 75% subsidy under the current/existing program rules will remain entitled to that higher rate for periods 5 and 6, respectively;

  • employers experiencing a reduction of more than 50% in their three-month, rolling average of revenue are entitled to an additional CEWS “top-up” rate of up to 25%;

  • employers may re‑elect between the year-over-year and alternative revenue drop methods. 

More details are promised.Regrettably they are scant at this time. 

These changes are expected to co-ordinate upcoming announcement to phase out the Canada Emergency Response Benefit, shifting the focus more on subsidizing employers to re-start or continue employ, rather than individuals, some of whom may prefer to remain on the CERB rather than return to work. 

 

 


Thank you for reading this - Jason Ward, Calvin Chan of WARDS LAWYERS PC.

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This WARDS LAWYERS PC blog is for general information only. It is not legal advice, or intended to be. Specific or more information may be necessary before advice could be provided for your circumstances.

More information? We're here to help - jason@wardlegal.ca | calvin@wardlegal.ca | www.wardlegal.ca