The Canada Emergency Wage Subsidy (the “CEWS”) has been both extended and expanded:
- extended for another 3 months to August 29, 2020; and
- expanded to include eligibility for the following groups:
- partnerships that are up to 50% owned by non-eligible members;
- Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible employers;
- registered Canadian amateur athletic associations;
- registered journalism organizations; and
- non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools, or flight schools.
The government announced further proposed changes to the CEWS which will require legislation, including:
- providing flexibility for employers of existing employees who were not regularly employed in early 2020, such as seasonal employees;
- ensuring that the CEWS applies appropriately to corporations formed from the amalgamation of two predecessor corporations; and
- better aligning the treatment of trusts and corporations for the purpose of determining CEWS eligibility.
These new changes will hopefully be legislated very soon.
