Canada Emergency Wage Subsidy (“CEWS”) & Canada Emergency Rent Subsidy (“CERS”)
The Government of Canada announced updates to the CEWS and CERS subsidy programs. Qualifying employers, qualifying tenants, and qualifying landlords may claim the CEWS and CERS through June 5, 2021. In particular, the following changes are being proposed for claim periods from March 14 to June 5, 2021.
CEWS – The current rate structure would remain in place. As such, the maximum base wage subsidy rate for the CEWS would remain at 40%, and the maximum top-up wage subsidy rate would remain at 35%.
CERS – The maximum rent subsidy rate would remain at 65%, and the lockdown support would remain at 25%.
For more details on either program, please refer to our previous publications.
For revenue decline calculations, to ensure that the general approach continues to calculate an organization’s decline in revenues relative to a pre-pandemic month, the prior reference periods would be based on calendar months from 2019. The alternative approach would continue to be the average of January and February 2020. The chart below highlights both approaches:
Note, employers that chose to use the general approach or alternative approach for prior CEWS periods must continue to use that approach.
Timeline to apply:
*CERS commenced from Period 8 onwards.
Please note, that the legislation supporting the amendments for the Periods 14 – 16 have been announced but not yet enacted into law as at the time of writing.
As your trusted advisors, we can aid your organization via the review of your eligibility and assist you with filing the CEWS or CERS claims. Please feel free to contact your McGovern Hurley advisor for further details.