UPDATE Canada Emergency Wage Subsidy (CEWS)
• The program has been extended until November 21, 2020
- Claim period 6: August 2 to August 29, 2020
- Claim period 7: August 30 to September 26, 2020
- Claim period 8: September 27 to October 24, 2020
- Claim period 9: October 25 to November 21, 2020
• Eligible employers who had any drop in revenue can now qualify for the wage subsidy, starting with the claim periods that began July 5, 2020
- The subsidy rate varies depending on how much your revenue dropped (see table below)
- Employers who were hardest hit over a period of three months will receive a higher amount
- Employers who are especially hard-hit can qualify for a top-up of up to 25% (see table below)
- The maximum base subsidy rate is 60% for claim periods 5 and 6
- The maximum base subsidy rate will begin to decline in period 7, gradually reducing to 20% in period 9
• Eligibility has been expanded to include the following employers:
- Sole proprietorships and taxable corporations
- Certain Indigenous government-owned corporations
- Non-profit organizations
- Partnerships consisting of 50% or more eligible employers
- Registered charities
• You can now calculate your revenue drop in different ways, and choose the way that works best for your situation
- Use the current period’s revenue drop or the previous period’s, whichever works in your favour
- Even if your revenue has not dropped for the current claim period, you can still qualify if your average revenue over the previous three months dropped more than 50%
- Employees who were unpaid for 14 or more days can now be included in your calculation
Click here to access the CANADA EMERGENCY WAGE SUBSIDY CALCULATOR
CLAIM PERIODS
| Period 5 | Period 6 | Period 7 | Period 8 | Period 9 | |
| Maximum weekly benefit per employee | $677.40 (60% x $1,129) | $677.40 (60% x $1,129) | $564.50 (50% x $1,129) | $451.60 (40% x $1,129) | $225.80 (20% x $1,129) |
| Revenue reduction 50% or more | 60% Max | 60% Max | 50% Max | 40% Max | 20% Max |
| Revenue reduction 49% or less | 1.2 x Reduction (ex. 1.2 x 20% RR = 24%) | 1.2 x Reduction (ex. 1.2 x 20% RR = 24%) | 1.0 x Reduction (ex. 1.0 x 20% RR = 20%) | 0.8 x Reduction (ex. 0.8 x 20% RR = 16%) | 0.4 x Reduction (ex. 0.4 x 20% RR = 8%) |
SUBSIDY TOP-UP
| Revenue drop 70% or more | Revenue drop between 50 - 70% | Revenue drop between 0 - 50% |
| 25% up to $282.25/week per employee | 1.25 x (your 3-month average revenue drop % - 50%) ex. 1.25 x (60% - 50%) = 12.5% or $141.13/week per employee |
No top-up |
Still have questions? Contact Scott Rowland at
scott.rowland@availcpa.com OR 403-382-6800
For a complete list of our COVID-19 resources for individuals and businesses, please visit availcpa.com/resources
