CEWS Extended until August 29

Evelyn Jacks

The federal government extended its Canada Emergency Wage Supplement (CEWS) until August 29 last week, and that’s good news for business struggling to recover as Canada comes out of COVID lockdown. That now extends the program to 24 weeks, retroactive to March 15, 2020.

The program covers 75% of wages (less any 10% temporary wage supplement received) up to $847 per week. To be eligible, employers need to meet these guidelines:

Eligible employers include individuals and trusts, taxable corporations, non-profits, agricultural organizations, boards of trade and chambers of commerce, labor organizations, registered charities and partnerships that include eligible employers.

Revenue decline test.  Eligible employers must meet a specific revenue decline test.  This begins with a base line period. By qualifying under one baseline period employers automatically qualify for the following period. That baseline period is either the revenue earned in a corresponding month in 2019 or the average revenue earned in January and February of 2020.

Claim periods. 

Eligibility Period

Start and End Dates

Baseline Revenue

Eligibility
Period Revenue

Required
Reduction

1

March 15, 2020 to  
April 11, 2020

  • March 2019, or
  • Average of January
     and February 2020

March 2020

15%

2

April 12, 2020 to      
May 9, 2020

  • April 2019, or
  • Average of January
     and February 2020

April 2020

30%

3

May 10, 2020 to      
June 6, 2020

  • May 2019, or
  • Average of January
     and February 2020

May 2020

30%

4

June 7 to July 4

 

  • June 2019 or
  • Average of January and February 2020

June 2020

30%

5

July 5 to August 1

  • July 2019 or
  • Average of January and February 2020

July 2020

30%

6

August 2 to August 29

  • August 2019 or
  • Average of January and February 2020

August 2020

30%

 

The program makes it possible to re-hire previously laid off workers and for many businesses, whose revenues are restarting again, to resume normal operations with staff members who know their jobs. 

Additional educational resources: Interested in learning more about the COVID-19 emergency relief benefits? Take the Emergency Pandemic Benefits Response Course online, which includes 9 recorded speaker sessions. You’ll earn 10 CE credits and be well-positioned to provide sound advice for tough times. This course features outstanding, detailed content on the tax and financial planning effects of an unprecedented event that will impact individuals, families and businesses alike today and in the future. The value is priceless: your clients want to know how to access support in their most difficult financial hours. Feel more confident and in-the-know about the government supports – and significant debt and audit risk – your clients might be signing up for.

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