CEWS extended until the end of August – What does this mean for your business?

The Government of Canada will extend the Canada Emergency Wage Subsidy (CEWS) by an additional 12 weeks to August 29, 2020. Initially, the CEWS was only available until June 6, 2020.

What does the CEWS extension mean for my business?

As provinces ease restrictions, businesses that are starting to reopen at a smaller scale than pre-COVID-19 may be able to take advantage of CEWS. This includes many restaurants that had to close down shop and lay off all their employees. Since these businesses did not have any employees on payroll during the shutdown, they would not have benefitted from CEWS for April and May. As these businesses bring their employees back to work, they can apply for CEWS to ease the financial burden.

Will the 30% revenue decline threshold stay the same?

The Government will consult with business and labour representatives over the next month on potential adjustments to the program to incent jobs and growth, including the 30% revenue decline threshold.

Updates to CEWS regulations to extend eligibility for more employers

The Government released regulations to extend eligibility for the CEWS to the following groups:

1. Partnerships that are up to 50-per-cent owned by non-eligible members;
2. Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible employers; 
3. Registered Canadian Amateur Athletic Associations;
4. Registered Journalism Organizations; and
5. Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.
6. The Government also intends to propose legislative amendments to ensure that the CEWS continues to meet its objectives. These proposed amendments would:
7. Provide flexibility for employers of existing employees who were not regularly employed in early 2020, such as seasonal employees;
8. Ensure that the CEWS applies appropriately to corporations formed on the amalgamation of two predecessor corporations and
9. Better align the treatment of trusts and corporations to determine CEWS eligibility.

If you need help with calculating and applying for CEWS

1. Schedule a consultation.
2. Check out our free resources
   1. CEWS Calculator
   2. 10% Temporary Wage Subsidy Calculator
   3. CEWS Commentary and Guide in Plain English