Major CEWS Update - Increased amounts, lower thresholds

On July 17, 2020 Finance Minister Bill Morneau announced the following regarding CEWS:

• It will be available through end of December 19, 2020

• For the period starting in July, up through the period beginning in November:

  • The 30% revenue reduction requirement will be reduced to “ANY REDUCTION”.

  • There is up to a 25% additional subsidy if the revenue decline is greater than 50%. This is capped at $960 per employee per week. These numbers change over the periods. See below.

Base subsidy for all employers impacted by the crisis

This base CEWS would be a specified rate, applied to the amount of remuneration paid to the employee for the eligibility period, on remuneration of up to $1,129 per week. The rate of the base CEWS would now vary depending on the level of revenue decline, and its application would be extended to employers with a revenue decline of less than 30 per cent (see Table 1).

The maximum base CEWS rate would be provided to employers with a revenue drop of 50% or more.

The maximum base CEWS rate would be gradually reduced from 60 per cent in Periods 5 and 6 (July 5 to August 29) to 20 per cent in Period 9 (October 25 to November 21).

Top-up subsidy for the most adversely affected employers

A top-up CEWS of up to 25 per cent would be available to employers that were the most adversely impacted by the pandemic. Generally, an eligible employer’s top-up CEWS would be determined based on the revenue drop experienced when comparing revenues in the preceding 3 months to the same months in the prior year. 

Big thanks to Video Tax News:

https://www.videotax.com/web-tips-articles/major-cews-update-increased-amounts-lower-thresholds#