15 April 2020
Canada enacted legislation on 11 April 2020 for the introduction of the Canada Emergency Wage Subsidy (CEWS) to help businesses retain employees during the coronavirus (COVID-19) pandemic. The CEWS is provided to eligible employers for up to 12 weeks, retroactive to 15 March 2020.
The CEWS amount for a given employee on eligible remuneration paid for the period between 15 March and 6 June 2020 is the greater of:
Eligibility is determined based on the change (reduction) in an eligible employer's monthly revenue, year-over-year, for the calendar month in which the period began. Alternatively, a comparison may be made with the average revenue earned in January and February 2020. The claim periods and the required reduction in revenue are as follows:
In addition to meeting the revenue reduction conditions for each period, employers may qualify for the CEWS for a period if they qualified for the prior period. This means, if the revenue conditions for Period 1 are met, the employer also automatically qualifies for the CEWS in Period 2, and if the revenue conditions for Period 2 are met, the employer also automatically qualifies for the CEWS in Period 3.
Click the following link for more information on the Canada Emergency Wage Subsidy webpage.
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