This update discusses today’s developments:
- Changes to the Canada Emergency Wage Subsidy
- Expansion of Canada Summer Jobs program
- Applications for the Canada Business Emergency Account begin on April 8, 2020
Canada Emergency Wage Subsidy
Under the original CEWS program, companies were eligible to apply for the 75% CEWS if there had been a decline in revenue of 30% when comparing March, April and May revenue to revenue in the same months last year.
This eligibility has been changed in the following ways:
- Employers can use a 15% drop in revenue in March to determine eligibility; however, for April and May, employers will still have to attest to a 30% decline in revenue.
- Employers can now determine the decline based on either (a) average revenue in January and February 2020 as the reference point for determining the decline in revenue in March, April or May, or (b) the comparative month in 2019.
- Revenue can be determined based on either the accrual method or cash method
Changes are to be made to provide for the refund of CPP, QPP and EI contributions.
Charities and NPOs
Charities and not-for-profit organizations have the choice to include or exclude government grants in determining their eligibility for the CEWS.
These changes will be subject to legislation and debate when Parliament reconvenes.
Canada Emergency Response Benefit
The government are still working for solutions for gig workers, students and people who normally work less than 10 hours per week
Changes are being made to Canada Summer Jobs program
- The subsidy will be increased to 100% of a student’s wage, based on Provincial minimum wages;
- As jobs may not start in the summer, the program has been extended to February 28, 2021
Canada Business Emergency Account
On Thursday, April 8, 2020, financial institutions, including credit unions, will begin to accept applications for government-guaranteed, non-interest loans of up to $40,000,
Useful link for Charities and Not-for-Profit Organizations
CanadaHelps.org has a comprehensive guide on the government COVID-19 support for charities at the following website address: