Canada Emergency Wage Subsidy (CEWS) for employers with reduced revenues

Introducing a wage subsidy for employers with reduced revenues.

Employers will be eligible for the subsidy:

  • between March 15th and April 11th if their revenues in March 2020 are 15% lower than March 2019;
  • between April 12th and May 9th if their revenues in April 2020 are 30% lower than April 2019;
  • between May 10th and June 6th if their revenues in May 2020 are 30% lower than May 2019;

Employers may choose to compare their revenue level to the average of January and February rather than to the prior year.

For existing employees, the subsidy will be 75% of pre-crisis wages, up to $847 per week. For new employees, the subsidy will be 75% of wages, up to $847 per week. “Pre-crisis” refers to the period of January 1 to March 15th.

Eligible employers can also recover 100% of employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan.

Eligible employers include individuals, taxable corporations, and partnerships as well as non-profit institutions and registered charities. Public bodies are not eligible. Only revenues from arm’s-length sources qualify; revenues from extraordinary items and amounts on account of capital are excluded. Cash or accrual accounting may be used. Employers will not have to pay employees their full pre-crisis wages to qualify for the wage subsidy.

For employers that are eligible for both the Canada Emergency Wage Subsidy and the 10% wage subsidy for a period, any benefit from the 10% wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period.