CEWS Extended Until June 2021
On October 9, 2020, the Government of Canada announced its intention to extend the Canada Emergency Wage Subsidy (“CEWS”) until June 2021. This announcement was detailed in a news release that also contained information on a new rent subsidy program (the “Canada Emergency Rent Subsidy”), which is intended to provide rent and mortgage support to qualifying organizations affected by COVID-19. According to the release, the CEWS will remain at “the current subsidy rate of up to a maximum of 65 per cent of eligible wages until December 19, 2020.” This announcement extending the current maximum CEWS amount represents a change from the current legislation, which gradually reduces the maximum CEWS amount available in respect of active employees to 45% in Period 9 (October 25, 2020 – November 21, 2020). Details regarding the maximum CEWS amounts for Period 10 were previously unavailable. The Government intends to introduce legislation to implement the Canada Emergency Rent Subsidy and the CEWS extension in the near future.