Canadian Emergency Wage Subsidy (CEWS) – Further Extension Announced The Canadian government has announced an extension to the CEWS subsidy. Eligible employers will now be able to claim this subsidy until December 19, 2020. We thought it appropriate to give you a heads up as they have also announced proposed changes to the CEWS as follows: Starting with the July 5 to August 1 reporting period (Period 5), new rules will be in place to allow for possible eligibility to employers who previously did not meet the 30% revenue reduction threshold.The previous CEWS subsidy will be replaced with a two-part subsidy. There will be a “base” amount and a “top-up” amount. The top-up amount will apply to employers who are experiencing a 50% or greater revenue decline.Under the new rules, the amount of the wage subsidy an eligible employer could qualify for would vary depending on their revenue decline. Where the revenue decline is less than 30%, the subsidy falls in proportion.Interestingly, this proposal included an option for employers to apply under the previous rule for July and August (Periods 5 and 6) should the amount of the CEWS subsidy received result in a larger amount under the old rules compared to the new rules. New continuity rules are in place for employers that have recently purchased assets of a business.There will be a CEWS appeal process and an extension to the subsidy application deadline.The legislative proposals also include previously announced measures for the subsidy affecting employers with a paymaster arrangement, amalgamated corporations, tax exempt trusts, and seasonal employees.The draft legislation further includes previously tabled measures to allow the government to temporarily extend or suspend certain federal statutory deadlines and time limits (i.e. tax filing and payment deadlines) up to December 31, 2020. Clear as mud? Based on our first read through the new rules, they are by far more complex than what we had before, but ultimately perhaps “fairer”. We are going to need time to fully absorb how all of this works and will be issuing additional guidance when we feel we understand this better. In terms of urgency and timing, we are presently in Period 5 of the subsidy which ends August 1, so no applications for Period 5 can be processed until after that time. Until then, we will monitor any updates and do our best to keep you posted as things are clarified by the Government of Canada.