The federal government announced that federal wage subsidy for employees in businesses hit hard by COVID-19 will last at least until the end of August.
Trudeau also said the government will make adjustments to the program, including changes to the threshold for how much qualifying companies’ revenues must have declined, to ensure employers can access the help as business kicks back up.
In addition, Minister Morneau announced the approval of regulations to extend eligibility for the CEWS to the following groups:
- Partnerships that are up to 50-per-cent owned by non-eligible members;
- Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible employers;
- Registered Canadian Amateur Athletic Associations;
- Registered Journalism Organizations; and
- Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.
The Government also said that it intends to propose legislative amendmentsincluding:
- Provide flexibility for employers of existing employees who were not regularly employed in early 2020, such as seasonal employees;
- Ensure that the CEWS applies appropriately to corporations formed on the amalgamation of two predecessor corporations and
- Better align the treatment of trusts and corporations for the purpose of determining CEWS eligibility.
Federal figures posted show just Ottawa has paid out $3.36 billion in wage subsidies to 123,642 companies, the vast majority of which are for under $100,000 in aid.