Government Extends Emergency Wage Subsidy

The federal government has proposed to further extend the Canada Emergency Wage Subsidy (CEWS) until October 23 and to hold the maximum subsidy rate at 40 per cent during the period between August 29 and September 25. It also provided the legislative authority to further extend CEWS until November 20, if necessary, says Hicks Morley in its ‘FTR Now’ bulletin. The increase of the maximum CEWS subsidy rate to 40 per cent is instead of reducing it to 20 per cent, as previously announced. Eligible employers will still be able to apply for the Canada Recovery Hiring Program (CRHP) instead of CEWS if the CRHP provides greater support than CEWS in a qualifying period. Once an approach is chosen, the employer is required to use the same approach for all qualifying periods.