On Friday, July 17, Minister of Finance Bill Morneau announced a redesign of the Canada Emergency Wage Subsidy (CEWS) to help broaden the program’s reach. These proposed changes to the CEWS were debated and approved in the House of Commons on July 21. They include:
- extending the program until December 19, 2020;
- allowing entities that use the cash method of accounting to use accrual-based accounting to compute their revenues;
- making the subsidy accessible to a broader range of employers by including employers with a revenue decline of less than 30% and providing a gradually decreasing base subsidy to all qualifying employers; and
- introducing a top-up subsidy of up to an additional 25% for employers that have been most adversely affected.