OTTAWA — The federal government announced Wednesday plans to further expand the proposed Canadian Emergency Wage Subsidy (CEWS).
Speaking with reporters, Prime Minister Justin Trudeau said previously announced eligibility criteria would be loosened.
In order to apply for the subsidy, which will cover 75 per cent of the first $58,700 normally earned by employees up $847 per week per employee for businesses of all sizes, with no cap, the government initially said businesses would have to show a 30 per cent drop in revenue when compared to the same the month last year.
Recognizing that this could be an issue for non-profit groups, fast-growing companies like start-ups and new businesses, Trudeau said companies will now have the option of using January and February of this year as reference points to show a 30 per cent decline in revenue, and businesses will only need to show a 15 per cent decline in revenue for March instead of 30 per cent, as most businesses only felt the impact of closures due to the COVID-19 pandemic about halfway through the month.
Charities and non-profits will have the choice to include or exclude government funding when calculating loss in revenue.
Other changes, tweaks
The CEWS, which is still a proposed program, will be in place for a 12-week period, and will apply retroactively from March 15 to June 6. Employers of all sizes and across all sectors of the economy will be eligible, with certain exceptions, including public-sector entities.
The government also announced Wednesday it is proposing that employers eligible for the CEWS be entitled to receive a 100 per cent refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan and the Quebec Parental Insurance Plan.
According to a news release from the Prime Minister’s Office (PMO), this refund would apply to the entire amount of employer-paid contributions in respect of remuneration paid to furloughed employees in a period where the employer is eligible for the CEWS, making it easier for employers to rehire people previously laid off.
“I know many of you are anxious to see this subsidy delivered,” Trudeau said. “We’re calling on the opposition to join us in bringing the House back to pass legislation so you can get the support you need as soon as possible.”
Trudeau also announced changes to Canada’s Summer Jobs Program this year aimed at helping students and businesses. The federal government will give CSJ employers a subsidy of up to 100 per cent to cover the costs of hiring students and will extend the timeframe for job placement until the winter because some jobs will start later than usual. In addition, because many businesses have had to scale back their operations, CSJ employers will be able to hire students part-time.
“Our government is also encouraging all employers who have been impacted by COVID-19 to make adjustments so work can continue. For example, if you run a local food bank you may be doing deliveries instead of serving people on site, so you can hire students to help you,” Trudeau said. “We will also be asking MPs across the country to reach out to businesses and organizations providing critical services in their communities to look at how students can help during this critical time.”
As hundreds of thousands of Canadians apply for the $2,000-a-month Canada Emergency Response Benefit that rolled out this week, the federal government continues to get positive feedback from the public on the ease and speed of the application process, but many Canadians have taken to social media to express concern about eligibility limits, namely for those who continue to make a reduced income.
While no details have yet been made available by the government, Trudeau said Monday the government will soon announce how anyone working 10 hours a week or less will be able to qualify for the benefit.
