Canada Emergency Wage Subsidy: Extension To August 29, 2020, And Expanded Eligibility Requirements

The Canada Emergency Wage Subsidy (CEWS) was enacted, as amendments to the Income Tax Act (Canada) (ITA), on April 11, 2020, for the purposes of assisting employers in financial hardship due to the COVID-19 pandemic and of reducing potential lay-offs of employees. As described previously (COVID-19 Relief for Employers: The Canada Emergency Wage Subsidy is Approved and Applications for the Canada Emergency Wage Subsidy Open on April 27, 2020), the CEWS generally provides "eligible entities" with a wage subsidy of up to 75 percent of "eligible remuneration" paid to an "eligible employee" per week, up to a maximum of $847 per week. The application portal for the CEWS opened on Monday, April 27, 2020 and benefit payments began to be made on May 7, 2020. The Canada Revenue Agency (CRA) and Department of Finance continue to provide guidance on the CEWS, including the issuance by the CRA of an application guide and various FAQs and, most recently, the extension by