On April 27, 2020, applications opened for the Canada Emergency
Wage Subsidy ("CEWS"). The CEWS is an initiative
introduced by the Government of Canada to provide an incentive to
businesses of all sizes (excluding public companies) to re-hire or
maintain their workforce.
The CEWS
The CEWS covers 75% of an employee's wages on the first
$58,700 an employee earns, up to a maximum of $847 per employee per
week. Employers may also claim a 100% refund on employer-paid
contributions like EI, CPP, QPP, and QPIP made on behalf of
eligible employees who are on leave with full or partial pay for
any full week in the claim period, and for which the employer is
eligible to claim CEWS.
To qualify for the CEWS, businesses must have experienced an
eligible reduction in revenue during the applicable benefit
periods.
