On April 8, 2020, Prime Minister Trudeau clarified and announced
adjustments to the Canada Emergency Wage Subsidy program, providing
flexibility to start-up or fast growing businesses and
charities.
Further to the information outlined in our
blog dated April 2, now a business can choose to use January
and February of this year as the reference point for the revenue
drop, rather than comparing to the same month last year (as
previously announced). Furthermore, a drop in revenue of only 15%
will be required for March 2020, in recognition that the impact for
most businesses began to be felt mid-March. The government will
also allow businesses the option to use cash accounting, instead of
accrual accounting, for purposes of calculating the revenue
drop.
