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ARTICLE · 03 SEPTEMBER 2020

Canada Emergency Wage Subsidy: An Updated Guide For Businesses - August 25, 2020

The federal government passed legislation on July 27, 2020, extending the Canada Emergency Wage Subsidy (CEWS) and significantly broadening its reach.

CanadaEmployment and HR

Background

Earlier this year, Parliament enacted legislation adopting the Canada Emergency Wage Subsidy (CEWS) through amendments to the Income Tax Act (Canada) (Act). Although the CEWS program is not tax legislation per se, by implementing the CEWS through the Act, the government sought to leverage existing income tax refund mechanisms to distribute the subsidy to employers in a timely manner and to utilize the broad investigative powers and penalty provisions of the Act to verify and encourage compliance with the terms of the program.

The federal government initially announced that the CEWS would be in place for a 12-week period running from March 15 to June 6, 2020. In a press release issued on May 15, 2020, the government announced that the CEWS would be extended for an additional 12 weeks - to August 29, 2020. The government also announced that eligibility for the CEWS would be expanded to include a number of employer entities that may have otherwise been

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