In today's daily 11:15 a.m. press conference, Prime Minister Trudeau announced some changes to the proposed 75% wage subsidy.
Eligibility: Businesses will now have the option to use January and February 2020, rather than the same month the previous year, as the comparative months for demonstrating the required 30% loss of revenue to qualify. Businesses will now also only have to show a 15% decline in revenues for the month of March 2020 only to receive the subsidy. The requirement to show a 30% decline in revenues will remain in order to receive the subsidy in subsequent months.
Charities and Not-for-Profit Organizations: These organizations will have the option of deciding whether or not to include government funding when calculating revenue losses for the purposes of qualifying for the subsidy.
Timeline to Implementation: The government hopes to accelerate the timeline for administering the subsidy. Previously, the expected timeline for businesses to receive the subsidy was 6-8 weeks. Now, the PM is hopeful that the subsidy could be rolled out within 3 weeks, if not sooner.
The Prime Minister stated that Parliament should be recalled in the coming days to pass legislation, including amendments to the Income Tax Act.
To re-watch the Prime Minister's daily press conferences, be sure to visit the CPAC Video Archive. Be sure to also view our previous post about the CEWS for more information about this proposal.
Note: while this blog and the information above provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. For more information about the CEWS, or if you have any other questions regarding your employment issue, please contact our office for a consultation with one of our lawyers.