Canada Emergency Wage Subsidy enacted

On Saturday April 11, 2020, Bill C-14, COVID-19 Emergency Response Act, No. 2, was passed by the House of Commons and the Senate, and received Royal Assent. Part 1 of the bill amended the Income Tax Act to introduce the Canada Emergency Wage Subsidy ("CEWS"). This legislation includes the additional flexibilities announced on April 8, which were subsequently refined as a part of the legislative process.

Since last week's announcement, the government has provided yet another flexibility to the CEWS. To provide certainty for employers, once an employer is eligible for a specific period, they will automatically qualify for the following period of the program. For example, an employer with a revenue drop of more than 15% in March will qualify for the first and second periods of the program, covering remuneration paid between March 15 and May 9. Similarly, an employer with a revenue drop of 30% in April would qualify for the second and third periods of the program, covering remuneration paid between May 10 to June 6.