On May 8, 2020 Prime Minister Justin Trudeau announced that the Canada Emergency Wage Subsidy (CEWS) will be extended but the details of the extension have not been released. This program initially provided a subsidy of 75% of the pre‐crisis employee’s eligible remuneration, up to $847 per week from March 15 to June 6, 2020. As can be seen in the Benefit from the CEWS for Alberta Employers, an employer could be eligible for a subsidy of up to $10,164 per employee. If the program is extended, the benefit per employee is likely to increase.
The subsidy is calculated in 4 week periods and to be eligible, the employer must have suffered a drop of gross revenues of at least 15% in March, 30% in April or 30% in May, when compared to the same month in 2019 or the average of January and February 2020. There is no overall limit on the amount an employer can claim so the program can provide substantial support in these unprecedented times. Applications for remuneration paid from March 15, 2020 to April 11, 2020 opened on April 27, 2020 and on May 13, 2020 employers will be able to apply for remuneration paid from April 12 to May 9th.
At KMSS we understand the importance of providing our clients with the assistance they need in order to weather this economic storm. We have professionals who are committed to interpreting the details of the CEWS program. These professionals are here to assist clients by determining eligibility, calculating the subsidy and submitting claims.
The CEWS program includes many elections and the choices that are made can influence the amount of the subsidy in the current and future periods. There is currently no mechanism for amending claims and as the legislation is currently drafted, submissions for claim periods 1 through 3 must occur no later than September 30, 2020. Our professionals can help you receive the financial support that may be available, while you focus on the most important matters of your business.
To learn more about COVID-19 support for Alberta small businesses and Alberta residents please click here.
Please contact your KMSS advisor to learn more about how we can assist.