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July 17, 2020 update

Information is accurate as at 3:00 p.m. EDT. Information may be affected by subsequent announcements.

Links to government announcements follow at the end of the daily update.

Updates:

  • Canada - Details of Canada Emergency Wage Subsidy (CEWS) extension: The federal Department of Finance confirmed that the CEWS program will be extended until December 19, 2020 and announced proposed details of the program that will apply from July 5 through November 21, 2020 (i.e., qualifying periods 5 to 9). Instead of requiring that a 30% revenue drop threshold be met to qualify for the program, the CEWS will be available to any qualifying employer which has experienced any level of reduction in revenue. Employers will be eligible for a base subsidy amount proportional to their revenue decline, up to the maximum subsidy rate with a 50% decline in revenue.
    The maximum base subsidy rate will be reduced from 75% to 60% for periods 5 and 6 and will continue to decrease gradually to 20% by period 9; however, an employer who would have qualified for the 75% subsidy under the existing rules will still be entitled to that rate for periods 5 and 6. In addition, employers who experience a drop of more than 50% in their three-month rolling average of revenue will be entitled to an additional CEWS “top-up” rate of up to 25%. 
    The following additional changes will apply for periods 5 to 9: (i) eligible remuneration will no longer be based on baseline remuneration, except in the case of non-arm’s length employees; (ii) employees who are without remuneration for 14 or more consecutive days in a period will no longer be excluded from being “eligible employees”; (iii) employers may re‑elect between the year-over-year and alternative revenue drop methods; (iv) employers may use the greater of the revenue drop for the current period or for the previous period; and (v) regulations will be enacted to limit the eligible remuneration in respect of an employee on paid leave to the amount that the employee would receive under the Canada Emergency Response Benefit. Certain measures relating to amalgamations, newly-purchased businesses, government-source revenue and entities using payroll service providers are also proposed and would apply as of March 15, 2020. The Department of Finance released draft legislative proposals which, if introduced and enacted, would implement all of the above proposals.
  • Canada - Safe Restart Agreement funding: The federal government will make $19 billion in transfer payments to the provinces and territories to support spending on health care, personal protective equipment, child care, a paid sick leave program and other measures.
  • Canada - Expanded support for Canadians with disabilities: On June 5, 2020, the federal government announced that a one-time payment of up to $600 would be made to all individuals holding a Disability Tax Credit certificate as of June 1, 2020. The government is now expanding eligibility for this payment to include individuals receiving Canada Pension Plan or Quebec Pension Plan disability benefits or disability supports provided by Veterans Affairs Canada.
  • British Columbia - Measures for residential tenants: BC plans to end its ban on evictions for non-payment of rent on September 1, 2020. However, landlords will be required to give tenants until July 2021 to repay any outstanding rent, as long as minimum monthly instalments are paid. Rent increases will continue to be restricted until December 2020.
  • Ontario - Risk Management Program expansion: The Ontario Ministry of Agriculture, Food and Rural Affairs is increasing the funding for the Risk Management Program from $100 million to $150 million in 2020. This increase was originally scheduled to occur in 2021.

Links to government announcements:

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