On April 19, 2021, the honourable Chrystia Freeland, Minister of Finance, presented the 2021 Federal budget which included the extension of the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS), for periods 17 and 10, respectively (June 6 to July 3 for both), 18 and 11 respectively (July 4 to July 31 for both), 19 and 12 respectively (August 1 to August 28 for both) and 20 and 13 respectively (August 29 to September 25 for both). Here is what we know:The maximum base rate for periods 17 to 20 of the CEWS and periods 10 to 13 of the CERS will be on a scaled down basis from 40% to 10% (for revenue decline under to 50%).The top-up rate applied when revenues fell by more than 50% will be on a scaled down basis from 35% to 10% (for revenue decline over 50%) for the CEWS and 25% to 10% (for revenue decline over 50%) for the CERS.

• Period 17 – 75%
• Period 18 – 60%
• Period 19 – 40%
• Period 20 – 20%

• Period 10 – 65%
• Period 11 – 60%
• Period 12 – 40%
• Period 13 – 20%, before lockdown support of up to 25% (for each period in addition to percentages mentioned above)

• Period 17 – June 2021 vs. June 2019 or May 2021 vs. May 2019
• Period 18 – July 2021 vs July 2019 or June 2021 vs. June 2019
• Period 19 – August 2021 vs August 2019 or July 2021 vs. July 2019
• Period 20 – September 2021 vs September 2019 or August 2021 vs. August 2019

The subsidy for arm’s length employees / or non-arm’s length with pre-crisis remuneration will be the lesser of:

• the amount of eligible remuneration paid in respect of the week; and
• the greater of:
  • $500; and
  • 55% of pre-crisis remuneration for the employee, up to a maximum subsidy amount of $595.
• Nil for period 20

We offer a Crisis Relief Program to support you throughout the process. Whether you are wondering about your company’s eligibility or would like an estimate of the amount of subsidy to which you may be entitled, do not hesitate to contact a member of our team.