On Saturday April 11, 2020 The House of Commons held a special assembly to obtain royal assent for Bill C-14, a second Act regarding certain measures in response to COVID-19 .

Many of the details surrounding the Canada Emergency Wage Subsidy (CEWS) program were already known, but the following summary should give you more information on many points that were still unclear.1. TARGET AND EXCLUSIONS

The following are eligible entities for the purpose of the Canada Emergency Wage Subsidy (CEWS):


An eligible entity qualifies for the subsidy if it meets the revenue reduction indicated below for the given reference period and was registered with a payroll account with the CRA as of March 15, 2020.



If an eligible entity meets the conditions with regards to the decrease in revenue in respect of a particular reference period, then it is deemed to be eligible for the following reference period.

If the eligible entity meets the conditions with regards to the decrease in revenue in respect of the particular reference period, the entity can claim the wage subsidy for the wages and salaries paid during the related qualifying period.

An election must be filed to use the January-February 2020 period as the reference period and must be applied for the entire qualifying period.


Qualifying revenues mean revenues from the sale of goods, rendering services and for the use by others of resources of the entity carried on in Canada, solely from arm’s length sources and excluding any extraordinary items and amounts on account of capital.

An election may be made, which must apply for all qualifying periods, to determine revenues based on the cash method (as opposed to revenue on an accrual basis).

There are special rules for corporate group in regards to the computation of revenues:

Additional rules apply for non for profits and charities:

Both charities and non for profits may elect to exclude funding received from government sources from the revenues for all the reference periods.


The amount of subsidy on a weekly basis is to be calculated as follow. It will amount to the sum of the 4 items (no cap to the subsidy):

Employees not dealing at arm’s length that were hired on or after March 15, 2020 would not be eligible for the subsidy.

Eligible remuneration means any salary, wages or other remuneration other than, amongst other things, retiring allowance, stock options, taxable benefits and any amount that is paid in respect of a week in the qualifying period in excess of the employee’s baseline remuneration for which one of the main purposes would be to increase the amount of the subsidy.

Baseline remuneration means the average weekly eligible remuneration paid to the eligible employee by the eligible entity during the period that begins on January 1, 2020 and ends on March 15, 2020, excluding any period of seven or more consecutive days for which the employee was not remunerated.

Eligible employee means an individual employed in Canada by the eligible entity in the qualifying period other than individual who is without remuneration by the eligible entity in respect of 14 or more consecutive days in the qualifying period.


Consult our COVID-19 Resource Centre to stay on top of the latest government program announcements, and do not hesitate to contact our Crisis Relief Team, to help you make the calculations and related applications to various programs.