Bill C-20, An Act respecting further COVID-19 measures, came into force on July 27, 2020 after receiving Royal Assent. We recently provided a comprehensive overview on the implications of Bill C-20 for employers, which included significantly expanding and amending the Canada Emergency Wage Subsidy (“CEWS”) program.
While the Bill was passed without further amendments, changes to the Income Tax Act are deemed to have come into force on April 11, 2020, and the amendment to the Income Tax Regulation, is deemed to have come into force on June 7, 2020.
The newly revised formula for calculating an employer’s wage subsidy entitlement under the CEWS takes effect in qualifying period number 5, which spans July 5, 2020 to August 1, 2020. This revised formula for Period 5 may be used by employers who did not qualify for the wage subsidy under the previous formula, or who qualified for a lower wage subsidy amount under the previous formula. Details for how wage subsidies are calculated during Period 5 (as well as later periods) are set out in our previous article.
Note to our Readers: Information regarding COVID-19 is rapidly evolving. We are working to bring you up-to-date articles as the legal issues develop and to keep our previous posts updated. Given that the legal issues related to COVID-19 are constantly changing, if you are looking for legal advice or are dealing with an issue in relation to COVID-19, please contact your Harris lawyer or a member of our COVID-19 response team: Sari Wiens, Ilan Burkes, Nicole Toye or Jessica Fairbairn.
To read our most recent articles and other updates on COVID-19, visit our COVID-19 Updates page.