May 26, 2020
Federal Government Begins CEWS Consultations
On May 15 the federal government announced the extension of the Canada Emergency Wage Subsidy (CEWS) to August 29 and its intention to conduct CEWS consultations with business and labour groups on potential changes to the CEWS. These consultations opened on May 25, and comments can be submitted until June 5.
The CEWS consultation can be accessed on the Government of Canada web page entitled, Canada Emergency Wage Subsidy Consultation.
The objective of the CEWS consultation is to aid the Canadian government in developing potential changes to the CEWS to help maximize employment and best meet the needs of businesses during the COVID-19 pandemic.
What Is Involved in CEWS Consultations?
Are there specific challenges associated with the CEWS program? For example, are there challenges with respect to its accessibility, its incentive impacts, or any other aspect?
What adjustments to the CEWS program would you propose to provide the right level of support to those most affected by the pandemic while supporting the economic recovery?
Would adding complexity to the CEWS program be acceptable in order to expand access to this support, or better target support to those who need it?
To what extent are employers using the CEWS to provide support to furloughed employees as compared to using it as a means to pay active employees? Do employers value maintaining ties with furloughed employees by keeping them on the payroll? Should the level of support for furloughed employees be the same as for active employees?
What are the key barriers to rehiring workers recently laid off due to the pandemic?
Are there specific factors that are preventing or discouraging employers from applying for the CEWS program?
If you are a seasonal business, are there any unique challenges you are facing in relation to the CEWS program?
We Are Here to Help
If you have any questions about the CEWS consultations, please contact a member of the Manning Elliott tax team.
This content is believed to be accurate as of the date of posting. Canadian Tax laws are complex and are subject to frequent change. Professional advice should be sought before implementing any tax planning. Manning Elliott LLP cannot accept any liability for the tax consequences that may result from acting based on the information contained therein.