Wage & Rent Subsidy Support Continues to June 2021

On March 3, 2021 the Government of Canada announced that it would continue financial support to June 5, 2021 to businesses effected by the COVID-19 global pandemic. Support provided under the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) would continue at current levels.

Canada Emergency Wage Subsidy
For periods 14 to 16, being March 14 to June 5, 2021, the government announced that the maximum subsidy rate will remain at 75%.  The maximum rate is achieved with a base rate maximum of 40% and then a maximum top up of 35%.

As a reminder, starting on period 7, the CEWS moved from its initial 30% revenue decline test to a base rate plus top-up approach. 

Claim PeriodRevenue DeclineSubsidy Rate
Periods 8-10Revenue decline >50%40% max base rate, 25% max top up rate
 Revenue decline 1%-50%.8 X revenue decline rate
Periods 11-16Revenue decline >50%40% max base rate, 35% max top up rate
 Revenue decline 1%-50%.8 X revenue decline rate

Clients are reminded that any revenue decline could result in a wage subsidy claim.

For claiming periods 11 and onward, the revenue decline test has not changed.  For these claiming periods, the government has indicated that the reference period can still be 2019 for the general approach (i.e. March 2021 v March 2019), or an average of revenue in January/February 2020 (i.e. March 2021 v average January/February 2020) for the alternative approach.

Reminder about CEWS filing deadlines
CEWS applications are due 180 days after the end of the claim period.  CRA will not accept late claims.  The deadlines for each period are as follows:

Period4 Week Period Ending DateDeadline
7September 26, 2020March 25, 2021
8October 24, 2020April 22, 2021
9November 21, 2020May 20, 2021
10December 19, 2020June 17, 2021
11January 16, 2021July 15, 2021
12February 13, 2021August 12, 2021
13March 13, 2021September 9, 2021
14April 10, 2021October 7, 2021
15May 8, 2021November 4, 2021
16June 5, 2021December 2, 2021

Canada Emergency Rent Subsidy
Support for businesses under CERS will continue to June 5, 2021 at the current rates using the same reference periods and revenue decline tests that apply for the CEWS.  The maximum recovery rate is 65% of certain eligible expenses, but any revenue decline could result in some subsidy, calculated as follows:

Revenue DeclineSubsidy Rate
Revenue decline 70% and over65%
Revenue decline 50% – 69%40% + (revenue decline – 50%) X 1.25
Revenue decline 1% – 49%Revenue drop X .8

Eligible costs per claiming period are up to a maximum of $75,000 per location and $300,000 for all locations, including amounts claimed by affiliated entities.

These costs may include rent, or for owned properties, property taxes, insurance and interest on debt incurred to purchase the property.

Lockdown Support for CERS
The government announced that their support for businesses affected by any lockdowns will continue to June 5, 2021.  This allows for an additional 25% subsidy on top of whatever your calculated subsidy rate is.

Please contact us if you would like more information or to discuss your situation.