Canada further extends and expands wage subsidy


Certain employers may now be able to receive the CEWS for an extended period of time.


Related content

The government said it would extend the deadline until December 19, 2020, although it only provided details to November 21, 2020. The government also proposed other new changes to the wage subsidy on July 17, 2020, including new measures to expand the eligibility to employers who do not meet the previous 30% revenue threshold and to replace the subsidy with a new two-part subsidy consisting of a "base" and "top-up" amount. Under the new rules, the amount of the wage subsidy an eligible employer could qualify for would vary depending on their revenue decline, with a maximum combined subsidy of up to 85% of eligible remuneration. These proposals are based on feedback received from a recent public consultation on the subsidy, and are generally intended to apply beginning with the current July reporting period.

The draft legislation also contains new changes that provide continuity rules for employers that have recently purchased assets of a business, provide an appeal process for the wage subsidy and extend the subsidy application deadline. The legislative proposals also include previously announced measures for the subsidy affecting employers with a paymaster arrangement, amalgamated corporations, tax exempt trusts and seasonal employees. The draft legislation further includes previously tabled measures to allow the government to temporarily extend or suspend certain federal statutory deadlines and time limits up to December 31, 2020.

Download this edition of the TaxNewsFlash to learn more.

© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today