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CEWS extended for furloughed employees

CEWS extended for furloughed employees

Four-week CEWS extension proposed for furloughed employees

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Finance announced a proposal to extend the current treatment of furloughed employees under the Canada Emergency Wage Subsidy (CEWS) program by four weeks, to September 26, 2020 (from August 30, 2020). Under this proposal, made on August 21, 2020, employers who qualify for the CEWS would be able to continue to claim up to a maximum benefit of $847 per week, to support remuneration for each of their furloughed workers.

According to the announcement, more details on how to calculate CEWS for furloughed workers for the program's remaining periods will be announced in the coming weeks.

Background

Finance originally proposed to adjust the wage subsidy for furloughed employees under the revised CEWS program, starting with the September claim period (beginning August 30, 2020) to align with the Canada Emergency Response Benefit (CERB) and Employment Insurance (EI) (see TaxNewsFlash-Canada 2020-62, "Canada Further Extends and Expands Wage Subsidy". However, more recently, Finance proposed to further extend the CERB for four weeks and simplify the EI program to help eligible individuals transition from CERB to the EI system starting September 27, 2020 (see TaxNewsFlash-Canada 2020-69, "Canada Temporarily Enhances EI Program as CERB Winds Up".

For more information, please contact your KPMG advisor.

Information is current to August 25, 2020. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500.

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