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Another CEWS extension for furloughed employees

Another CEWS extension for furloughed employees

Finance adds four-week extension to CEWS treatment for furloughed employees

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Finance is proposing a four-week extension to the current CEWS treatment for furloughed employees, to October 24, 2020 (from September 26, 2020). Under this proposal, made on September 25, 2020, employers who qualify for the CEWS would be able to continue to claim up to a maximum benefit of $847 per week, per employee, to support remuneration for each of their furloughed workers.

According to the announcement, the government will review the wage subsidy program for the following periods and will adjust the program as necessary to reflect the extension of the program outlined in Canada's recent Speech from the Throne.

 

In addition, the regulation introducing a previous four-week extension to the current CEWS treatment for furloughed employees (which had extended the current maximum benefit of up to $847 per week per employee to September 26, 2020), is set to be published in the Canadian Gazette on October 14, 2020. The regulation for the latest extension of September 27 to October 24, 2020 is not yet available.

 

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 and employment insurance benefits (see TaxNewsFlash-Canada 2020-62, "Canada Further Extends and Expands Wage Subsidy"). However, Finance extended the current treatment of furloughed employees under the CEWS program (allowing a maximum benefit of up to $847 per week, per employee) by four weeks to include the September claim period in an announcement on August 21, 2020.
For more information, contact your KPMG advisor.

Information is current to September 29, 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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