Certain employers, qualifying tenants and property owners may be affected by a proposed new hiring subsidy and changes to extend the wage and rent support subsidies to the fall of 2021. These changes, which were announced as part of the 2021 federal budget, introduce a new temporary Canada Recovery Hiring Program (CRHP) that is intended to offset a portion of an employer’s additional remuneration costs as they reopen, either as a result of increasing wages or hours worked, or hiring more staff. This subsidy provides eligible employers with a subsidy of up to 50% on qualifying remuneration paid to eligible employees until November 20, 2021. In addition, the government now says it will extend the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Rent Subsidy (CERS) and Lockdown Support until September 25, 2021, although subsidy rates for these programs will decline starting in July 2021.
The budget also announced other changes to these support programs, including that certain corporations will have to repay CEWS amounts where specified highly compensated executives earned more in the 2021 calendar year than the 2019 calendar year. In addition, these proposals allow the government to add qualifying periods to the CEWS, CERS and Lockdown Support until November 20, 2021, if warranted. Employers, qualifying tenants and property owners may want to review these proposals and determine whether they may benefit from the CRHP and the new changes to the CEWS and CERS.
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