Canada: Proposed expansion of wage subsidy relief measures (COVID-19)

Canada: Proposed wage subsidy relief measures

More employers could be eligible for the 75% Canada emergency wage subsidy under proposed changes to the eligibility requirements contained in pending legislation.

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The proposed changes (which have only received first reading and may be revised during the parliamentary process) would:

  • Allow employers with “paymaster arrangements” to qualify for the 75% Canada emergency wage subsidy
  • Provide that certain legislative and regulatory time limits could not be extended past 31 December 2020
  • Impose new penalties for applicants who make false or misleading claims for the Canada Emergency Response Benefit (CERB)

Currently, it is not certain if or when these proposals would be enacted into law because the bill does not at present have enough support to pass, with Canada's current minority government. It is also unclear whether there could be changes to this legislation before it could be passed and enacted into law.

Read a June 2020 report prepared by the KPMG member firm in Canada

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