In mid-May, the Government of Canada announced that it would extend the Canada Emergency Wage Subsidy to August 29, 2020 from its original end date of June 6, 2020. The Government of Canada will continue to monitor the needs of employers and employees and adjust the program as required.
Along with extending the timeline, the Government of Canada has also expanded its eligibility to include a broader range of businesses.
Currently, in order for Indigenous government-owned corporations to be eligible for the CEWS, they must be taxable. The government is extending eligibility for the CEWS to include Indigenous government-owned corporations that are carrying on a business and are tax-exempt under paragraph 149(1)(d.5) of the Income Tax Act, as well as their wholly-owned subsidiaries that are carrying on a business and are tax-exempt under paragraph 149(1)(d.6) of the Income Tax Act. As well, partnerships where each partner of the partnership is either an Indigenous government or an eligible employer will be eligible entities for purposes of the CEWS. This rule is in addition to the rule for partnerships outlined above. Indigenous governments would include First Nation bands, self-governing Indigenous governments and other comparable Indigenous governing bodies.
This change is retroactive to April 11, 2020, which means that it applies to the first qualifying period starting March 15, 2020 and subsequent qualifying periods.
Visit the Government of Canada website