COVID Program Updates
On October 21, 2021 the federal government made a number of announcements with respect to COVID-19 measures.
Please note that all of the below items are proposals and have not received Royal Assent. It is possible there are further changes.
- The September 25 to October 23, 2021 period for the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) will be the last. This program will not be extended.
- The Canada Recovery Hiring Program (CRHP) will been extended until May 7, 2022 and is proposed to have the subsidy rate increased to 50 per cent. This program is for eligible employers with current revenue declines in a claim period above 10 per cent relative to the base period and who have, during a claim period, paid more eligible remuneration to eligible employees relative to such amounts paid during the base period of March 14, 2021 to April 10, 2021. Note that non-Canadian Controlled Private Corporations do not qualify for this program.
- Introduce two new targeted COVID relief programs
- The Tourism and Hospitality Recovery Program, which would provide support through the wage and rent subsidy programs, to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent.
- The Hardest-Hit Business Recovery Program, which would provide support through the wage and rent subsidy programs, would support other businesses that have faced deep losses, with a subsidy rate of up to 50 per cent.
- Applicants for these program will use a new “two-key” eligibility system whereby they will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month.
- Businesses that face temporary new local lockdowns will be eligible for up to the maximum amount of the wage and rent subsidy programs, during the local lockdown, regardless of losses over the course of the pandemic.
- These programs will be available until May 7, 2022, with the proposed subsidy rates available through to March 13, 2022. From March 13, 2022, to May 7, 2022, the subsidy rates will decrease by half.
- Establish the Canada Worker Lockdown Benefit which would provide $300 a week in income support to eligible workers should they be unable to work due to a local lockdown anytime between October 24, 2021 and May 7, 2022.
More details about these new programs can be found at the links below.
Business Support - https://www.canada.ca/en/department-finance/news/2021/10/targeting-covid-19-support-measures.html
Individual Support - https://www.canada.ca/en/department-finance/news/2021/10/the-canada-worker-lockdown-benefit.html
Once this legislation receive approval, we will inform you of any changes.
Please reach out to your Roth Mosey contact to determine how this new legislation will impact you. We are here to help!