CANADA EMERGENCY WAGE SUBSIDY (CEWS)
WHAT ARE THE CHANGES?
CEWS will be extended until December 2020.
Previously the CEWS was expected to end on August 29th, 2020.
HOW DOES THIS IMPACT YOU?
You may be eligible to receive a reimbursement of 75% of wages up to $847 per week for each staff member until December 2020 if you meet the requirements.
We are awaiting further details on requirement to qualify (i.e. whether the 30% reduction in billings/collection applies to this extension).
WHAT SHOULD I DO?
Continue to monitor your billings and/or collections. The 30% reduction in production/collection is still required for CEWS up until at least August 29, 2020.
Please note that there is a special rule in place for the CEWS in which you automatically qualify for CEWS for a given month if your billings/collections dropped 30% in the month prior.
For example, if you met the 30% drop in billings/collections in June 2020, you automatically qualify for the CEWS in July 2020 even if you don’t have a 30% drop in billings/collection in July.
To qualify for CEWS in August, you must meet the 30% drop in billings/collection in August, if billings/collection did not drop by at least 30% drop in July. In other words, to qualify for CEWS, you must have at least a 30% drop in billings/collection in the current month or the month prior.
PREVIOUS ANNOUNCEMENT FOR PRE-CRISIS WEEKLY WAGE CALCULATION
The government previously announced that you can use the wages paid between March 1, 2019 to May 31, 2019 as an alternative to calculate the average pre-crisis weekly wage. However, this change has not yet passed into law. If and when the change becomes law, it is expected to be retroactive to the first claim period.
CANADA EMERGENCY RESPONSE BENEFIT (CERB)
WHAT ARE THE CHANGES?
CERB will not be extended beyond the 24 weeks (6 months) of benefits currently available.
HOW DOES THIS IMPACT YOU?
Staff who have not returned to work for COVID-19 related reasons will not be able to apply for CERB beyond 24 weeks (6 months) of CERB payments.
These employees may still be eligible for benefits under the EI program. Employers may be asked by staff to provide Record of Employments (ROEs) to apply for EI benefits if they did not previously receive one.
You may find that staff who were reluctant or declined to come back to work while receiving CERB may decide they wish to be rehired once the CERB ends.
WHAT SHOULD I DO?
Ensure you are able to produce ROE’s for staff. Your payroll provider can normally prepare these for you or you can do them via ROE Web through Service Canada. Speak with your employment lawyer on steps/protocols to take for rehiring. It may be a good opportunity to implement employment contracts during this time.
To view more COVID-19 news as it pertains to the dental profession, please click here.