On November 2, 2020, Bill C-9 was introduced and implemented some proposed changes to Canada Emergency Wage Subsidy and Canada Emergency Rent Support programs. This Bill received Royal Assent on November 19, 2020. The proposed changes are summarized below:

Canada Emergency Wage Subsidy (CEWS):

• The program will be extended to June 30, 2021
• The subsidy will remain at the current rate of up to a maximum of 65% of eligible wages until December 19, 2020. This was previously set to decline to 45% in November.
• In addition, the revenue-decline test for the base subsidy and the top-up wage subsidy will be harmonized from September 27, 2020 onwards. 

Note: the top-up wage subsidy was previously based on the revenue drop over the preceding three months compared to the same months in the prior year OR under the alternative method of comparing monthly revenues with the average of its January 2020 and February 2020 revenues.

• There is a Safe Harbour rule for the top-up subsidy portion,  which would entitle an employer to a top-up subsidy rate that is no less than it would have received under the three- month revenue decline test or the alternative method test. This treatment is applicable to periods from September 27, 2020 to December 19, 2020.