Bill C-20 receives Royal Assent
"An act respecting further Covid-19 measures" has received Royal Assent.
What does this mean for your dealership?
The CEWS has been extended to November 21, 2020 and also leaves open the opportunity for a further extension to December 31, 2020.
Additionally, the CEWS calculation has been revised. The fixed requirement of a 30% revenue decline to qualify for the 75% subsidy is now based on a sliding scale. Eligible businesses can apply to receive a subsidy in proportion to their revenue decline. As of July 5, 2020 the subsidy amount will be calculated by using the total of the dealership's base wage subsidy and the top -up subsidy, however there is a "safe harbour" rule that provides for an alternate calculation for period 5 and 6.
If there are employees on leave, their calculation will differ under the new rules. There are also differing rules for periods 5 and 6 and for periods 7 and beyond.
There are also additional amendments that may apply to your dealership. They include an application deadline to January 31, 2021, flexible revenue calculation ( cash or accrual) and the ability to appeal a notice of determination. The payroll remittance requirements have also been loosened and the eligibility criteria also now has amendments that may impact amalgamations, asset sales,seasonal employees, baseline remuneration and the disqualification of some trusts.
For clarification on the details that may impact you, visit the Revenue Canada news release at https://www.canada.ca/en/department-finance/news/2020/07/supporting-canadian-workers-and-businesses-with-a-redesigned-canada-emergency-wage-subsidy.html or follow the CEWS website at https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html.