CERS

Expanded Eligibility to Lockdown Support Programs

On December 22, 2021 the government announced that it will:

  • Expand the Local Lockdown Program to include employers subject to capacity-limiting restrictions of 50% or more; and reduce the current-month revenue decline threshold requirement to 25% (it was previously 40%). Eligible employers will receive wage and rent subsidies from 25% up to a maximum of 75%, depending on their degree of revenue loss. The rate of subsidy will continue to be calculated on a 1:1 basis (e.g. 25% revenue decline = 25% subsidy). The 12-month revenue decline test continues to not be required in order to access this support.

  • Expand the Canada Worker Lockdown Benefit to include workers in regions where provincial or territorial governments have introduced capacity-limiting restrictions of 50% or more. Furthermore, these regulatory changes would include reducing the minimum number of days a lockdown order needs to be in place to meet the new definition to 7 consecutive days, down from 14 consecutive days. As announced previously, this benefit will provide $300 a week in income support to eligible workers who are directly affected by a COVID-19-related public health lockdown, and who have lost 50% or more of their income as a result.

These updated regulations will apply from December 19, 2021, to February 12, 2022, during which time it is expected that public health authorities will continue to implement “circuit-breaker” restrictions that limit the spread of the Omicron variant of COVID-19 across Canada.

Backgrounder

Application Portal for Modified Rent and Wage Subsidies Now Open

On December 21, 2021, the government of Canada announced that Bill C-2, which included extensions and updates to COVID-19 business subsidies, received Royal Assent. 

Numerous CRA webpages and resources have been updated to reflect these legislated changes. Applications for period 22 (Oct 24 – Nov 20, 2021) are now open for the following programs:

Once an applicant has determined that they are eligible for a subsidy pursuant to one of the aforementioned program criteria, applications for the wage and rent subsidies must be made separately.

Useful links:

CEWS/CERS Periods 14 to 17 revenue Comparison Change

The September 1, 2021 Canada Gazette published Regulations (Regulations Subsections 8901.2(2) and (3)) to implement the July 30, 2021 announcement that eligible entities which on March 1, 2019 were not carrying on business, or otherwise not carrying on their ordinary activities, would be permitted to elect to use the alternative approach for periods 14 to 17 (March 14 to July 3, 2021) if they chose the general approach for CEWS or CERS claims in period 5 or later. The 180-day deadline for applications or increases for period 14, which ended on April 10, 2021, will expire on October 7, 2021.

CEWS/CERS Details to June

On March 3, 2021, the Department of Finance has announced details for CEWS periods 14, 15 and 16, and CERS periods 7, 8 and 9 (March 14 – April 10, April 11 – May 8 and May 9 – June 5). 

The actual calculations will remain unchanged.

The reference periods will continue to use either of the two months ended prior to the end of the relevant period (so February or March, 2021 for CEWS period 14/CERS period 7). However rather than comparing March, 2021 and later months to the same calendar month one year ago, March, 2021 and subsequent months will be compared to the same calendar month in 2019.

An additional option for baseline remuneration calculation in respect of the final 3 periods was also added.

Press release

Backgrounder  

Draft legislation

CERS - Expansion to Lockdown Support for Owners with Non-Arm's Length Tenants

On February 26, 2021 the CRA website was updated to provide commentary on additional lockdown support availability for eligible property owners with tenants not at arm’s length. It notes:

The lockdown support portion of the CERS may be available to eligible property owners, if:

  • their tenant is not at arm’s length

  • the tenant uses the qualifying property in the course of its regular activities

  • that property is subject to a lockdown

  • the tenant must shut their doors or significantly restrict their activities under a public health order, and

  • the property owner meets all other applicable conditions required to qualify for lockdown support

Guidance link