On March 3, 2021, the Department of
Finance announced details on the
Canada Emergency Wage Subsidy
(CEWS) and Canada Emergency
Rent Subsidy (CERS) for the March
14 – June 5 periods. Later, the Federal
Budget (April 19, 2021) announced an
extension of these programs to
September 25, 2021.
Revenue comparison reference periods
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, the prior reference month to be used when
comparing average monthly revenues from March onwards
would be changed. Rather than comparing to the same
month in 2020, the same month from 2019 would be used.
For example, March 2021 revenues would be compared to
March 2019 revenues rather than March 2020 revenues.
For the periods between March 14 and July 3, 2021, the
maximum CEWS subsidy rate is 75%, while the maximum CERS rate is 65%. Subsequently, the maximum rates for
both CEWS and CERS will be the same, and decline
gradually: 60% (July 4 – July 31), 40% (August 1 – August
28), and 20% (August 29 – September 25). The additional
lockdown support to CERS will remain at 25% for the entire
period (March 14 – September 25).

Both CERS and CEWS applications are due 180 days after
the end of the qualifying period.

CRA has recently advised that they may accept a late-filed
application in exceptional circumstances. Requests must be
made before the later of May 21, 2021 and 30 days after the
filing deadline.

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