April 14 – Ontario’s State of Emergency Extension & The Canada Economic Wage Subsidy Program (CEWS)
To all staff:
Today Ontario’s Parliament extended Ontario’s State of Emergency for a further 28 days until May 12th. It is Premier Ford’s hope that the additional measures taken will help flatten the curve and the spread of Covid-19. The impact of all government measures taken worldwide to fight the Covid-19 pandemic have definitely taken a toll on the economic landscape worldwide. These measures are necessary in order to win the fight against Covid-19.
As you know our business has been greatly impacted by the Covid-19 pandemic and we continue to operate with the minimal amount of staff and overall expense to survive during these very difficult times. In conjunction with the State of Emergency 28 day extension, our temporary layoffs will continue as well. It is our hope that these necessary measures will enable us to provide the financial stability that our company needs to get past the current economic hardships.
The Government of Canada has introduced the Canada Economic Wage Subsidy Program (CEWS) in an effort to help businesses struggling due to the Covid-19 crisis to keep and rehire their employees. The 12 week program requires employers to meet certain criteria to be eligible for the subsidy. We had a significant decline in business in March but our growth year over year, based on orders we had in the pipeline from January and February, put us in a position where we did not qualify for the March subsidy.
Going forward, the subsidy requires that employers submit their application separately for the months of April and May based on payroll periods that end after the month. For example, April’s application will include the payroll period from April 12th to May 9th. The government will reimburse employers 6 weeks after receiving the application. This means that employers have the financial hardship of funding the additional payroll for a period of 8 to 9 weeks before receiving any subsidy back from the government. Even though we will most likely meet the criteria for the subsidy in April, this will not be a financially feasible option for ACI. We must continue to operate with the minimal amount of expense to remain financially stable.
We will continue to monitor all government and health releases and will relay all pertinent information to you. Should you wish to speak to any members of the senior management team, please feel free to leave a message on this posting or call us directly. We are here to answer any questions that you may have.
Be safe and stay healthy.