COVID-19 continues to impact business owners and employees.
To help businesses stay afloat during quarantine and to make it easier for Canadian companies to resume normal operations when the pandemic ends, the federal government has revealed that it will provide employers with a 75% wage subsidy, termed the Canada Emergency Wage Subsidy.
If your business is eligible, you can reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA).
What you need to know:
Companies of all sizes that have had a reduction in revenue of 30% will be eligible regardless of employee count
The subsidy will apply to 75% of the first $58,700 earned
Employers are encouraged to top up their employee’s wages with the remaining 25% of their salaries
Payments will be retroactive to March 15, 2020
The program will be in place for 12 weeks, from Mach 15 to June 6, 2020
What if my business doesn’t qualify?
Companies that don’t meet the requirements for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10% of remuneration from March 18 to June 20, 2020, up to a maximum of $1,375 per employee and $25,000 per employer.
Period 1: March 15 – April 11 (reference period for eligibility will be March 2020 over March 2019)
Period 2: April 12 – May 9 (reference period for eligibility will be April 2020 over April 2019)
Period 3: May 10 – June 6 (reference period will be May 2020 over May 2019)
How to Apply:
To apply for this program, business owners will need to access their Canada Revenue Agency’s My Business Account and a web-based application. Employers need to keep documentation demonstrating their reduction in arm’s-length revenues and remuneration paid to employees.
More information on the application dates will be released shortly by the government; please stay tuned.
Free Emergency Wage Subsidy Advice For Businesses:
We’re here to assist you during this difficult time. Please call us at 1-866-315-8822 between 9 am – 5 pm if you need any help at all.