The Canada Emergency Wage Subsidy (75% Wage Subsidy)
There have been inquiries from businesses requesting information about The Canada Emergency Wage Subsidy. The Canada Emergency Wage Subsidy provides eligible employers 75% of the first $58,700 normally earned by employees which would represent a benefit of up to $847 per week. The subsidy will be available for a 12-week period from March 15 to June 6, 2020 and can be retroactive to March 15.
- Some key points:
Eligible employers would include individuals, taxable corporations, and partnerships consisting of eligible employers as well as non-profit organizations and registered charities
- Eligible employers will have to show at least a 30% drop in gross revenues from arms-length sources (unrelated income) in March, April and/or May. The employer will need to provide information to the CRA showing the decrease in revenue in comparison to the prior year. Example. March 2020 over March 2019 for period March 15 to April 11. Additional details are show in the Government of Canada link below.
- Employers must make their best efforts to top-up employee’s salaries to bring them to pre-crisis levels.
- Eligible employers would be able to apply for the Canada Emergency Wage Subsidy through the Canada Revenue Agency’s My Business Account portal as well as a web-based application.
- Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees.
Additional detailed information from the Government of Canada:
My Business Account portal link:
Below is a link for Justin Trudeau addressing the subsidy:
More information about the application process and additional requirements will be made available shortly.
For additional assistance please email us at firstname.lastname@example.org or call (587) 316-5070. We are here to help.
Please practice social distancing, stay healthy, stay safe and most importantly stay positive, we will get through all of this together