As recently announced by the federal government, the proposed Canada Emergency Wage Subsidy would cover 75 per cent of salaries for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. Employers of all sizes and across all sectors of the economy would be eligible with the exception of public sector entities.
This program is designed to help employers hardest hit by the COVID-19 pandemic to keep and retain workers.
Organizations that do not qualify for the Canada Emergency Wage Subsidy may qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, 2020.
Eligible employers would be able to access the Canada
Emergency Wage Subsidy by applying through a Canada Revenue Agency online
portal. More details on how to apply will follow soon.
There are a few conditions in order to be eligible for the wage subsidiary, which include the following:
Sales Decline year over year: this subsidy
would be available to eligible employers that see a drop of at least 15 per
cent of their revenue
Revenue calculation: Revenue would be calculated using the
employer’s normal accounting method, and would exclude revenues from
extraordinary items and amounts on account of capital.
Eligible Periods:
|
|
Claiming period |
Reference period for eligibility |
|
Period 1 |
March 15 – April 11 |
March 2020 over March 2019 |
|
Period 2 |
April 12 – May 9 |
April 2020 over April 2019 |
|
Period 3 |
May 10 – June 6 |
May 2020 over May 2019 |
Amount of Subsidy
The subsidy amount for a given employee on eligible remuneration paid between March 15 and June 6, 2020 would be the greater of:
1) 75 per cent of the amount of remuneration paid, up to a maximum benefit of $847 per week; and
2) the amount of remuneration paid, up to a maximum benefit of
$847 per week or 75 per cent of the employee’s pre-crisis weekly remuneration,
whichever is less.
MP Group Advisory Services:
Payroll Subsidies | Tax Credits and Deferrals | Cash Flow Management | Projections
Clients seeking professionals to help their business manage the COVID-19 outbreak and economic slowdown. We support our clients during this time for advisory services to strengthen your balance sheet. Our team can consult on financing for working capital, payroll subsidies and cash flow management.