I’m attaching the link for the Federal Government’s Wage Subsidy Program. If you feel this might be a fit for your business I recommend reading it and getting ready for the opening of applications. Below I have condensed the document into 14 bullet points if you want the executive level of information to start.
The Canada Emergency Wage Subsidy (April 1, 2020)
1. 75% wage subsidy to eligible employers on the first $58,700 of an employee’s salary, approximately $847 per week.
2. Benefit will be retroactive to March 15, 2020, and will be in effect until June 6, 2020.
3. Businesses are eligible for a maximum of 12 weeks of this subsidy divided between 3 different periods. You must apply for the subsidy for each period listed below.
4. Eligibility will be for Individuals, taxable corporations, and partnerships consisting of eligible employers as well as non-profit organizations and registered charities.
5. Available only if the business has seen a drop in revenue of at least 30% over the period. Employers would be required to prove the decrease based on 2019 revenues.
6. There would be no overall limit on the subsidy amount that an eligible employer may claim.
7. For non-profits and charities, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their specific circumstances.
8. Employers must make their best effort to top-up employees’ salaries to bring them to pre-crisis levels. They have not specified if there will be penalties, but employers are expected to do their best. Additional information may be available on this next week should a business not be able to pay.
9. How to define pre-crisis weekly remuneration for employees will be provided in the coming days.
10. Employers will also be eligible for the subsidy for salaries and wages paid to new employees. Some additional clarification will be needed here.
|11.||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|
12. For eligible employers established after February 2019, eligibility would be determined by comparing monthly revenues to a reasonable benchmark. Still to be determined.
13. 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. More details about the application process will be made available shortly.
14. Wage subsidy received by an employer will be considered government assistance and be included in the employer’s taxable income. Assistance received will reduce the amount of remuneration expenses eligible for other federal tax credits calculated on the same remuneration. (This sounds like an accountant bookkeeper question/issue)