On April 1, 2020 Minister of Finance, Bill Morneau provided further details on the Canada Emergency Wage Subsidy (“the Subsidy”), as follows:
- The Subsidy is available to businesses, both large and small, not-for-profit organizations and charities.
- The Subsidy will provide up to 75% of an employee’s wages for a 3 month period retroactive to March 15, 2020, to a maximum of $847 per week which is 75% of the first $58,700 of an employee’s annual salary.
- To qualify, employers must demonstrate that their revenue from business operations has fallen by at least 30% in March, April or May 2020 when compared to the same month in the prior year as a result of the COVID-19 pandemic. Support for the reduction and Subsidy amount will need to be kept and employers will have to reapply for the Subsidy each month.
- There is no overall limit on the Subsidy amount that an eligible employer may claim.
- Employers must make their best effort to top-up employee’s salaries to bring them to pre-crisis levels.
- Employers that do not qualify for the Subsidy continue to qualify for the previously announced 10 percent wage subsidy.
- The amount of the Subsidy received by an employer is considered government assistance and is to be included in the employer’s taxable income.
- The program will be administered by the Canada Revenue Agency through a portal on its website, which is expected to be available in 3-6 weeks.
- Employers are encouraged to sign up for direct deposit through the My Business Account service with the Canada Revenue Agency (CRA) in order to receive the Subsidy as quickly as possible.
For further details, please click on the following Government of Canada releases.
https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html
Additional details on the Subsidy will be provided as soon as they become available.
For further information, please contact your Lipton advisor.
