Current and accurate as of April 1, 2020
Today, the Minister of Finance released further details on a new wage subsidy program at 75%, called the Canada Emergency Wage Subsidy. The Prime Minister and the Minister of Finance indicated that the intention of this program is to allow employees to continue to be paid and to be connected to their employers, to support our economy in remaining strong and sustaining the best position to rebuild rapidly when we are able to recover from the COVID-19 crisis.
This information is intended for non-unionized workers, so if you require information related to your unionized employees, please feel free to reach out and we will direct you to alternate sources of information.
Please note that this is a rapidly changing and evolving situation, and that this information is based on our best knowledge at the current time. Due to the unique circumstances of every business, not all information is applicable to all employers, so please feel free to contact us with any questions.
Q: Does my business qualify for the CANADA EMERGENCY WAGE SUBSIDY / THE 75% WAGE SUBSIDY announced by the Federal Government?
What are the requirements and how do I apply?
How to demonstrate a 30% decline?
Businesses are required to establish that there has been a 30% gross revenue decline compared to the same month last year. Put simply, businesses will show what their gross revenue was for March, April or May 2019 compared to what the gross revenue is for March, April, or May 2020. Businesses will need to reapply each month.
How do we apply for the Canada Emergency Wage Subsidy?
Businesses will apply online through a Canada Revenue Agency portal, which will be available within the next 3 to 6 weeks.
Businesses will be required to reapply each month. Amounts will be provided to businesses as employers, not directly to employees.
Businesses will also be required to attest that, as employers, they are doing everything they can to pay their employees the remaining 25%.
What is the amount of the Subsidy?
The subsidy is 75% of an employees’ wages, up to a maximum of $847 per week, per employee. In order to qualify for this maximum amount the employee must be earning $58,700 per year or more.
What types of businesses qualify for the subsidy?
All businesses who are not publicly funded can qualify, regardless of size.
This includes partnerships, individuals, non-profits, and registered charities.
Though not specifically released yet, we assume businesses will have to have a business number and payroll program account with CRA, and must be paying salaries, wages, bonuses, or other remuneration to employees who are employed in Canada.
Recognizing that things are changing rapidly, and each business and workforce is unique, please do not hesitate to reach out with questions, concerns, or if we can be of assistance in any way.
Also, we note that this information is current as of business on April 1, 2020 and will be subject to change following this date as further details of this program are being developed and released by the federal government.