The Canadian Emergency Wage Subside is a tentative Federal Financial Program legislated in support of businesses affected by COVID-19.
CANADIAN EMERGENCY WAGE SUBSIDY
- Eligible employers who suffer a drop in gross revenues of at least 30% in March, April or May, when compared to the same month in 2019, will be able to access the subsidy.
- Eligible employers include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
- For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near future.
- An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
- $71 billion devoted to wage subsidy.
- This subsidy will apply at rate of 75% of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program will be in place for a 12-week period, from March 15 to June 6, 2020.
- Organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
HOW TO APPLY
Businesses can apply online for the subsidy program through a CRA portal that will soon be available (approximately three weeks from April 1, 2020), with funds being released to eligible businesses in approximately six weeks.