COVID-19 – NEW HELP FOR SMALL BUSINESSES – WAGE SUBSIDY AND GUARANTEED LOANS
The federal government has now announced more financial support to small and medium-sized businesses, including to avoid lay offs and try to maintain payroll during the pandemic.
Specifically, a new 75% wage subsidy has been declared. Previously the federal Government has announced a 10% wage subsidy.
Secondly, small and medium-sized business can apply for and obtain loans, that the federal Government will GUARANTEE for up to $40,000.
These loans must be interest-free for the first year of the loan.
If you qualify as an eligible small business and you maintain employing your staff on a full-time basis, you may reduce the amount of tax you pay at end-of-month payroll by 75% of wages paid (i.e., an indirect wage subsidy).
You, or your payroll agent, will have to self-calculate your monthly wage subsidy, which you realize by way of reduced tax deductions at source.
Get more information and keep updated here, including when to begin the wage subsidy program:
March 27th, 2020
Posted in COVID-19