More details about the federal government's new wage subsidy, intended to encourage employers to avoid lay offs and keep employees on the payroll:
NEW 75% CANADA EMERGENCY WAGE SUBSIDY – ALL EMPLOYERS [REFUND]:
- all employees are eligible, except public sector;
- 75 per cent wage subsidy on the first $58,700 normally earned by employees [a benefit of up to $847 per week];
- will be available a 12-week period, from March 15 to June 6, 2020;
- government will refund the wage subsidy; not an adjustment to income tax source deductions, etc.
- employer must show a drop in gross revenues of at least 30 per cent in March, April or May, compared to the same month in 2019;
- non-profit organizations and registered charities 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;
- government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19 – further details to follow;
- 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;
- eligible will be able to access the subsidy by applying through a Canada Revenue Agency online portal, which should be available within three to six weeks;
- does not replace the previously announced 10% wage subsidy for eligible employers;
- employers eligible for both subsidies for a period, any benefit from the 10% wage subsidy an employer receives is expected to reduce the amount available to that employer from the Canada Emergency Wage Subsidy;
- more information here: https://www.canada.ca/en/department-finance/news/2020/04/government-announces-details-of-the-canada-emergency-wage-subsidy-to-help-businesses-keep-canadians-in-their-jobs.html
EXISTING 10% WAGE SUBSIDY [CREDIT; REDUCTION IN TAX PAYABLE]:
- small-and-medium business that do not suffer revenue reductions;
- still available for employers that do not qualify for the 75% subsidy;
- 10% wage subsidy for the period March 18 to before June 20;
- maximum subsidy of $1,375 per employee and $25,000 per employer;
- when the subsidy is calculated, reduce the current payroll remittance of income tax (but not EI nor CPP);
- employees’ pay and deductions remain unchanged; and
- more information here: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html#h1
NOTE:
Employees will not be able to receive both the Canada Emergency Wage Subsidy and the Canada Emergency Response Benefit (CERB).
You can apply for the CERB as of April 6.
NEW ONTARIO HELP FOR BUSINESSES TO SUPPLY PPE AND MEDICAL EQUIPMENT:
On April 1, 2020, the Ontario government announced the launch of a $50-million fund named the Ontario Together Fund.
The purpose of the fund is to “help businesses provide innovative solutions or retool their operations in order to manufacture essential medical supplies and equipment, including gowns, coveralls, masks, face shields, testing equipment and ventilators.”
The fund will be available to companies and organizations across the province.
Businesses may submit proposals to the government through the Ontario Together portal.
