Employers in the City of Kawartha Lakes, your updated Cheat Sheet of nee-to-know tips for the emergency wage subsidy and taking advantage of this benefit:
- 75% of employees’ wages for up to 12 weeks
- Retroactive to Mar. 15
- Intend to promote recall and rehiring of employees laid off or terminated due to COVID-19; resume normal operations, if possible
- Three claim periods – Mar. 15 to June 6, 2020
- Available to most individuals, businesses and non-profits qualify to apply – must be an “eligible employer”
- Maximum of $847 per employee per week – likely to be greater than EI (55% up to a maximum of $573 weekly and the CERB, $500 weekly, taxable)
- Challenge for employees earning greater than $58,000 annually
- No overall limit
- Retroactive to Mar. 15, 2020
- Applies to even newly hired employees
- If you qualify for Mar. 2020, automatically qualify for Apr. 2020 (i.e., auto re-qualification applies to every claim period)
- Employers not required to top up employees’ pay to pre-subsidy amounts
- Must demonstrate reduction in monthly revenues of: (a) at least 15% in March; and (b) 30% in April and/or May, 2020, as compared to either: (i) that same month in 2019; or (ii) the average of your Jan. and Feb. 2020 total, gross revenue
- Can use either an as-earned (i.e., invoicing) or as-paid accrual, but must use the same calculation in every claim period – cannot change
- Affiliated employers can apply individually or on a consolidated basis
- Apply on the CRA’s Web site – use the My Business portal
- Taxable benefit to employers (as government assistance)
- Use the calculator on the CRA’s Web site to estimate subsidy before submitting the application online
- Subsidy will be reduced by the eligible claim for the 10% subsidy in each claim period (i.e., taken at source by employers; not a direct reimbursement)
- Full refund for EI and CPP contributions for laid off/furloughed employees if on “leave with pay” during the claim periods (i.e., if “leave with pay” permitted by either the Employment Standards Act or the Canada Labour Code)
- Honour system applies – penalty is repayment in full, plus 25% penalty on subsidy received
- Should consult with accountant on information relied on for application
- Note: not available for employee if, during the claim period, there were 14 consecutive or more days without pay [Example: if employee laid off with no pay on Apr. 11, but recalled on May 9, but he/she does not receive pay for at least 14 consecutive days during the lay off period (between Apr. 11 to May 9, no subsidy available for that employee during the claim period – employer is responsible for ensuring an each employee has not been paid “eligible remuneration” for 14 or more consecutive days during the claim period
- Laid off employees can be retroactively eligible, if rehired and retro pay and status meet the “eligibility criteria”
- Employees cannot receive both the CERB and the subsidized income
- Employees responsible for determining CERB entitlement, not employers
- Employers can claim the subsidy for employees who received the CERB, if otherwise eligible – employee required to pay back the CERB if no longer qualify during the 4-week claim period in question
- Does not replace the 10% wage subsidy (does not require a revenue reduction; reduced withholdings at source to receive), but cannot receive both
- Employers can claim for employees on “leave with pay”
