Among the various programs to assist employers and employees during the
COVID-19 crisis, one of the potentially most significant for Members is the
federal promise of a 75% wage subsidy, through the just announced Canadian
Emergency Wage Subsidy.
The Wage Subsidy will cover qualifying businesses for up to 3 months,
retroactive to March 15, 2020, to help businesses keep employees on, and
hopefully return laid off workers to, the payroll.
Businesses will be able to apply online through a soon to be announced
Canada Revenue Agency Portal. We will update Members on this when the portal
is set up.
Some important points about the subsidy:
- Tied to lost revenue, not employer size
- Open to any Employer that has lost at least 30 per cent of revenue
(year over year for March, April and May) due to COVID-19 - Must re-apply monthly
- Will provide up to $847 per employee per week (for the first
$58,700 worth of salary) - Employers are ‘expected’ to do their best to ‘top up’ employees
for the remaining 25% of wages
DETAILS on this program as well as other federal business support programs,
such as $40,000 interest free loans, tax payment deferral and HST remittance
deferrals can be found here:
https://www.canada.ca/en/department-finance/economic-response-plan/covid19-b
usinesses.html
