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Wondering about Canada’s 75% Emergency Wage Subsidy?

Here is what we know so far about Canada’s Emergency Wage Subsidy, a government program helping businesses avoid having to lay-off their employees during the Covid-19 Pandemic. We will be updating this article as new details are released.

The Canada Emergency Wage Subsidy is for businesses small and large – there is no minimum employee requirement

In order to be eligible, companies must have seen a reduction in gross revenue of at least 15% in the month of March, 2020 and 30% in the following months, and you do have the option to choose January and February of this year as a reference period

Non-profit organizations and charities are eligible to apply, and they have the option to include or exclude government subsidies when calculating loss of revenue

The government of Canada will be subsidizing up to 75% of an employee’s salary on the first $58,700 that the employee earns. In other words, the maximum weekly subsidy would be equivalent to $847

This subsidy is retroactive as of March 15, 2020

Businesses may use this subsidy for up to three months (i.e. 12 weeks)

In the interest of all Canadians, the Government of Canada is asking business owners to use this subsidy in good faith and ONLY apply for the wage subsidy if there is a need for it. They ask that if you are still able to continue paying your employees their salary without the government’s help – to please continue doing so. They also ask companies to make up the other 25% if they are able to – with the Prime Minister stating on April 1, 2020 that those companies who do not pay the employee’s remaining 25% salary will have to “attest” or prove that they were unable to pay that balance

Businesses who do not meet the eligibility requirements but still apply for this government assistance – or otherwise make fraudulent claims in order to be deemed eligible – will have to repay the money given to the business plus additional penalty charges – and may even be subject to criminal charges

Businesses will apply for the Canadian salary subsidy via the Canada Revenue Agency

*SOURCE: Prime Minister Trudeau press briefings as well as the Government of Canada website.

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Wondering about Canada’s 75% Emergency Wage Subsidy?

Here is what we know so far about Canada’s Emergency Wage Subsidy, a government program helping businesses avoid having to lay-off their employees during the Covid-19 Pandemic. We will be updating this article as new details are released.

The Canada Emergency Wage Subsidy is for businesses small and large – there is no minimum employee requirement

In order to be eligible, companies must have seen a reduction in gross revenue of at least 15% in the month of March, 2020 and 30% in the following months, and you do have the option to choose January and February of this year as a reference period

Non-profit organizations and charities are eligible to apply, and they have the option to include or exclude government subsidies when calculating loss of revenue

The government of Canada will be subsidizing up to 75% of an employee’s salary on the first $58,700 that the employee earns. In other words, the maximum weekly subsidy would be equivalent to $847

This subsidy is retroactive as of March 15, 2020

Businesses may use this subsidy for up to three months (i.e. 12 weeks)

Businesses will apply for the Canadian salary subsidy via the Canada Revenue Agency

Have a Legal Concern? During this difficult time, we are offering FREE PHONE CONSULTATIONS for all legal matters (not just tax!) as well as Significantly Reduced Rates. (416) 907-8429 or Canada-wide (877) 882-9829

Hear From Our Clients

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