Good Morning for those of you following I am sure you heard more detailed information released yesterday. Below are some key updates, if you need support navigating this information or working
through what may be best for your business, contact us.
Canada Emergency Wage Subsidy
Eligible business that apply will receive direct payments for 75% of the total weekly remuneration (up to a max $847 per week). Employers are needed to top up the remaining 25% however if an employer cannot top-up despite all the efforts 75% paid by the government can be passed on to the employees. Employers are expected to where possible to maintain existing employees’ pre-crisis employment earnings.
Employee's pre-crisis weekly remuneration is considered. What this means is the employer would be eligible to receive the amount based on either current earnings or pre-crisis earnings. So in a situation that earnings are dramatically less, like they are for many the employer could still receive the subsidy based on pre-crisis earnings.
Timeline March 15 to June 6
Details on eligibility and the 30% revenue decrease are now provided (link below)
Applications will be through my business account - if you are not set up, recommend signing up ASAP.
Employers can't receive the subsidy for an employee for weeks that that employee is receiving the Canada Emergency Response Benefit CERB (the 4 week period where CERB is received)
This benefit goes to the employee - there will be systems to ensure compliance, including potential repayment and penalties.
Details on this wage subsidy can be found here: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html
10% Wage Subsidy Program
Small Employer Wage Subsidy (10%) still in Place (remuneration paid from March 18 to before June 20, 2020) details can be found here: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html