Canadian Government – Update to 75% Wage Subsidy
THE CANADIAN PRESS/Sean Kilpatrick
UPDATE from Prime Minister on the 75% Wage Subsidy and Benefits for individuals
April 8, 2020, Prime Minister Trudeau gave details to changes that would be made to the 75% Wage Subsidy as well as Benefits for Individuals.
Canada Emergency Wage Subsidy (CEWS):
- Eligibility – 15% decline in revenue for month of March (rather than 30% as originally announced) will qualify employers for the subsidy. A 30% decline will still be required for subsequent periods.
- Eligibility – Employers may also use January or February of 2020 as the benchmark for decline in revenue.
- Eligibility – NPOs and Charities will have the option to include/exclude government funding in calculating revenue.
- Aiming to deliver this program within 3 weeks.
- Parliament will need to be recalled to pass legislation on this subsidy.
Benefits for Individuals:
- The Prime Minister repeated his previous comments that the CERB (Canada Emergency Response Benefit), while helping many Canadians, does not reach everyone who needs assistance.
- The Government is looking at extending support to seniors, students, individuals who experience a drop in income but are still earning limited amounts, and those working in long term care.
- Enhancements to the Canada Summer Job Program, including:
- 100% subsidy for students;
- Extend job placements to winter to consider jobs starting later; and
- Extend program to allow for part-time workers.
Employment and Social Development Canada: https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html
As the situation develops further, there may be additional government measures, or modifications to those already announced.
This post was created using the material from Video Tax News – https://www.videotax.com/