Canadian Government – Update to 75% Wage Subsidy

Apr 8, 2020Corporation Tax, Employees, Management

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.

CEWS: https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html

CRA: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update.html

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/

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