🙏Covid 19 - 75% Wage Subsidy
Yesterday, the Canada Emergency Wage Subsidy (CEWS) received Royal Assent. This subsidy will enable employers to re-hire workers previously laid off and to keep those who are already on payroll. The online application process starts on April 27, 2020, with funds on approved applications starting to be released on May 5, 2020.
You must have your wage subsidy calculation prepared before the application process, as well be setup with My Business Account or Represent a Client with CRA to apply as soon as the application process is open, or if you can’t get a My Business Account setup, you will need an online access code and use an alternative application process (web-portal).
Here is a “short-list” of specifics that I found very important. I encourage you to go to the resources tab on my website Holtco.ca or visit Canada.gc.ca for more details and links to calculators and online resources:
Application opens April 27, 2020;
You must be an eligible employer – revenues have dropped by at least 15% in March and 30% in April and May; Employers are only eligible if they had a payroll program account with CRA on March 18, 2020;
The subsidy is worth 75% of the amount of eligible remuneration actually paid, up to a maximum benefit of $847 per employee, per week;
You must rehire and pay such employees before you include them in your calculation for the subsidy;
Any benefit you (as an employer) have received from the 10% payroll subsidy program paid will reduce the amount available to be claimed under the 75% CEWS for that same period;
All wage subsidies are considered government assistance and will be included in the employer’s income;
Keep your records!
Stay Safe and Healthy 🤓