*Information courtesy of the PACT Newsletter
(April 1, 2020): The Government of Canada announced today the details of their new Canada Emergency Wage Subsidy, which will need to be passed by Parliament next week in order to come into effect. Eligibility details announced today included:
Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, would be able to access the subsidy. Please be aware that the organization will have to apply on a month basis for this subsidy.
Eligible employers would include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
Additional details:
The subsidy will apply at rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program will be in place retroactively for a 12-week period, from March 15 to June 6, 2020.
Minister Morneau was asked if this program would be extended beyond 3 months and while he said it is to early to tell, he did not rule it out stating that they would do what is necessary to support organizations facing hardship.
Businesses can apply online for the subsidy program through a CRA portal that will be made available soon (approximately three weeks), with money flowing in approximately six weeks (by mid-May).
Anyone who chooses to use this money for fraudulent purposes will be subject to severe penalties/sanctions.
Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
When asked about how cases where a companies cannot show month to month losses but will nonetheless experience them, the Minister Morneau indicated that the goal is to get money out the door as soon as possible while details continue to be hammered out, but to continue documenting losses.
The number of employees a company has will not determine eligibility.
The subsidy will be a direct payment to the company so they can pay employees.
The Minister also added that companies can use the wage subsidy to bring employees who were let go back on staff
For more information, please see the government news release.
コメント