The federal government will offer a 75% wage subsidy to all businesses that have lost 15% of their gross revenue as a result of COVID-19 pandemic. Sole proprietorship, partnerships, non-profits, and charities are also eligible.
Employers will now only have to show that they have experienced a 15% reduction in revenue in March 2020 to claim the subsidy (instead of a 30% reduction), and indicated that employers can also choose to use an average of revenue for January 2020 and February 2020 to compare to their revenue for March, April and May 2020, instead of the equivalent month from 2019.
The government also noted that it will offer additional flexibility for the revenue loss calculation to registered charities and non-profit organizations. As well, the government announced that employers eligible for the Canada Emergency Wage Subsidy will be entitled to receive a 100% refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan.
HOW MUCH, FOR HOW LONG
The program will be in effect for three months and companies will have to reapply each month — demonstrating, for example, they qualify.
The 75% wage subsidy will cover annual earnings up to $58,700 — or $1,129 a week in pre-crisis earnings. So the maximum subsidy for each employee would be $847 a week.
The program is retroactive to March 15.
While encouraged to pay the additional 25% of pre-crisis wages to their workers companies that are struggling financially will not be required to do so.
Please note: Applicants who provide false or misleading information to obtain access to this benefit, or who misuse funds obtained under the program may be fined or incarcerated.
10% Wage Subsidy Program Continues:
Very important: for businesses that did not see a 30% drop in revenue. The 10% wage subsidy still applies. The subsidy is equal to 10% of the remuneration you pay between March 18, 2020, and June 20, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer.
However, if you also qualify for the larger 75 per cent subsidy — the CEWS — then the money Ottawa sends will be adjusted downward to account for any payments made through that separate program.