Dear Readers,
The Government has announced the proposed details of the 75 per cent wage subsidy to businesses, which they have branded the Canada Emergency Wage Subsidy and is subject to Parliamentary approval. Eligible employers include individuals, taxable corporations, and partnerships consisting of eligible employers as well as non‑profit organizations and registered charities. In order to qualify for the subsidy, employers must have experienced a drop of at least 30 per cent of your revenues within the eligible period to receive the subsidy.
Revenue is calculated using the normal accounting method of the applicant. For non-profits and charities, the government will continue to work with the sectors to ensure the definition of revenue is appropriate to their specific circumstances. The subsidy amount for a given employee on eligible remuneration paid between March 15 and June 6, 2020 would be the greater of 75 per cent of the amount of remuneration paid, up to a maximum benefit of $847 per week; and the amount of remuneration paid, up to a maximum benefit of $847 per week or 75 per cent of the employee’s pre-crisis weekly remuneration, whichever is less.
Eligible remuneration may include salary, wages, and other remuneration. These are amounts for which employers would generally be required to withhold or deduct amounts to remit to the Receiver General on account of an employee’s income tax obligation. Businesses would be expected, where possible, to maintain existing employees’ pre-crisis employment earnings. There would be no overall limit on the subsidy amount that an eligible employer may claim. Employers must make their best effort to top-up employees’ salaries to bring them to pre-crisis levels. Eligibility would generally be determined by the change in monthly revenues, year-over-year, for the calendar month in which the period began. For businesses established after February 2019, eligibility would be determined by comparing monthly revenues to a reasonable benchmark.
To apply, go to the CRA My Business Account portal. Please, remember proof of a 30% drop in revenue is required. Also, records demonstrating a reduction in arm’s-length revenues and of remuneration paid to employees must be kept. I will provide more details if they become available or should anything change.
Sincerely,
Cheryl Gallant, M.P. Renfrew-Nipissing-Pembroke
