The Canadian Government recently clarified a few points on the 75% wage subsidy. Here are some of the main points:
* The purpose is to prevent future job losses and encourage employers to re-hire workers previously laid off
* Eligible employers are proprietorships, corporations, partnerships, non-profits and registered charities
* You need to have a decrease in revenue of at least 30% from the previous year’s same month for the following periods:
* The amount of the subsidy is the greater of 75% of the of remuneration paid up to $847 per week or 75% of the employee’s pre-crisis remuneration up to $847 per week.
* The above point means that some business may qualify for 100% of their salaries paid up to $847 per week (if they are paying their employees 75% of their wage now($847) and their employees made $1,129.33 weekly pre-crisis).
* Eligible remuneration is salary, wages and other remuneration (Note: it is unclear if ‘other remuneration’ will include dividends paid from corporations, we are hoping for clarification in the final roll out of information).
* A special rule for owners (or anyone related to owners): Owner’s eligible remuneration must be based on their pre-crisis weekly remuneration – good news for shareholder employees.
* Apply through the “My Business” account and another web based application process (more details to come), if you haven’t signed up for a “My Business” account, please follow this link and do so ( https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html, click “CRA Register” at the bottom of the page and follow the steps)
* If your revenue is down but not a full 30%, you can still use the 10% wage subsidy program (the new program does not replace it); however, you cannot claim both – it was previously thought that this had been replaced but is, in fact, still available for those have are still operating and have not had a 30% or more drop in revenues.
Here is a link with more information: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html
Please share this with anyone who you feel may benefit from these emails and contact me if you have any questions. Note that more information is likely coming today and tomorrow.
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Tammy Leslie, CPA, CGA, CA
Palmer Leslie, Chartered Professional Accountants
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