I am providing you with updates on the 75% Canada Emergency Wage Subsidy program, which is separate from the 10% Temporary Wage Subsidy that was discussed early last week.
Program highlights for the 75% Emergency Wage Subsidy
Businesses with a 30% revenue loss (15% for March 2020 only) compared with the same month last year will be able to apply for a 75% Emergency Wage Subsidy for up to 12 weeks, retroactive to March 15, 2020. For example, if revenues in April 2020 were down 40% compared to April 2019, the business would be allowed to claim the Canadian Emergency Wage Subsidy.
The amount of subsidy per employee on eligible remuneration paid between March 15, 2020 to June 6, 2020 is calculated as the greater of:
- 75% of remuneration paid up to a maximum benefit of $847 per week
- Remuneration paid up to a maximum benefit of $847 per week or 75% of the employee’s pre-crisis weekly remuneration, whichever is less.
It is important to note that businesses who are eligible for both the 75% Canada Emergency Wage Subsidy and the 10% Temporary Wage Subsidy for a period, any benefit received from the 10% Temporary Wage Subsidy would generally reduce the amount available to be claimed under the 75% Canada Emergency Wage Subsidy.
How would this affect the Canadian Emergency Response Benefit (CERB)?
Businesses would not be eligible to claim the Canada Emergency Wage Subsidy for remuneration paid to an employee if the same employee is eligible for the Canadian Emergency Response Benefit (CERB).
Businesses that are not eligible for the Canada Emergency Wage Subsidy would still be able to grant leave of absence to employees who will receive up to $2,000 a month.
What does this mean for your payroll?
Your payroll obligation remains the same. Your business must continue to remit all payroll deductions (CPP, EI, income tax) by the remittance due date. Your business will receive the enhanced wage subsidy after the application is filed and approved by the government.
How to apply
Businesses can apply for the subsidy program through the CRA’s My Business Account portal or via a web-based application. More details about the application process will be released shortly.