Yesterday the Department of Finance announced its proposed rules for the Emergency Wage Subsidy.

All employers other than public bodies (municipalities, universities, hospitals etc.) will be eligible to apply if they have seen a 30% drop in gross revenue from arm’s length sources. This will be evaluated for each of March, April and May 2020 compared to the same month in 2019. The claim period will be four week blocks beginning March 15th.

The subsidy will be calculated for each employee based on a number of factors including actual remuneration paid in the week, and pre-crisis remuneration. The maximum benefit is 75% of the pre-crisis remuneration with a limit of $847 per week. Employers are encouraged, but not strictly required, to top up employee pay to the level of pre-crisis earnings.

For non-arm’s length employees the benefit is limited to 75% of the lesser of actual wages paid in the period or the pre-crisis wages.

Application will be through a CRA portal in My Business Account with payments expected to begin in six weeks.

The previously announced 10% subsidy remains in place, and any claims under the 10% program will reduce the base for the 75% benefit.

Claims will be subject to audit and the government is proposing new penalties including criminal charges for fraudulent claims.

There are likely to be changes in the final legislation.

Read the official release here.

For questions regarding these announcements and what they mean for you or your business, please contact us.

The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Accordingly, the information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. While we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Again, no one should act upon any information contained herein without seeking appropriate professional advice after a thorough examination of their particular situation.