COVID-19: Federal government announces details of the Canada Emergency Wage Subsidy
The subsidy will apply at a rate of 75 per cent of the first $58,700 normally earned by employees. This represents a benefit of up to $847 per week. The program will be in place for a 12-week period beginning March 15 to June 6, 2020.
An eligible employer’s entitlement will be based on the salary or wages actually paid to employees. The subsidy is intended to allow employers to retain employees during this difficult time and to re-hire previously laid-off workers.
Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same months in 2019 can access this subsidy.
Eligible employers include employers of all sizes and across all sectors of the economy. The subsidy is not restricted to Canadian-controlled private corporations or small and medium sized employers.
Eligible employers will be able to access the subsidy by applying through a Canada Revenue Agency online portal.
The government will be working with non-profit organizations and registered charities to ensure that the definition of revenue is appropriate to their circumstances. Additional support for this sector, particularly those involved in the front-line response to COVID-19, is being considered and further details will be announced.
Employers that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 percent of remuneration paid from March 18 to June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
Please contact your Fuller Landau engagement partner or manager for any questions.