COVID-19 What you need to know about the Canadian Emergency Wage Subsidy

Saturday, 04 April 2020 08:00.AM

To help businesses hold on to their employees, the federal government is providing, for up to three months, a temporary wage subsidy equal to 75% for the first $58,700 of salary, up to a maximum $847 per week. All businesses – the number of employees on the payroll doesn’t matter – that have seen revenue drop by 30% or more relative to the corresponding month last year (e.g. March 2020 vs March 2019) because of COVID-19 are eligible for the wage subsidy.

This measure is retroactive to March 15. Businesses can re-hire recently let-go workers and place them on subsidized wages. Businesses can apply for the wage subsidy through a Canada Revenue Agency web portal that will be launched within three weeks, and they can expect to receive their first payment within six weeks. Businesses will be required to re-apply for the wage subsidy each month. More information will be released in the coming days but you can find a backgrounder on the wage subsidy here.

SOURCE: Communitech