TEMPORARY WAGE SUBSIDY – 10%

On April 1, 2020, the federal government announced that those organizations that do not qualify for the 75% Canada Emergency Wage Subsidy may be eligible for 10% wage subsidy.  This program was previously announced by the federal government on March 18, 2020.

Eligible Employers:

• Includes any person or partnershipthat employs at least one individual in Canada;

• Has a Canada Revenue Agency (CRA)payroll on March 18, 2020; and

• Any one of the following;

  • An Individual (other than a trust);

  • Partnership;

  • Non-profit organization;

  • Registered charity;

  • Canadian-controlled private corporation eligible for small business deduction.

Subsidy:

• 10% of the remuneration paid from March 18, 2020 to June 19, 2020;

• Maximum of $1,375 per employee and $25,000 per employer;

• Subsidy amount can be reduced from your current payroll remittance of federal, provincial, or territorial income tax (cannot reduce your remittance of Canada Pension Plan contributions or Employment Insurance premiums).

Employers Responsibilities:

To keep all records to support subsidy calculation.  This includes the following;

• the total remuneration paid from March 18, 2020 to June 19, 2020;

• the federal, provincial, or territorial income tax that was deducted from that remuneration; and

• the number of eligible employees paid in that period.

The information above is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.

No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.