Update provided by:
Jason Easton
Chief of Staff
Office of the Minister of Small Business, Export Promotion and International Trade
Today, Finance Minister Bill Morneau, the Minister of Small Business, Export Promotion and International Trade, Mary Ng, and the Minister of Innovation, Science and Industry, Navdeep Bains, announced the details of the proposed Canada Emergency Wage Subsidy:
The Canada Emergency Wage Subsidy would apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.
- 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 month in 2019, would be able to access the subsidy.
- Eligible employers would include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
- For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
- An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details regarding how to apply for the program will follow.
Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
Provincial Child Care Supports for Essential Workers
THREAD: A new program has been introduced for the provision of child care services for essential workers. This will allow families to arrange for their own care, in a home environment.
— Premier of NL (@PremierofNL) April 1, 2020
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Re: Business Wage Subsidy
I work and run a non-traditional business and it allows me to remain in business for now while observing the new work enviroment. My business income does not allow a steady month to month income. Winter, spring and summer months over the last several years have been really slow with late summer, fall and early winter making up the bulk of my income.
The 75% wage subsidy is based on my business having a 30% reduction in income from the same month in the previous year. Some of these month I made a little over $3,000 for several month and only slightly more for several more. One or two contracts would put me over this amount for those month and disqualify me for the subsidy for that month. My business is not the only one in this boat.
Shouldn’t the 30% be based on the average monthly income for the last business fiscal year? Divide my total business income by 12. CRA can use my business T4’s from my accountants or I can sent it to them again or a one page statement from my accountant, whatever is most expedient.
This would cut down on the paper work and speed up the process, help get payments out quicker, and be more fair to businesses. Why should I be penalize for several bad months, and for doing my best to keep my business open and paying a salary.
Advanced Thermal Imaging Inc.
Thanks so much for your comment Tony. I agree that many business owners are similar. I will bring this up if the opportunity presents itself. The Atlantic Chamber of Commerce is sharing direct messages from business owners with the Federal Government so I will forward this along.