Temporary Wage Subsidy for Employers
In order to support businesses that are facing revenue losses and to help prevent lay-offs, the federal government has proposed a temporary wage subsidy to eligible small employers:
- Small businesses will get wage support by reducing how much they hand over in payroll deductions to the Canada Revenue Agency (CRA) rather than receiving a government cheque.
- The subsidy is equal to 10 per cent of the remuneration paid between March 18 and June 20, 2020, up to $1,375 per employee and a maximum of $25,000 total per employer.
- Companies can’t reduce Canada Pension Plan contributions or employment insurance (EI) premiums.
- Private companies are eligible for the subsidy if their earnings and other capital in Canada for the last year is less than $15 million.
- Companies who are closed or did not pay salary, wages, bonuses or other remuneration to an employee between March 18 and June 20, 2020 cannot receive the benefit
For more details and FAQs on the Temporary Wage Subsidy for Employers, click here.