Wage Subsidy for Employers

By March 23, 2020Covid-19, Uncategorized
[] [/]To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.

To be eligible, corporations must have had a payroll account with the Canada Revenue Agency as of March 18, and have had less than $15-million in taxable capital employed in Canada in 2019.

For detailed information on how to calculate the subsidy and other frequently asked questions, please visit the CRA website.

 

Jess Watt

Author Jess Watt

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