I have seen info on the subsidy coming in from a number of sources, but here is one that makes succinct points from a local employment law/HR firm. We will provide more info as details become available.
The government provided more detail on April 1, 2020 about the federal wage subsidy being offered to employers in an effort to limit layoffs and keep Canadians employed during this COVID-19 pandemic.
On March 30, 2020, the Government of Canada announced that the federal wage subsidy (which was initially announced as a 10% wage subsidy for small businesses) was being increased to 75%, and that it will be available to all employers, regardless of size, that had suffered a 30% reduction in revenues due to COVID-19. Moreover, all non-publicly funded employers will be eligible to apply for the subsidy, including charities and non-profits.
In particular, the government stated that the subsidy would cover 75% of the first $58,700 of wages for each worker employed by an eligible business, which is up to $847 per week, backdated to March 15.
On April 1, 2020, the government provided further details on the wage subsidy, including that:
- To be eligible, employers must have experienced a 30% reduction in gross revenue compared to 2019, calculated by comparing revenues from each month with the same month in 2019 (e.g., a 30% decline in March 2020 as compared to March 2019);
- Employers will be required to reapply for the wage subsidy each month;
- Employers will be required to attest that they are “doing everything that they can” to provide their employees with the remaining 25% of their wages, to receive the subsidy;
- Employers will be able to apply online through a portal on the Canada Revenue Agency’s website that will be available “soon”;
- Funds under the subsidy will be available in mid-May; and
- There will be “severe consequences” for anyone who abuses this subsidy or uses the money for fraudulent purposes.
Here are the government press releases: