The Canadian Government Covid-19 Incentives - 75% Wage Subsidy

The 75% Wage Subsidy The 75% Wage Subsidy details were announced today by Finance Minister Bill Morneau.  Unfortunately this program is at least 3 to 6 weeks from being operational from today's date.

The previously announced 10% wage subsidy (which is still available) was actually a discount that eligible employers could take on payroll taxes due to the Canada Revenue Agency (CRA).  This new 75% wage subsidy is actually monies that the CRA will pay to eligible employers. The 75% wage subsidy has the following details:

Open to businesses of any size;

Previous Eligibility Requirements:

Businesses must have lost at least 30% of its gross revenues in comparison to the same month of the prior year (e.g. March 2020 vs. March 2019).

Updated Eligibility Requirements:

Businesses now have the option to use January 2020 and February 2020 as reference points to show a 30% loss of gross revenues in comparison to March 2020; and

Businesses only need to show a loss of 15% of its gross revenues when comparing the past gross revenues to March 2020; since the impact of Covid-19 was felt by businesses from mid-March 2020.

Evidence that employee’s have been paid must be available;

Must be applied for on a monthly basis (for each month the subsidy is being requested); and

The subsidy will apply to the first $58,700 of each employee’s salary and provide up to a maximum of $847 per week.

The full administrative details will follow within the next couple of days.