Extension of Emergency Wage Subsidy through 2020
The Canada Emergency Wage Subsidy was one of a suite of measures the Canadian government implemented to assist and support Canadian businesses that had been impacted by the COVID-19 pandemic. The aim of the wage subsidy was to enable businesses to rehire workers previously laid off as a result of COVID19, help prevent further job losses and better position companies to resume normal operations. In May the program was extended to August 29th. Yesterday the federal government announced that it will be extending the emergency wage subsidy program to December 2020. The aim of the program is to provide greater certainty and support to businesses as the economy is restarted.
The program covers 75% of wages, up to a weekly maximum of $847 for workers at eligible companies and non-profits that have been affected by the economic slowdown caused by the COVID-19 pandemic. To be eligible for the subsidy, the employer must have experienced a reduction in revenue during the time period during which the subsidy is claimed of 30% and have a CRA payroll account as of March 15, 2020. Eligibility requirements remain the same with the extension of the program.
This update was authored by Rose Keith, QC. Looking for more information on this or similar topics? Contact Rose at rkeith@harpergrey.com or anyone else listed on the authors page.