What You Need to Know About Canada's Wage Subsidy Programs

Push Operations
December 10, 2020

Disclaimer: This is guide is provided by Push Technologies Inc. (“Push Operations”) for information purposes only. This is not an official or legal document and should not be taken as legal advice. Push Operations does not guarantee or warrant the accuracy or completeness of the information provided. For the most accurate and up-to-date information, please check with the proper governing authority.

First of all: What's the difference between the 10% Wage Subsidy and the 75% Subsidy?

  • The eligibility for the 10% and the 75% subsidy differ. Small businesses can claim the 10% subsidy even if they do not report a drop in revenue.
  • For the time being, you can partake in the 10% subsidy, and when the application opens for the 75% subsidy, the benefit amount from the 10 percent wage subsidy for remuneration paid in a specific period will reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period.
  • Small businesses can apply for both the Canada Emergency Wage Subsidy (75%) and the 10% wage subsidy, however, if you are eligible and apply for the Canada Emergency Wage Subsidy benefit, the amount will be adjusted downward to account for any payments made through the 10% subsidy program.
  • Push Operations will be enacting the 10% on eligible businesses that have filled out our 10% Wage Subsidy form here: Push Operations | COVID-19 Temporary Wage Subsidy Confirmation Form
  • For additional details on how the 10% subsidy will function in Push, click here.

Canada’s COVID-19 Economic Response Plan: 10% Wage Subsidiary

In response to the effects of COVID-19 on small businesses, the Government of Canada 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 the remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

Who is Eligible:

1. Employers benefiting from this measure will include corporations eligible for the small business deductions, as well as non-profit organizations and charities.

  • you are a non-profit organization, registered charity, or a Canadian-controlled private corporation (CCPC);
  • you have an existing business number and payroll program account with the CRA on March 18, 2020; and
  • you pay salary, wages, bonuses, or other remuneration to an employee.

2. Eligible businesses that pay remuneration to an employee, such as salary, wages, or taxable benefits, on or after March 18th and before June 20th, are permitted to reduce their remittances of federal, provincial, or territorial income tax by 10% of the remuneration paid. This measure is only applicable to remittances made to the CRA.

3. The wage subsidy is applicable per business number and it will only apply to businesses that are not closed or have paid salary, wages, bonuses or other remuneration to an employee between March 18 and June 20, 2020.

4. With that being said, you can still get the subsidy if you are paying payroll at the business you've closed. CRA doesn't look at whether or not you are open, they will base it on if you paid anyone during this time.

What to Expect:

  • Our team is currently working in-acting this in the most effective way.
  • In the meantime, if Push remits your taxes and your business is eligible and would like to take part in the wage subsidy program, please fill out this form: Push Operations | COVID-19 Temporary Wage Subsidy Confirmation Form
  • This feature has not been released yet. Once it is live, if you have approved payrun(s) on March 18th payday and onwards and we have already collected the 10%, we will retroactively reduce your remittance amount. You can expect a refund equal to the wage subsidy provided by the government shortly after we have released the update.
  • Push will continue to calculate taxes normally and employees will pay taxes normally however when Push remits to the government on your behalf, the amount we remit will be [remittance amount] - [10% of gross employees wages]. Employers can keep 10% of wages per employee, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
  • Our team will be in contact with the individual who has filled out the form.

Canada's Emergency Wage Subsidy (CEWS): Here's What You Need to Know About 75% Wage Subsidy

In an effort to keep our clients as informed as possible, we have gathered a few preparation tips for you as we anticipate further details from the government before the application portal opens. Please note: Push Operations will not be handling this subsidy.To help you take action quickly when the portal is live, here are some tips that can help you streamline the requirement process:

What is Canada's Emergency Wage Subsidy (CEWRB)?

In response to the effects of COVID-19 on small businesses, the Government of Canada is proposing The Canada Emergency Wage Subsidy for businesses with a decrease of at least 30% revenue. This will provide a 75 percent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.

Who is Eligible?

  • This subsidy will be available to eligible employers that see a drop of at least 30 percent of their revenue (see Eligible Periods).
  • Employers will be required to attest to the decline in revenue.
  • An employer's revenue for this purpose will be its revenue from its business carried on in Canada earned from arm’s-length sources.
  • Revenue will be calculated using the employer’s normal accounting method and will exclude revenues from extraordinary items and amounts on account of capital.

Eligible Periods

  • Period 1: March 15 – April 11; March 2020 over March 2019
  • Period 2: April 12 – May 9; April 2020 over April 2019
  • Period 3: May 10 – June 6; May 2020 over May 2019

How Can I Prepare?

  • Collect your sales percentages (from POS or our integration) from last year to ensure it’s down by the appropriate percentage (at least 30%), in case the government requires supporting documents and info through the portal.
  • You may be asked for records that demonstrate your reduction in arm’s-length revenues and remuneration paid to employees. More details about the application process will be made available shortly.

How to Apply:

  • Eligible employers will be able to apply for the Canada Emergency Wage Subsidy through the Canada Revenue Agency’s My Business Account portal.
  • To speed up your application and payment process, make sure your direct deposit is set up on your CRA account.
  • For details on how to sign up for direct deposit on CRA as a business, click here.
Please Note: Push Operations will not be handling the 75% Emergency Wage Subsidy, but we will be able to calculate the 10% Temporary Wage subsidy. To confirm that you want to proceed with the 10% subsidy in your existing Push account, please email contact@pushoperations.com. Push will not be handling any eligibility requirements and will not provide reconciliation services between the 10% and 75% subsidies.

Here is some additional information, links and resources that you may find helpful: