Canada's wage subsidy program -there is a lot to know.
First of all, many are wondering: what's the difference between the 10% wage subsidy and the 75% subsidy?
It's a confusing time for everyone as we try and figure out the difference between the different subsidy programs. Here, we created a helpful guide to clear some things up. And the difference is:
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 will be enacting the 10% on eligible businesses that have filled out our 10% Wage Subsidy form here: Push | COVID-19 Temporary Wage Subsidy Confirmation Form
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.
Here are the 4 types of qualifying Canadians:
1. Employers benefiting from this measure will include corporations eligible for the small business deductions, as well as non-profit organizations and charities.
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.
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:
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.
Please Note: Push 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 email@example.com. Push will not be handling any eligibility requirements and will not provide reconciliation services between the 10% and 75% subsidies.
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.
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