As promised the Government of Canada announced details with respect to the Canada Emergency Wage Subsidy (CEWS) today.
A summary follows with details from the Government of Canada Website further down.
- The Federal Government will cover up to 75% of each employee’s salary on the first $58,700 that they earn this year, or up to $847 per week.
- The program is effective for a 12-week period, from March 15 to June 6, 2020.
- To be eligible, a business’ revenue has to have decreased by at least 30%.
- Eligible employers include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
- For non-profit organizations and registered charities similarly affected by a loss of revenue, the Federal Government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The Federal Government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
- An eligible employer’s entitlement to the CEWS will be based entirely on the salary or wages actually paid to employees, and employers will be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
- Applications for the subsidy will begin in about 6 weeks and via the My Business Account with CRA.
- Employers not eligible for the 75% wage subsidy may still be eligible for the 10% wage subsidy previously announced. Details on that program can be found by clicking the link below
Details about CEWS can be found here: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html