Industry News

How to Claim Your 75% Canadian Wage Subsidy

COVID-19 continues to impact business owners and employees.


To help businesses stay afloat during quarantine and to make it easier for Canadian companies to resume normal operations when the pandemic ends, the federal government has revealed that it will provide employers with a 75% wage subsidy, termed the Canada Emergency Wage Subsidy.


If your business is eligible, you can reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA).


What you need to know:


  • Companies of all sizes that have had a reduction in revenue of 30% will be eligible regardless of employee count

  • The subsidy will apply to 75% of the first $58,700 earned

  • Employers are encouraged to top up their employee’s wages with the remaining 25% of their salaries

  • Payments will be retroactive to March 15, 2020

  • The program will be in place for 12 weeks, from Mach 15 to June 6, 2020

What if my business doesn’t qualify?


Companies that don’t meet the requirements for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10% of remuneration from March 18 to June 20, 2020, up to a maximum of $1,375 per employee and $25,000 per employer.

Claiming Periods:


Period 1: March 15 – April 11 (reference period for eligibility will be March 2020 over March 2019)

Period 2: April 12 – May 9 (reference period for eligibility will be April 2020 over April 2019)

Period 3: May 10 – June 6 (reference period will be May 2020 over May 2019)


How to Apply:


To apply for this program, business owners will need to access their Canada Revenue Agency’s My Business Account and a web-based application. Employers need to keep documentation demonstrating their reduction in arm’s-length revenues and remuneration paid to employees.


More information on the application dates will be released shortly by the government; please stay tuned.


Please click here for more details on the Canada Emergency Wage Subsidy program.


Free Emergency Wage Subsidy Advice For Businesses:


We’re here to assist you during this difficult time. Please call us at 1-866-315-8822 between 9 am – 5 pm if you need any help at all.

Need help simplifying your payroll?

 

Request a quote to see how VPM can fit the needs of your business. Join now to receive one FREE month of payroll & a tablet*!

*some conditions apply

Contact Us

1-866-315-8822

info@vtacpayroll.ca

© 2020 V-TAC Payroll Management. All rights reserved. 

  • Grey Facebook Icon
  • Grey LinkedIn Icon
  • Grey Twitter Icon
  • White LinkedIn Icon
  • White Facebook Icon
  • White Twitter Icon