Some good news to start your Friday. We have been able to obtain a few more details around the Canada Emergency Wage Subsidy and they provide some clarity to the situation.
Here is the update:
The 75% wage subsidy is available if you meet the Revenue Test. The Revenue Test, is a test where your Revenue for March 2020 must be at least 30% lower than your Revenue for March 2019. The Revenue test is a month to month test that a business must review. A business will have to review April and May to determine if it is eligible.
The first claim period for the program is set for March 15, 2020 to April 11, 2020.
The significant piece of information that provides clarity to the program is around business owners and their wages/salaries. Under the program, if you as a business owner, have been receiving a salary or wages prior to March 15th, then your salary and wages are eligible for the program. If you were receiving dividends prior to March 15th, you do not qualify under the program.
This is some good news for many small business owners who work in their business. You can actually receive 75% of your wages up to a wage cap of $58,700 as well as for your employees.
If, like many businesses, you have had to lay employees off, you can re-hire those employees and their wages would be eligible for the 75% wage subsidy.
Based on what we have heard, the registration for the program is still a few weeks away, however, application will be made via CRA My Business Account. If you do not have a CRA My Business Account, you should register for one immediately as it can take 7 to 10 business days to activate the account.
We also know now that this Wage Subsidy will be taxable to the business. More on that in due time.
We will keep posting updates via our blog and follow our social media. As always, you should be talking with your Professional Service provider about this program. If you are looking for more information, feel free to reach out to an ANR team member.
Until next time,