This article will be continuously updated with the latest information as we receive updates.
Canada's finance minister, Bill Morneau, recently made an announcement detailing the 75% Canada Emergency Wage Subsidy. Below we've highlighted quoted excerpts from the press conference and provided a summary point of view to each of the highlights. All quotes are from Bill Morneau.
"The proposed Canada Emergency Wage Subsidy [will] provide employers who see a 30%, or more, decline in gross revenues since this time last year with a wage subsidy. A wage subsidy of 75% for the first $58,700 of normal salary. Up to a maximum of $847/ week/ employee. The decline of 30% or more will be determined by comparing your revenues, if you're in a business, to the same month last year. For March, April, or May, and you will need to re-apply each month."
"You can apply online in a CRA portal that will launch soon. Funds will be available in approximately 6 weeks."
"This is available to Canadian businesses big and small, individuals, partnerships, corporations, that are not publicly funded. All Non-profits and charities."
"As an employer, you will need to attest that you are doing everything you can to pay an additional 25% of your workers' income. This may not be possible, and the system will be flexible."
"Let me be clear – there will be severe consequences for any bad actor that tries to abuse this system. If, in this time of crisis, anyone attempts to use this money for fraudulent purposes, they will face severe penalties. This is a high-trust system we are putting in place."
While this press conference did not answer all of our questions about this 75% wage subsidy, there are still concrete takeaways and actionable next steps.
It's also imperative to differentiate between the 10% Temporary Wage Subsidy & the 75% Emergency Wage Subsidy.
These are separate programs. Success in your application for the 75% Emergency Wage Subsidy would disqualify you from the 10% Temporary Wage Subsidy (you cannot double dip), but we're encouraging all eligible Humi clients to continue to self-select into the 10% Temporary Wage Subsidy until the time that they qualify for the 75% Emergency Wage Subsidy. You can read more about the 10% Temporary Wage Subsidy here.
If you are eligible for the subsidy and haven't already indicated your eligibility in Humi Payroll, go to Payroll - Settings and select "Yes" for the COVID-19 Wage Subsidy to indicate your eligibility. Humi is automatically calculating, applying, and crediting your maximum possible subsidy for each payroll run that you complete for the duration of the eligible period.
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