Last week (March 27), federal Minister of Finance Bill Morneau announced the Canada Emergency Wage Subsidy. HRAI members who can show a 30% or greater decline in revenue from this time last year will be eligible for a wage subsidy up to 75%. This will cover the first $58,700 of an employee’s salary, up to $847 per week per employee for 12 weeks and will be retroactive to March 15th, 2020.
The wage subsidy will be available to HRAI members of all sizes, but they will need to re-apply each month, based on their revenue statistics. Employers will need to attest that they are doing all they can to pay the remaining 25%.
Yesterday (April 1) the government announced the subsidy won’t be available until three to six weeks from now. Eligible employers will be able to apply for the Canada Emergency Wage Subsidy through Canada Revenue Agency’s My Business Account portal, as well as via a web-based application. Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees. More details about the application process will be made available shortly.
Employers who are not eligible for the Canada Emergency Wage Subsidy would still be able to furlough employees who will receive up to $2,000 a month under the Canadian Emergency Response Benefit program.
HRAI will share information on how to access the CEWS as soon as it becomes available.
For more information on the program, please visit: https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html