Government boosts wage subsidy to 75% for small, medium businesses to avoid layoffs during COVID-19 crisis

[New Person]

Prime Minister Justin Trudeau today announced more help for small and medium-sized businesses to keep employees on the payroll during the COVID-19 crisis, including a 75 per cent wage subsidy and guaranteed interest-free loans.

During a news conference outside his residence at Rideau Cottage in Ottawa, Trudeau called small and medium-sized businesses the "backbone" of the economy and said the new measures will help them avoid ordering layoffs or closing down because of the climate of uncertainty caused by the pandemic.

"We're thinking about that family-owned restaurant that's been around for years, [has] had many of the same employees for years. Employees who've been there through slowdowns, good times and bad times, and now in this moment of crisis they're having to lay these people off at their time of need," he said.

"We know that allowing people to continue that relationship, allow[ing] people to continue to feel and to know they have a job ... is a really important thing, not just for people's confidence, but for the ability of all us to bounce back strongly from this once we're through it."

The prime minister said the wage subsidies will be backdated to March 15, 2020.

 

[卖车]

这个有点疑惑， 如果领了政府的紧急援助，每个月2000元，公司已经不在支付员工工资了吧，那公司就不能获得这个援助，是不是？
所以这两项援助有重复的部分？

想知道，请明白的人说明。 不明白的人别瞎扯。

举个例子， 如果我是自雇的，我自己的公司给自己发工资，比如每个月4000， 那75% 就是能够得到补助3000. 这个比政府的2000要多。 这个选哪一个？

 

[9981]

政府的钱哪里有那么好领的， 但是现在那些做假工作经验骗移民的可能爽了

 

[RareEarth]

我理解2000是给下岗的， 75%是给在岗的。在岗下岗只能选一个

 

[ashvalley]

what about work share?

Work-Sharing Program - Overview - Canada.ca

The Work-Sharing Program helps employers and employees avoid layoffs when there is a temporary decrease in the normal level of business activity, and the decrease is beyond the control of the employer.

www.canada.ca

Work Sharing Information for Employees FAQs

Get answers to frequently asked questions (FAQs) about Work Sharing information for employees.

www.edd.ca.gov

 

[chess]

 

[stoneway]

 

[stoneway]

What is the government offering?
The federal government will offer a 75 per cent wage subsidy to all businesses that have lost 30 per cent of their revenue as a result of COVID-19 pandemic.

To qualify, companies will have to show that their revenue in March 2020 was 30 per cent less than it was in March 2019.

There may be some exceptions for start-ups and new firms.

A senior government official, speaking to reporters at a technical briefing on a not-for-attribution basis, said there may be some "flexibility" on the revenue comparisons to address the needs of companies that weren't around in March 2019.

The program will be in effect for three months and companies will have to reapply each month — demonstrating, for example, that revenues in April 2020 are also 30 per cent less than they were in the same month the year prior.

The 75 per cent wage subsidy will cover annual earnings up to $58,700 — or $1,129 a week in pre-crisis earnings. So the maximum subsidy for each employee would be $847 a week.

The program is retroactive to March 15.

 

[stoneway]

Which businesses will qualify?
The benefit is not limited to small and medium-sized enterprises; it will be offered to all companies that have seen that 30 per cent drop in gross revenue.

It also doesn't matter how many people are on staff. Sole proprietorships and partnerships are also eligible.

The subsidy is available to all types of corporations in Canada, with the exception of non-taxable corporations and public sector entities like municipalities, public schools and hospitals. Bars and restaurants can qualify.

The Canadian subsidiaries of foreign-controlled companies are eligible.

How do employers apply?
The wage subsidy will be administered by the Canada Revenue Agency (CRA) through the My Business Account portal on the agency's website.

Morneau said the money will start to flow to businesses within the next three to six weeks, depending on how quickly the government can make the necessary technical and bureaucratic adjustments to get the money out the door.

All businesses should register for direct deposit to ensure money can be sent electronically, the minister said, to avoid further delay.

A senior government official, speaking to reporters at a technical briefing on a not-for-attribution basis, said six weeks is the "worst case scenario."

Do not-for-profits and charities qualify?
Yes. Non-profits and charities are eligible for the same subsidy.

The government recognizes that these employers may find it harder than businesses do to demonstrate that their revenues have declined by 30 per cent year-over-year.

A government official said Ottawa will be working with the sector in the days ahead to find criteria that are consistent with the ones businesses have to follow. Charities may be asked to show that donations, for example, have dipped.

Beyond the wage subsidies, the government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19.

Will there be penalties for abusing the system?
Absolutely. The government has said it will be actively looking for instances of abuse — especially employers who pocket wage subsidies without passing them on to their employees.

"These are unprecedented times and will require us to pull together as a country and trust each other as Canadians. So there will be stiff and severe penalties for trying to take advantage of this system and of your fellow Canadians," Trudeau said.

A senior government official said Ottawa is "working on the details" to ensure compliance and prevent fraud.

The government is considering new criminal offences that will apply to individuals, employers or business administrators who provide false or misleading information to obtain access to this benefit, or who misuse funds obtained under the program.

The penalties may include fines or even imprisonment.

The government announced a 10 per cent wage subsidy earlier this month for small businesses. What happened to that?
That program is still in effect. Small businesses can continue to claim the 10 per cent benefit.

However, if they also qualify for the larger 75 per cent subsidy — the CEWS — then the money Ottawa sends will be adjusted downward to account for any payments made through that separate program.

Unlike the CEWS, small businesses can claim the 10 per cent subsidy even if they haven't seen a drop in revenue in recent weeks.

The maximum subsidy for that previously announced program is $1,375 per employee and $25,000 per employer.

How much will the CEWS cost the federal government?
The subsidy is expected to cost about $71 billion over the next three months.

Has there been any criticism of the wage subsidy?
The opposition parties in the House of Commons support direct wage subsidies to businesses.

Conservative Leader Andrew Scheer said Wednesday he is concerned that it could take up to six weeks to get subsidies to employers.

The Canadian Federation of Independent Business, the lobby group that represents small and medium-sized businesses, said it supports the CEWS but it has concerns about the 30 per cent revenue dip requirement.