Posted on 01-Apr-2020

KLCA CHARTERED PROFESSIONAL ACCOUNTANTS

BUSINESS WAGE SUBSIDIES
The Canada Emergency Wage Subsidy is a federal benefit designed to help businesses cover up to 75% of wages and keep their employees on payroll.

The program includes organizations from bars and restaurants to charities, small businesses and large corporations.

Employees receiving the benefit, which requires employers to cover at least 25% of a worker’s wage, cannot apply for other unemployment benefits.

The benefit will pay 75% of the first $58,700 normally earned by employees, up to $847 per week. The subsidy is expected to last for three months — retroactive from March 15 to June 6.

Employers who can show their revenues have fallen by at least 30% in March, April or May compared to the same month last year will be eligible.

Employers can apply for the benefit through the Canada Revenue Agency’s My Business Account portal.

BUSINESS LOANS
Ottawa has also launched the Canada Emergency Business Account, which mandates government-guaranteed bank loans of up to $40,000 for small businesses. The loans will be interest-free for the first year and up to $10,000 can be waived for repayment.
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