Read on Twitter
Canada Emergency Wage Subsidy - A Thread:
Who? The temporary wage subsidy is available to employers of all sizes and across all sectors of the economy, including non profit organizations and registered charities. However, public sector entities are excluded.
1/n #EmploymentLaw
Who? The temporary wage subsidy is available to employers of all sizes and across all sectors of the economy, including non profit organizations and registered charities. However, public sector entities are excluded.
1/n #EmploymentLaw
Who Cont’d - The ER has to show the company’s sales have decreased by at least 30% on a monthly basis when compared with the same month in the prior year (eg, if the wage subsidy is for April 2020, then the sales for April 2020 have to be at least 30% less than April 2019) 2/n
Who Cont’d - Organizations that do not qualify for this wage subsidy may qualify for the previously announced wage subsidy of 10% of remuneration paid from March 18 to before June 20, 2020. 3/n
What?
The temporary wage subsidy will provide up to 75% of gross regular wages to a maximum of $847/week or $58,700 annually.
4/n
The temporary wage subsidy will provide up to 75% of gross regular wages to a maximum of $847/week or $58,700 annually.
4/n
When?
The temporary wage subsidy will apply for three months: March, April and May 2020.
ERs will have to reapply each month for the subsidy.
Funds will be available to be paid to the ER in approximately 6 weeks from April 1, 2020 (around the middle of May 2020).
5/n
The temporary wage subsidy will apply for three months: March, April and May 2020.
ERs will have to reapply each month for the subsidy.
Funds will be available to be paid to the ER in approximately 6 weeks from April 1, 2020 (around the middle of May 2020).
5/n
Where?
The temporary wage subsidy is a federal measure and applies across Canada.
Why?
This program is designed to assist ERs who have been hit the hardest hit by the COVID-19 pandemic in avoiding layoffs and retaining workers.
6/n
The temporary wage subsidy is a federal measure and applies across Canada.
Why?
This program is designed to assist ERs who have been hit the hardest hit by the COVID-19 pandemic in avoiding layoffs and retaining workers.
6/n
Why Cont’d - prevent further job losses, encourage ERs to re-hire workers previously laid off as a result of #COVID19, and help better position ERs to more easily resume normal operations following the crisis.
7/n
7/n
Why Cont’d - While the Government @JustinTrudeau has designed the proposed wage subsidy to provide support to ERs, the expectation is that ERs “will do their part by using the subsidy in a manner that supports the health and well-being of their employees.” 8/n
How? Apply online through the CRA portal which will be available soon.
More details to come soon.
9/n
More details to come soon.
9/n
There have been indications that 1) anyone who abuses the system would face severe penalties, but it remains unclear what the penalties would be, and 2) ERs must show they are doing everything they can to pay the remaining 25%, but how this would be applied remains unclear. 10/n
Interaction with the Canada Emergency Response Benefit #CERB - An ER would not be eligible to claim the Canada Emergency Wage Subsidy for $ paid to an EE in a week that falls within a 4-week period for which the EE is eligible for the CERB.
11/n
11/n
Interaction with the CERB Cont’d - ERs who are not eligible for the Canada Emergency Wage Subsidy would still be able to furlough EEs who will receive the CERB of up to $2k/month. 12/n
Interaction with the CERB Cont’d - It appears that at any given time, for any specific EE, either the CERB or the Canada Emergency Wage Subsidy may be applicable, but not both. 13/n
DISCLAIMER: The info in this thread is current as of April 1, 2020 and there will be further info in the coming days. If you find anything is incorrect, pls LMK. 14/14 #EmpLaw #HR #Canada #COVID19Pandemic #CoronaVirusCanada #WageSubsidy #Emergency #ON
