FIC's lobbyist's presented the following webinar: click here to view
Finance Minister Bill Morneau presented the following information last week on the Canadian Emergency Wage Subsidy on April 1, 2020.
- Threshold will remain at 30% reduction in business from the same period as last year. Up to $847/week up to $58k of wages.
- Compare reduction to period of March/April/May of 2019.
- Need to apply each month.
- Applies to businesses of all sizes. Includes non-profits and charities.
- Employers will have to try their best to make up the remaining 25%.
- Money should be ready to roll out in six (6) weeks.You will need to apply at the CRA portal that will be launched soon.
- Fraud will not be tolerated and punished.
- The wage subsidy assistance will cost the government approximately $71B.The full document on the wage subsidy program can be accessed here.
TOP FITNESS INDUSTRY QUESTIONS
1. How long is the 75% wage subsidy committed to lasting?
Until June 6 (so far). This would provide a 75 percent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.2. Can people added to payroll be included?
Yes. Employers will also be eligible for a subsidy of up to 75 percent of salaries and wages paid to new employees.3. What are the terms for the $40k loan?
Banks will provide interest-free loans (for the first year) of up to $40,000 to employers with $50,000 to $1 million in total payroll in 2019.
Repaying the balance of the loan on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000).
Small businesses and not-for-profits should contact their financial institution to apply for these loans. Linked below are the details for the main financial institutions: ATB FinancialBMOCIBCDesjardinsRBCScotiabankTD Bank
The Government also published the following FAQ about the temporary wage subsidy for employers: