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The Canada Emergency Wage Subsidy

Posted On April 05, 2020 @ 9: 00 am / Updated On August 12, 2020 @ 12: 42 am

By: Trisha Sarker

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 Financial
BMO
CIBC
Desjardins
RBC
Scotiabank
TD Bank

The Government also published the following FAQ about the temporary wage subsidy for employers: 

https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

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Trisha Sarker

As the executive director of FIC, Trisha provides strategic counsel for Fitness Industry Canada's corporate affairs and professional communications. She also produces articles for various publications, manages event coordination, and executes national campaigns. 

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