10% Temporary Wage Subsidy

While we await further information from the federal government on the 75% Emergency Wage Subsidy, the 10% Temporary Wage Subsidy is active, and will continue to be available to those who may not meet the 30% revenue decrease required to received the 75%. Here is everything you need to know:

Benefit

  • 10% of remuneration paid due to employees from March 18th to June 19th
  • Maximums of $25,000 per employer or $1,375 per employee
  • These amounts can be changed and set by regulations to be released
  • No application required, employers should receive this benefit by reducing the amounts of provincial and federal taxes withheld on payroll
  • These amounts will be taxable to businesses and should be tracked

Eligibility ( 3 criteria)

  • Employ one or more individuals in Canada
  • Was registered for payroll remittance on March 18th, 2020
  • Is one of the following:
    • CCPCs eligible for the small business deduction
      • Any business limit availability greater than nil for its most recent tax year ended prior to March 18th, 2020
      • Reductions to the business limit cause by adjusted aggregate investment income are not considered
  • Individuals other than trusts (sole proprietorships)
  • Partnerships where all members are entities described above, or a non-profit
  • Non-profit organisations
  • Registered charities

For more information see the CRA FAQ landing page: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html