COVID-19 What you need to do if you are eligible for the Temporary Wage Subsidy for Employers

COVID-19 What you need to do if you are eligible for the Temporary Wage Subsidy for Employers

The federal government has announced the Temporary Wage Subsidy for Employers to help Canadian businesses keep employees and to recall those who were laid off. The subsidy is equal to 10% of the remuneration you pay from March 18, 2020 to June 20, 2020, up to $1,375 per employee. The maximum total amount per employer is $25,000.

If your business qualifies, we will automatically calculate the amount of the subsidy your business is entitled to and reduce your source deductions remittance to the CRA by that amount. Your pay run invoices will be reduced by the subsidy amount until you have reached the maximum amount your business is entitled to. No paperwork and no applications are needed. 

For more information regarding the 
Canada Emergency Wage Subsidy program, visit the CRA.

Please note that the federal government will be announcing details of a 75% wage subsidy program on April 1. This is a separate program from the 10% wage subsidy described in this article. Rise will be providing more details on the upcoming 75% wage subsidy shortly.
To enrol your organization in this program, follow the steps below:

1. You need to determine whether your business qualifies for the subsidy. You are an eligible employer if you:

  • are a non-profit organization, registered charity, or a Canadian-controlled private corporation (CCPC);

  • have an existing business number and payroll program account with the CRA on March 18, 2020; and

  • pay salary, wages, bonuses, or other remuneration to an employee.

CCPCs are only eligible for the subsidy if their taxable capital employed in Canada for the preceding taxation year, calculated on an associated group basis, is less than $15 million.
The Temporary Wage Subsidy for Employers is limited to the eligible employers listed above. 

2. Login and click on your Organization Name, and then click View organization settings.

3. Click the checkbox if you are eligible for the Temporary Wage Subsidy.

By selecting this checkbox, you are declaring that your business qualifies for the subsidy and your credit amount will be calculated automatically. Rise People has no ability to assess or confirm that a business qualifies for the subsidy.
Before selecting the Temporary Wage Subsidy on the Rise platform please ensure your business CRA payroll remittances are processed through Rise.
Rise will calculate the maximum eligible subsidy and subtract any remittance adjustments already made to calculate the remaining eligible subsidy. This means that any pay runs already processed from March 18th onward will be included in the calculation for the next pay run.
Adhoc Pay Runs is excluded from the 10% Wage Subsidy calculation. The Adhoc Gross Earnings will be added to your next regular pay run Gross Earnings and the 10% Wage Subsidy will calculate on the combined Gross Earnings.
If you determined that you are ineligible and need to unenrol your organization, simply uncheck the checkbox and the remittance adjustment calculations will stop.

4. To help you keep track of the total amount of the adjustment, your invoice report will show a line item under the Remittances section.  If your organization has more than one business number, each business number will have a subsidy calculated separately, with their own maximums.

5. You can also review the Federal Remittances Report to show the adjustments applied per pay run. This report can be found under the Custom Reports section in Payroll Reports.

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