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.
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.
Note: 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.
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, Payroll Reports section.