Subsidy for Reducing Employee Costs
The Temporary Wage Subsidy is equal to 10% of an employer’s wage remunerations paid between March 18, 2020, and June 20, 2020. The subsidy is up to $1,375/employee to a maximum of 25,000/employer and applied for as a remittance deduction. Eligible employers are non-profit organizations, registered charities, or a Canadian-controlled private corporations (CCPCs) that have an existing CRA business number and payroll program account as of March 18, 2020; and pay salary, wages, bonuses, or other remuneration to an employee. Associated CCPCs can also apply for the maximum $25,000 subsidy. However, only CCPCs with “taxable capital employed” less than $15 million are eligible. The subsidy can be carried forward into the 2021 fiscal year. Please note that the subsidy is taxable.
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