1. Canada Emergency Wage Subsidy program (75% subsidy)
This wage subsidy must be applied for, and you will need to demonstrate that your company’s sales dropped
by at least 30% in the same month in the prior year. The funds will be equal to 75% of remuneration paid
between March 15 and June 6, 2020 and is up to the maximum benefit of $847 per week per employee.
How to apply:
- Create a CRA My Business Account here: https://www.canada.ca/en/revenue-agency/news/cra-multimedia-library/businesses-video-gallery/register-mybusiness-account.html. Note that you will need your
Social Insurance Number, Date of Birth, and 2018 tax return
- Sign up for direct deposit once you have created your My Business Account to receive funds faster
- Provide sales records depending on when you apply:
Period 1 March 15 – April 11 March 2019 and March 2020
Period 2 April 12 – May 9 April 2019 and April 2020
Period 3 May 10 – June 6 May 2019 and May 2020
- Note that sales would exclude any non-arm’s length transactions as well as capital transactions (i.e.only trade sales).
- You will receive the funds 4 – 6 weeks after application. Note that you will need to apply each period (Period 1, 2, and 3) to receive funds each month.
2. Temporary Wage Subsidy program (10% subsidy)
If you don’t qualify for the 75% subsidy, you may qualify for the 10% subsidy. The subsidy is equal to 10% of
remuneration paid from March 18, 2020 to June 19, 2020, up to a maximum of $1,375 per employee and
$25,000 per employer. You may deduct the subsidy from your monthly payroll deductions (only the income
tax portion but NOT the CPP and EI portion).
For example, if you employed 3 workers at $1,500 per month for March, the subsidy you can apply for is
$1,500 x 3 = $4,500 x 10% = $450, which can be deducted from your payroll remittance for the month of
3. Canada Emergency Business Account - $40,000 Loan
This is a $40,000 government guaranteed loan to help eligible businesses pay for operating expenses such as payroll and rent.
- The loan will be funded as a revolving line of credit for $40,000 until December 31, 2020. After this date, any outstanding balance will be converted into a non-revolving 5-year term loan
- December 31, 2025 at which time the balance must be paid.
- No interest is applied until January 1, 2023. After this date, interest is accrued at 5% per year
- If you pay 75% of the balance of the term loan at January 1, 2020 on or before December 31, 2022, the remaining balance of the loan will be forgiven.
- Contact your bank advisor to apply for the loan. You must have paid payroll of between $50,000 to $1,000,000 in 2019 to qualify and will need your 2019 T4 Summary of Remuneration Paid to