How you can qualify for the 75% government wage subsidy in Canada for COVID-19
The wage subsidy program in Canada for COVID-19 pledges to cover 75 per cent of wages for certain businesses, and on Monday, Prime Minister Justin Trudeau outlined the exact qualifications a company needs to be eligible for the plan.
Speaking outside of Rideau Cottage, Trudeau said that the federal wage subsidy will be available to any business whose revenues have decreased by 30 per cent due to the pandemic.
"The number of employees you have will not determine whether or not you get this support," Trudeau said. "It will apply to non-profit organizations and charities, as well as both companies both big and small."
The next step in our COVID-19 Economic Response Plan will help Canadian businesses protect jobs and pay their bills. We have your back. https://t.co/IQDA8tEjXW pic.twitter.com/cY8QUfXI9q— Bill Morneau (@Bill_Morneau) March 27, 2020
Trudeau said that the government will cover 75 per cent of salaries, up to $847 per week. The subsidy will be backdated to March 15.
"This subsidy will make a real difference in your lives and help everyone affected bridge to better times," he said, adding that the eligibility criteria is in line with "best practices" that the government has observed in other countries.
Canadian Emergency Wage Subsidy:— Kevin Milligan (@kevinmilligan) March 30, 2020
* 30% revenue drop to qualify.
* 75% subsidy up to $58,700 in annual earnings (the YMPE), or $1129/weekly covered. 75% of that is $847 subsidy.
* no cap on biz size. Big and small companies eligible.
* nonprofits, corps, partnerships all eligible
Trudeau also warned businesses not to take advantage of the system, adding that there will be "serious consequences" for those that do so.
He urged Canadian businesses that have the means to pay their workers the additional 25 per cent of their wages to do so.
Small businesses may also be eligible for the Canada Emergency Business Account, which will provide up to $40,000 in government-backed loans.
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