GBA LLP Blog

75% Wage Subsidy Extended Until August

Posted by Trevor Buttle on May 15, 2020 12:44:33 PM

Trudeau Corona VirusToday, Prime Minister Justin Trudeau said the 75 per cent federal wage subsidy program is being expanded by three months, to the end of August to assist employers as they look to reopen their businesses.

Companies that saw their revenues drop by 15 per cent in March or 30 per cent in April and May are eligible for the program — but Trudeau hinted changes could be coming to that threshold.


"As businesses start up again, this shouldn't become a barrier to growth."  He said this aspect of the program will be one explored during talks with business and labour stakeholders in the weeks ahead.

Finance Minister Bill Morneau is expected to provide more details on this in the near future.

The subsidy is on the first $58,700 of an employee’s salary, providing up to $847 a week per employee and. As it was initially implemented, the subsidy was set to be in place for 12 weeks, retroactive to March 15, for businesses and charities. It has now been extended by an additional 12 weeks to August 29.

 

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This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above.  Should you have a question about your specific situation, please discuss it with your GBA tax advisor.

GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of 20+, provides Audits, Reviews, and Notice to Reader financial statements, as well as corporate tax returns.  We also provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.

If you would like to schedule a call to discuss your accounting or tax needs with one of our team members, please complete the free no obligation meeting request on this page.

 

Topics: General Tax Information, Tax, COVID

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