GBA LLP Blog

75% Wage Subsidy Extended Until August

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

Today, 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.

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Topics: General Tax Information, Tax, COVID

Planning Opportunities for the 75% Wage Subsidy

Posted by Trevor Buttle on May 2, 2020 1:30:14 PM

Today, I was talking with one of our clients about whether they qualify for the 75% wage subsidy. 

Sadly, they have been closed since the beginning of the COVID crisis, but now with the governments willing to slowly start opening some businesses, they are looking to bring back their employees and slowly start working again.

They did not think they qualified, as when they were closed they had no employees, and now that they are opening in May, they don't expect a full 30% drop in revenue year over year.

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Topics: Tax, COVID

Commercial Rent Assistance

Posted by Trevor Buttle on Apr 27, 2020 4:27:07 PM

The Canadian Government reached an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This program will lower rent by 75 per cent for small businesses that have been affected by COVID-19.

The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.

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Topics: General, COVID

Prepare to Apply for the 75% Wage Subsidy

Posted by Trevor Buttle on Apr 27, 2020 4:08:43 PM

Ready, Set, Go!

Today, April 27th, 2020, certain employers will be able to apply to receive the 75% Canada Emergency Wage Subsidy (CEWS). 

This temporary subsidy, which is available to qualifying employers who have lost revenue during the COVID-19 crisis, provides an amount to employers equal to 75% of employees' remuneration paid, up to a maximum of $847 per week per employee from March 15, 2020 to June 6, 2020.

CRA notes that employees who have been laid off or furloughed, must be rehired and paid before they can be included in the subsidy calculation.

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Topics: General, COVID

75% Wage Subsidy Updates

Posted by Trevor Buttle on Apr 19, 2020 1:16:51 PM

75% Wage Subsidy (CEWS)

Updated April 19, 2020

The Canada Emergency Wage Subsidy (CEWS - the 75% Wage Subsidy) was passed into law on April 11, 2020.  This law amends the Income Tax Act to introduce an emergency wage subsidy as part of the COVID-19 response, specifically it details the 75% wage subsidy and how it can help businesses during this unprecedented time.

It is a complex law.  Bill C-14 encompasses about 11 pages, and about 5 of them are definitions of terms that have not been used in the Income Tax Act before, or they are very specific to this provision.  You should consult your tax professional if your situation is not straight forward.

Previously, it was indicated that the government wanted to provide an enhanced Wage Subsidy (75%) to help employers keep workers on the payroll.  Here are some of the details that were initially released with the recent changes.

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Topics: General, Tax, COVID

April 16th Changes to CEBA and Commercial Rent Relief (CECRA)

Posted by Trevor Buttle on Apr 18, 2020 2:20:20 PM

Canada Emergency Business Account

On April 16th, the Prime Minister, Justin Trudeau, announced an expansion to the Canada Emergency Bank Account (CEBA).

Now businesses that had payroll in 2019, as evidenced by their T4 Summary remittance, of between $20,000 and $1,500,000, are eligible for the $40,000 loan program at 0% interest.  This new range replaces the prior range of $50,000 to $1,000,000.

Since the launch of CEBA, more than 195,000 loans have been approved by financial institutions, which represents approximately $7.5 billion in credit made available to small and medium sized businesses.

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Topics: General, COVID

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