Canada will enhance its new temporary wage subsidy to provide additional support to more businesses.
The government has announced it will increase the temporary wage subsidy to 75% of annual employee salary, up to an annual salary of $58,700 (i.e., up to $847 per week per eligible employee). In addition, the government stated on March 30, 2020 that the subsidy would now be available for both large and small employers that have lost at least 30% of revenue due to COVID-19, regardless of the number of employees, and that these changes will be retroactive to March 15, 2020.
Previously, the government indicated that this temporary three-month taxable subsidy was only available on up to 10% of eligible employee salaries, was restricted to individuals, eligible small businesses, certain partnerships, registered charities and not-for-profits. At that time, the government stated that the subsidy would be available on remuneration paid from March 18 to June 19, 2020.
Finance is expected to release additional information shortly to describe the technical details of the revised measure. For more information, contact your KPMG adviser.
Information is current to March 30, 2020. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500.
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.