Canada has enacted the Canada Emergency Wage Subsidy to help businesses retain employees during COVID-19.
Canada has enacted the Canada Emergency Wage Subsidy to help businesses retain employees during COVID-19. This temporary subsidy, which is available to qualifying employers that have lost revenue due to COVID-19, generally 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. The legislation for the subsidy, which was passed into law on April 11, 2020, confirms many details of the program that were already known, and provides additional guidance on how employers can qualify for the subsidy. In particular, the new rules clarify the calculation of a decrease in revenue, including for amounts derived from non-arm's length persons or partnerships, and outline how employers must attest to their eligibility. The rules also provide details on how employers that qualify for the Canada Emergency Wage Subsidy may also receive a 100% refund for certain employer-paid contributions.
Download this edition of the TaxNewsFlash to learn more.
© 2020 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.