Canada has provided more details of the Canada emergency wage subsidy
Finance stated that employers will now only have to show that they have experienced a 15% reduction in revenue in March 2020 to claim the subsidy (instead of a 30% reduction), and indicated that employers can also choose to use an average of revenue for January 2020 and February 2020 to compare to their revenue for March, April and May 2020, instead of the equivalent month from 2019, among other changes. These changes were announced on April 8, 2020.
The government also noted that it will offer additional flexibility for the revenue loss calculation to registered charities and non-profit organizations. As well, the government announced that employers eligible for the Canada Emergency Wage Subsidy will be entitled to receive a 100% refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. The legislation to enact the Canada Emergency Wage Subsidy is not yet publicly available, but it is expected soon.
Download this edition of the TaxNewsFlash to learn more.
© 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.