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Canada: Legislation extends, expands wage subsidy (COVID-19)

Canada: Legislation extends, expands wage subsidy

Legislation enacted 27 July 2020 extends and expands the “emergency response” wage subsidy—a program available to qualifying employers that have lost revenue due to the coronavirus (COVID-19) pandemic.


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Canada’s emergency wage subsidy generally provides an amount to employers equal to 75% of employees' remuneration paid, up to a maximum of $847* per week per employee.

The legislation:

  • Extends the subsidy to 21 November 2020 (although the government has stated that the subsidy will continue until 19 December 2020)
  • Changes the subsidy to expand the eligibility to employers that did not meet the previous 30% revenue threshold and modifies the calculation so that the subsidy now consists of a “base” and “top-up” amount
  • Includes new continuity rules for employers that have recently purchased assets of a business

KPMG observation

Now that the new rules have been enacted, employers can complete their subsidy claims in accordance with these changes. In particular, eligible amalgamated corporations and employers with paymaster arrangements, among others, will be able to submit subsidy claims. Previously, the Canada Revenue Agency (CRA) indicated it would not administer these changes until they were passed into legislation.

Read a July 2020 report [PDF 182 KB] prepared by the KPMG member firm in Canada

* $ = Canadian dollar

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