We know that like us you’ve been waiting for some details about Canada’s 75% wage subsidy.  Here is what we know so far.  Here is a video of Finance Minister Bill Morneau answering some questions – our breakdown is below.

What is it

A wage subsidy of up to 75% of pre-crisis wage for your employees up to $847 weekly.

Who Qualifies

Businesses who have seen a 30% drop in revenue month over month from the previous year and have people on payroll will qualify.  For example if your March 2020 revenue was 30% or more lower than your March 2019 revenue and you have employees on payroll your business will qualify.

What if I have contractor’s or pay myself a dividend?

People who do not have employment income (contractors, sole props or people being paid in dividends) can apply for the Canada Emergency Relief Benefit)

What if my business is new / seasonal or has special circumstances that make a month over month comparison difficult.

There will be details released shortly but exceptions and other criteria will be made available.

When can I expect funds?

It will take up to 6 weeks for money to start flow.

What should I be doing now?

• Make sure you have access to your CRA Business Account online.  If you are not set up for Direct Deposit – set up Direct Deposit.
• Apply for the Canada Emergency Business Account from your bank.  $40,000 interest free loan for one year.  Banks are reporting that these funds will be available in the next three weeks.  Here is what Vancity has posted (we assume most banks will be similar)
• You can use deferred Income tax or GST payments to help with short term cash flow until that money starts to flow.

We will continue to watch for more details and keep you posted and of course you can feel free to contact us.