Government Announces Wage Subsidy Application Date and Help for Charities

Today, the Federal Government provided more details on the Canadian Emergency Wage Subsidy and announced support for the charitable sector.

Wage Subsidy

New Details:

• Companies will be able to start applying for the program on Monday, April 27 at: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
• The government launched a calculator to help businesses determine eligibility: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html
• The government expects payments to companies to begin on May 5.

Background Details:

• Wage subsidy of 75% available on a maximum salary of $58,700 ($847 per week) for up to 12 weeks.
• Available to all Canadian businesses, not-for-profits and charities that see the required revenue reductions. Public bodies will not be eligible for this subsidy.
• Businesses will need to show a 15% revenue reduction in March and 30% reduction in April and May (compared to either 2019 figures or 2020 figures), or to an average of their revenue earned in January and February 2020. There would be no overall limit on the subsidy amount that an eligible employer may claim.
• Subsidy will be retroactive to March 15, 2020.
• Non-profits will be allowed to include or exclude government funding in their applications.
• Businesses may measure revenue on the basis of accrual accounting (as they are earned) or cash accounting (as they are received); once a method is chosen, they will have to stick to the chosen accounting method.
• Once an employer is found eligible for a specific period, they will automatically qualify for the next period of the program.
• The CEWS will provide an additional amount to compensate employers for their contributions to the Canada Pension Plan, Employment Insurance, Quebec Pension Plan and Quebec Parental Insurance Plan paid in respect of eligible employees who are on leave with pay due to COVID-19.
• The employer will be required to repay amounts paid under the CEWS if they do not meet the eligibility requirements.

Help for Charities‍

Prime Minister Trudeau announced the Emergency Community Support Fund, a $350 million support to community and non-profit organizations providing COVID-19 assistance. The money will be flowed through national organizations that have the ability to get funds quickly to local organizations. It will support the following activities:

• Increasing volunteer-based home deliveries of groceries and medications.
• Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointments.
• Scaling up help lines that provide information and support.
• Helping vulnerable Canadians access government benefits.
• Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response.
• Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet.

Federal Engagement

Consult the Sussex COVID-19 Guide for information on supports made available across the Federal, Provincial and Municipal Governments.

As the details of the programs announced today become available, let Sussex help connect you with the right people in government to help your organization get through these extraordinary times.

For more detail, please reach out to your Sussex representative directly or to the Federal Government Relations Team.