Government Details Wage Subsidy Program
Government Details Wage Subsidy Program
Earlier today, Canadian Finance Minister Bill Morneau and International Trade, Export Promotion and Small Business Minister Mary Ng unveiled new details for the federal wage subsidy for businesses.
Last week, Prime Minister Trudeau announced that the federal government would be increasing its wage subsidy from 10 percent to 75 percent for Canadian businesses. Initially, the government was planning to limit the wage subsidy for companies that were less than $15 million in taxable capital, which would have excluded most AED members.
AED lobbied in Ottawa as the association’s members sent hundreds of letters to their local MPs and the Minister of Finance, urging the government to find a different measurement to limit the wage subsidy. On Monday, the government announced businesses must only demonstrate that they have a 30 percent revenue decline, a victory for AED in its effort to ensure its members can benefit if needed.
“AED commends government for heeding our call to ensure that companies that need the wage subsidy to continue operations and maintain employment levels can utilize this important program,” AED’s President & CEO Brian P. McGuire said. “Thank you to AED members that personally contacted their elected officials. Extraordinary times call for collective action, and the equipment industry stepped up to the plate to make this effort a success.”
The program will cover the first $58,700 that Canadians earn, up to $847 per week and will be backdated to March 15, 2020. Businesses will have to apply each month through the Canada Revenue Agency. Employers will have to attest that they are doing everything they can to pay the remaining 25 percent of employees’ wages. The wage subsidy will establish a baseline based on 2019 earnings in a given month for March, April, and May of that year. The government is planning to deliver the first revenues within six weeks.
Stay tuned to AED for updates as the government releases further details about the Wage Subsidy Program.
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