Payroll Remittance Relief: Federal Wage Subsidy Now Available

The Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions they’re required to remit to the CRA. It was introduced as part of the government’s pandemic support for businesses. It is already in effect, and we’re sharing the details on how this works.

Here’s what businesses need to know in order to start taking advantage of the Temporary Wage Subsidy immediately.

How much is the subsidy? The subsidy is equal to 10% of the remuneration you pay between March 18, 2020, and June 20, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer. Associated CCPCs will not be required to share the maximum subsidy of $25,000 per employer.

How do businesses receive the subsidy? The subsidy is calculated manually. Businesses will not receive it from the government. Rather, they simply reduce their remittances by the calculated amount.

What if the subsidies exceed the remittances? If the income taxes you deduct are not sufficient to offset the value of the subsidy in a specific period, you can reduce future remittances to benefit from the subsidy. This includes reducing remittances that may fall outside of the application period for the wage subsidy (after June 20, 2020).

Which employers are eligible? Non-profit organizations, registered charities, or Canadian-controlled Private Corporations (CCPCs). You must have an existing business number and payroll program account with the CRA on March 18, 2020 and pay salary, wages, bonuses, or other remuneration to an employee.

Note: CCPCs are only eligible for the subsidy if their taxable capital employed in Canada for the preceding taxation year, calculated on an associated group basis, is less than $15 million.

Additional educational resources : Have some downtime to study online? Become an MFA™-Business Services Specialist today, and provide small businesses the help and guidance they require during the pandemic.

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