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Small Business Wage Subsidy - COVID-19
 

The Government of Canada is rolling out the details of Wage Subsidy as a support to small businesses with employees.

The Subsidy will equal 10% of the paid wages beginning Mar 18th until June 20th 2020 with some provisions:

  • Up to a maximum of $1375 per employee

  • Up to a maximum of $25,000 per employer

  • This accounting is done by, and the responsibility of, the employer (not the Government)

  • This subsidy calculation is reduced from remittance of income taxes sent to CRA.

Wage Subsidy - How it Works

The above link shares the Global News article first announcing this subsidy.

“If you calculated a subsidy of $2,050, you would reduce your current remittance of federal, provincial or territorial income tax by $2,050,” the CRA said. “You could continue reducing future income tax remittances, up to the maximum of $25,000, for all remuneration paid before June 20, 2020.”