Please find a summary of the latest Canada Emergency Wage Subsidy below and full details here.
1) The Canada Emergency Business Account will be available today April 9, 2020
a. Further updates will be made here:
2) For the month of March, 2020 businesses will need to prove a 15% drop in revenue and not as 30% previously announced
3) For the months of April and May 2020, the proven revenue drop will remain at 30%
4) There are 2 methods by which businesses can calculate the revenue drop
a. Compare to the same period as last year or
b. Compare to the average of Jan and Feb 2020 to March 2020, April 2020 and May 2020
5) Employers will be able to calculate the revenue on either an accrual or cash basis.
6) There will be a refund of EI and CPP premiums (more to come on this) it is unclear as to how this will be administered)
7) There are significant penalties in respect to this program at a high level:
a. Employers will need to designate an individual who is in control of this application process
b. If an honest mistake is made then the government will ask for repayment of the subsidy
c. If an entity tries to manipulate this program for their advantage where will be a 225% penalty and criminal charges up to a maximum of 5 years imprisonment.
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