Canada Emergency Wage Subsidy (for small & large businesses, nonprofits & charities)
Until June, 2021, eligible businesses as well as nonprofits and charities can apply to receive a wage subsidy for specific 4-week “claim periods.” The number of employees businesses have is irrelevant — this subsidy is to help both large and small businesses. Funding does not automatically renew. Business owners must reapply for each claim period after the period is over.
The Prime Minister also encourages subsidized businesses to use funds to hire back employees that have been laid off due to the pandemic.
For claim periods 1-4 (March-June, 2020)
Employees of subsidized businesses can expect to have 75% of their incomes covered up to a maximum of $58,700 (up to $847/week). Business revenues must have decreased by at least 30% as a result of coronavirus. Business owners can use sales figures from January and February (2020) to demonstrate their losses. Additionally, they only need to show a 15% drop in revenue during March, given that most businesses didn’t feel the effects of COVID-19 until half-way through the month.
For claim periods 5 and onwards (July, 2020 – present)
For claim periods 5 and onwards (July, 2020 – present), employees of subsidized businesses can expect to receive a base rate percentage that varies depending on how much revenues have dropped. If your business has lost more than 50% of revenues, an additional top-up rate will also apply. The maximum rate a business can receive as of claim periods 8-10 (October–December, 2020) is 65%. Check the Government of Canada website to get the latest information for the current claim period.