New Wage Subsidy Program Calculations Released

NEW WAGE SUBSIDY RATES

For the current worker period (called Claim Period 5) for employees who work July 5-Aug 1 or parts of that time, employers will have two options on how to calculate their worker’s subsidy – first, using the original formula of 75% wage subsidy for revenue declines at/ over 30% for the last few months. That formula will be fading out over the next few pay period, and will be replaced by the new formula. That formula provides a base rate (60%) wage subsidy for any organization with a decline of 50% or more over the last three months, and a scaled support of wage subsidy based on your organizations decline in revenues (see information below). The Government of Canada has an online calculator here (https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html).

From the Government of Canada website: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

Use the calculation that maximizes your subsidy amount
– For claim periods 5 and 6 (July through September), you can use the calculation from period 4 (June to July) – the “safe harbour” rule: if you have a revenue drop of 30% or more, then you qualify for 75% of the eligible employees’ remuneration, up to a maximum of $847/week

For claim periods 5 to 9 (July to November):
– you can use the new calculation, as outlined below, you may also qualify for a top-up:

Note: Claim periods 7 and forward must use the new calculations

How much you can qualify for?
If your revenue drop is 50% or more in period 5 and 6 (July through September), your base rate is the maximum 60%. This means:
– Eligible employees earning $1,129/week or more would get $1,129 x 60% = $677.40/week
– Eligible employees earning less than $1,129/week would get 60% of their remuneration

If your revenue drop in claim period 5 or 6 (July through September) is 0-49%, your base rate is 1.2 times your revenue drop %. This means:
– If you had 20% revenue drop, your base rate is 20% x 1.2 = 24%
– Eligible employees earning $1,129/week or more would get $1,129 x 24% = $270.96/week
– Eligible employees earning less than $1,129/week would get 24% of their remuneration

WHAT ORGANIZATIONS CAN USE THE PROGRAM

The federal government finally expanded the list of organizations who are eligible for the wage subsidy, so that a sole proprietorship, partnership, non-profit/charity that meet the criteria are eligible to use the program moving forward. The same conditions apply for how much each organization can claim.

ANY OTHER QUESTIONS?

You can contact our office at 403-528-4698 or Glen.Motz@Parl.gc.ca.
You can also see this government of Canada website: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

HAVE YOU BEEN LEFT OUT?

If you are a worker or employer, and can’t access government programs related to COVID or need help finding information, do not hesitate to contact us at 403-528-4698 or Glen.Motz@Parl.gc.ca