By: Fabio Campanella CPA, CA, CFP, CIM
Hello all employers.
Recently the Government of Canada announced a “Temporary Wage Subsidy for Employers.” This subsidy is designed to help businesses meet their payroll needs by providing a subsidy 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.
Some summary points below:
- Associated (Canadian Controlled Private Corporations) CCPCs will not be required to share the maximum subsidy of $25,000 per employer.
- You must calculate the subsidy yourself.
- You access the subsidy by reducing your current remittance of federal, provincial, or territorial income tax that you send to the CRA by the amount of the subsidy.
- The reduction does not affect deductions for your employees.
- The subsidy is considered taxable income.
For frequently asked questions about the subsidy: CLICK HERE
For a nifty (and FREE) excel template to assist you when calculating the subsidy: CLICK HERE
We hope this help!
Fabio Campanella CPA, CA, CFP, CIM is a founding partner of Campanella McDonald LLP. He is a tax specialist, an investment advisor, and an estate and life insurance advisor licensed in the Province of Ontario. His practice focuses on building tax-efficient retirement and estate plans for small business owners, retirees, and high-income earning professionals. You can access his website by clicking HERE.