New 75% Wage Subsidy for Businesses
Earlier today, the Federal government announced additional support for small and medium-sized businesses with the goal of encouraging businesses not to reduce staffing levels during the ongoing COVID-19 pandemic.
The centrepiece of this announcement is a significantly expanded wage subsidy. The Federal government had previously announced a 10% wage subsidy for businesses, which has now been increased to 75%. The enhanced wage subsidy will be retroactive to March 15, 2020.
Details are sparse at this time, but the earlier 10% wage subsidy was limited to businesses whose taxable capital was less than $15 million in the preceding tax year and to a maximum of $25,000. It remains to be seen whether the threshold and limitation for the enhanced wage subsidy will be the same.
More details on the new wage subsidy will be announced Monday. We will be sure to keep you posted.
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