CRA publishes a webpage on the COVID-19 employer wage subsidy
23 March 2020 - 11:39pm
Points made by CRA on the three-month Temporary Wage Subsidy for Employers include:
- Eligible employers consist of non-profit organizations, registered charities, and Canadian-controlled private corporations (whose taxable capital employed in Canada for the preceding taxation year, calculated on an associated group basis, is less than $15 million) who had a business number and payroll program account with CRA on March 18, 2020 and who pay salary, wages, bonuses, or other remuneration to an employee.
- The subsidy equals 10% of the remuneration paid between March 18, 2020, and June 20, 2020, to a maximum of $1,375 per employee and of $25,000 per employer (with associated CCPCs not being required to share the $25,000 maximum).
- The subsidy would normally be received by way of set-off against the federal and provincial income tax source deductions otherwise remittable for the related remittance period, but the unused set-off can be carried forward for set-off in future remittance periods (e.g., after the expiration of the program effective June 20) or, if the employer so prefers, it can instead wait until year end and apply for a refund then.
- There is no effect on employee source deductions (this is an employer subsidy).
- The subsidy is included in income (presumably under ss. 12(1)(x)(ii) and (iv)(B).)
Neal Armstrong. Summary of Frequently Asked Questions – Temporary Wage Subsidy for Employers 20 March 2020 CRA Webpage under s. 227(4).