CRA announces that individuals are eligible for the temporary wage subsidy

CRA has revised its Webpage on the “Temporary Wage Subsidy for Employers.” The biggest change is to expand the list of eligible employers to include individuals other than trusts. In particular, CRA states:

You are an eligible employer if you are a(n):

• individual (excluding trusts),
• partnership (see note below),
• non-profit organization,
• registered charity, or
• Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction;

• have an existing business number and payroll program account with the CRA on March 18, 2020; and
• pay salary, wages, bonuses, or other remuneration to an eligible employee.:

… Partnerships are only eligible for the subsidy if their members consist exclusively of individuals (excluding trusts), registered charities, or Canadian-controlled private corporations eligible for the small business deduction.

There is no stated exclusion for employees who are related to the employer.

The temporary wage subsidy is not to be confused with the more expansive wage subsidy - that was announced last week and fleshed out further today in a Finance Backgrounder - under which all businesses (including those not structured as a CCPC, such as public corporations and partnerships), charities and non-profit organizations that sustain a 30% decrease in revenue (based on a month-by-month comparison to the corresponding 2019 month) due to COVID-19 can receive a subsidy retroactive to March 15, 2020 that covers up to 75% of wages (subject to a numerical limitation) for up to 3 months. Employers that do not qualify for this emergency wage subsidy may qualify for the above temporary wage subsidy.

Neal Armstrong. Summary of Frequently Asked Questions – Temporary Wage Subsidy for Employers, 30 March 2020 CRA Webpage under s. 227(4).