Canadian Finance Minister Bill Morneau has released details on the Canada Emergency Wage Subsidy (CEWS) program. These details confirmed that RV dealers across Canada are eligible for the much-needed wage subsidy.
The RV Dealers Association of Canada stated that it welcomes the government wage subsidy program and is pleased that the government listened to its concerns and eliminated the $15 million taxable capital threshold as an eligibility criterion to access the wage subsidy program.
The CEWS was recently increased from 10 percent to 75 percent of an employee’s salary, and the eligibility was expanded to businesses of any size, regardless of the number of employees or whether or not they are a group or a partnership. The subsidies will be accessible for a period of three months and retroactive to March 15 until June 6.
Any business in Canada that has experienced a decline in revenue of at least 30 percent from last year in March, April and May would qualify for the benefit.
All RV dealers in the country would be eligible for the 75 percent wage subsidy to keep their employees on payroll or to re-hire them, as long as they can show a decline in revenue of 30 percent or more.
The Minister of Finance has announced that the funding will be accessible through an online portal via the Canadian Revenue Agency (CRA) in the next six weeks. Businesses are advised to make their best effort to pay the remaining 25 percent of their employees’ salaries.
Highlights of the Canada Emergency Wage Subsidy program include:
- The Canada Emergency Wage Subsidy would apply at a rate of 75 percent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week;
- The program will be in place for 3 months, retroactive to March 15 and until June 6;
- Stores of all sizes who have experienced a decline in gross revenues of at least 30 percent from last year in March, April and May would be able to access the subsidy. Will have to re-apply each month;
- Entitlement to the amount of the wage subsidy is based entirely on the salary or wages actually paid to employees. Employers need to make their best effort to top up employees’ salaries;
- Funds will be available through an online portal via CRA in the next 3 to 6 weeks.
- Eligible remuneration may include salary, wages, and other remuneration. These are amounts for which employers would generally be required to withhold or deduct amounts to remit to the Receiver General on account of the employee’s income tax obligation. However, it does not include severance pay or items such as stock option benefits or the personal use of a corporate vehicle.