On March 18th, 2020, the federal government released Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses.
The response plan provides businesses, charities and individuals with up to C$27 billion in direct support to help stabilize the economy during this challenging period. The implementation of the rebate is a quick and easy way of ensuring that your services continue to be available during this unprecedented time.
Starting immediately, the federal government is allowing eligible organizations a temporary wage subsidy for three months. The rebate will be equal to 10% of the remuneration paid during that period, up to a maximum allowance of C$1,375 per employee and C$25,000 per employer. Organizations will be able to benefit immediately from this support by reducing their remittances of income tax (not CPP, EI or EHT) withheld on their employee’s remuneration.
As an example, if your federal tax withholdings are C$35,000 for a pay period, you are eligible to remit to the federal government only C$31,500; the balance of C$3,500 can be retained by the organization and used as it sees fit. The rebate is for a period of 3-months, and the cumulative amount cannot exceed C$25,000 for the organization.
We at The Osborne Group are committed to helping you during this unprecedented time. If you are considering participating in the above program, reach out to Jeffrey Roy CPA, CA, to discuss how we can quickly implement this rebate at your organization.
