10% Wage subsidy -TWS
- a small buysiness can keep 10% of source dedcutions on taxes remitted for employees as a way to help with cash flow. You can deduct this portion from your remttance payment on wages dating back to March 15, 2020
- The subsidized amount will then be taxable income
Canada Emergency Wage Subsidy- CEWS
The proposed Canada Emergency Wage Subsidy would cover 75 per cent of salaries for qualifying businesses, for up to 3 months, retroactive to March 15, 2020.
Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details on how to apply will follow soon.
Website link is below.
Canada Emergency Business Account
The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. The loans will feature attractive interest rates and if repaid by December, 2022, the last $10,000 may be waived.
To qualify, these organizations will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019.
This program will roll out in mid-April, and interested businesses should work with their current financial institutions.
**VERY IMPORTANT**
We realize for some of you this does not answer all your questions. Such as, I have an investment company but do I still qualify? There is no mention of what type of company you have to own in the CERB web site or if cash in the bank is a factor to qualify. So, based on the guidleness released, we are thinking you are safe to apply. But, please be very careful that your drop in income is 100% COVID related. CRA has stated that abusers of the system will be heavily penalized in terms of penalties and interest. Retain clear documentation to ensure no issues if you are audited.
**All subsidies will be taxable
As other questions and issues arise we will update this site.