On March 27, 2020, the Government of Canada announced that it
would be increasing a previously announced wage subsidy for small
and medium businesses from 10% to 75%. The stated goal is to
help employers keep employees on the payroll. The wage subsidy
will be backdated to Sunday, March 15, 2020. No further
details were provided in the announcement, but the Government has
stated further details will be available by Monday, March 30,
2020.
What does this mean for employers? Much of
this will depend upon the details of the subsidy. The previous
10% subsidy had monetary limits per employee and per employer and
was stated to be for a 3-month period. It is unclear whether
similar restrictions will be in place for the 75% subsidy, but it
is reasonable to expect there will be some limits.
