Justin Trudeau reveals wage subsidy for businesses that see 30 per cent or more drop in revenue

News Mar 30, 2020 by Bruce Campion-Smith Toronto Star

OTTAWA—Any business that has seen a drop of 30 per cent or more in revenue because of the fallout of COVID-19 will be eligible for federal wage subsidies of 75 per cent to help keep workers on the payroll.

Prime Minister Justin Trudeau on Monday revealed more details of the government’s expanding wage subsidy program. Originally targeted to help small to medium sized enterprises, Trudeau said it would now be available to all employers, regardless of the number of employees, as well as non-profit organizations.

The subsidy will cover 75 per cent of an employees’ salary up to $58,000, working out to $847 a week, Trudeau said. The payments will be backdated to Mar. 15.

The prime minister urged employers to rehire employees who were already laid off because of the widespread closures across the economy and where possible, to top up wages to cover the remaining 25 per cent.

He also warned employers not the “game” the program and said there would be consequences for those found to be cheating the subsidy program.

“If there is abuse, there will be severe consequences for anyone who takes advantage of the system and therefore takes advantage of Canadians,” Trudeau said.

Trudeau was unable to say what the cost of the program might be, saying the focus now is keeping employees on the job. But he said Finance Minister Bill Morneau would have additional details, including the costing, on Tuesday.

Justin Trudeau reveals wage subsidy for businesses that see 30 per cent or more drop in revenue

News Mar 30, 2020 by Bruce Campion-Smith Toronto Star

OTTAWA—Any business that has seen a drop of 30 per cent or more in revenue because of the fallout of COVID-19 will be eligible for federal wage subsidies of 75 per cent to help keep workers on the payroll.

Prime Minister Justin Trudeau on Monday revealed more details of the government’s expanding wage subsidy program. Originally targeted to help small to medium sized enterprises, Trudeau said it would now be available to all employers, regardless of the number of employees, as well as non-profit organizations.

The subsidy will cover 75 per cent of an employees’ salary up to $58,000, working out to $847 a week, Trudeau said. The payments will be backdated to Mar. 15.

The prime minister urged employers to rehire employees who were already laid off because of the widespread closures across the economy and where possible, to top up wages to cover the remaining 25 per cent.

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He also warned employers not the “game” the program and said there would be consequences for those found to be cheating the subsidy program.

“If there is abuse, there will be severe consequences for anyone who takes advantage of the system and therefore takes advantage of Canadians,” Trudeau said.

Trudeau was unable to say what the cost of the program might be, saying the focus now is keeping employees on the job. But he said Finance Minister Bill Morneau would have additional details, including the costing, on Tuesday.

Justin Trudeau reveals wage subsidy for businesses that see 30 per cent or more drop in revenue

News Mar 30, 2020 by Bruce Campion-Smith Toronto Star

OTTAWA—Any business that has seen a drop of 30 per cent or more in revenue because of the fallout of COVID-19 will be eligible for federal wage subsidies of 75 per cent to help keep workers on the payroll.

Prime Minister Justin Trudeau on Monday revealed more details of the government’s expanding wage subsidy program. Originally targeted to help small to medium sized enterprises, Trudeau said it would now be available to all employers, regardless of the number of employees, as well as non-profit organizations.

The subsidy will cover 75 per cent of an employees’ salary up to $58,000, working out to $847 a week, Trudeau said. The payments will be backdated to Mar. 15.

The prime minister urged employers to rehire employees who were already laid off because of the widespread closures across the economy and where possible, to top up wages to cover the remaining 25 per cent.

Related Content

He also warned employers not the “game” the program and said there would be consequences for those found to be cheating the subsidy program.

“If there is abuse, there will be severe consequences for anyone who takes advantage of the system and therefore takes advantage of Canadians,” Trudeau said.

Trudeau was unable to say what the cost of the program might be, saying the focus now is keeping employees on the job. But he said Finance Minister Bill Morneau would have additional details, including the costing, on Tuesday.