Personal Finance

Government Relief for Businesses & Non-Profits: 75% Wage Subsidy

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  • May 23rd, 2020 1:01 am
[OP]
Deal Guru
Feb 24, 2018
13799 posts
14199 upvotes

Government Relief for Businesses & Non-Profits: 75% Wage Subsidy

Per the federal government, a 75% wage subsidy for employers to pay employees.

Once they solidify qualifying details, I'm going to have some very happy employees.

Bless.
Last edited by redflagdealsguy on Mar 30th, 2020 2:25 pm, edited 1 time in total.
>> Govt. Relief for Businesses: 75% Wage Subsidy <<

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Sr. Member
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Nov 30, 2005
797 posts
182 upvotes
Belleville, ON
What's the point of keeping employees or even business open when there are no customers? Businesses have tons of expenses not covered by anyone and people expect them to remain open? So many will go belly up from this.
Deal Addict
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Nov 17, 2004
2566 posts
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Let’s see what the qualifications are.

Depending on what they are, I may think about rehiring some of my staff to do some behind the scenes work even though we’ve shut down 100% due to COVID-19.
Banned
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May 21, 2019
199 posts
148 upvotes
Some employees might prefer being laid off... Get paid to netflix and chill.
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Nov 17, 2004
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MagicPants wrote: Some employees might prefer being laid off... Get paid to netflix and chill.
Pretty sure that when somebody usually makes several times more than the $2000/month being offered, they're not going to prefer to be laid off so that they can netflix and chill and fall behind on their bills
[OP]
Deal Guru
Feb 24, 2018
13799 posts
14199 upvotes
$2,000 a month is not much to someone accustomed to earning their keep.

Pending Monday's qualification details from Trudeau, we have a list of people we can bring back.

Trudeau listened to CFIB and the Chamber of Commerce.
>> Govt. Relief for Businesses: 75% Wage Subsidy <<

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Whatever your personal opinion, please respect hygiene and PPE guidelines and mandates laid down by (1) government, (2) private establishments.
Member
Jun 7, 2010
264 posts
134 upvotes
Toronto
Will be interesting to see if they class contract workers as employees for the 75%. If that's so and you have a business and pay yourself as a contractor, in theory you could borrow the 40K through the business credit program, pay yourself 4k/month, get reimbursed 3k, govt writes off the the other 10k, business pays back the 30k in future. Might have to do some in depth calculations to see if better to get 2k tax free (if that ends up being correct) or (if above guesses end up being correct) 4k taxable and invest the 1k in etf's at the bottom til tax bill comes due...
Deal Fanatic
Aug 21, 2007
5404 posts
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Markham
bradinvancouver wrote: Will be interesting to see if they class contract workers as employees for the 75%. If that's so and you have a business and pay yourself as a contractor, in theory you could borrow the 40K through the business credit program, pay yourself 4k/month, get reimbursed 3k, govt writes off the the other 10k, business pays back the 30k in future. Might have to do some in depth calculations to see if better to get 2k tax free (if that ends up being correct) or (if above guesses end up being correct) 4k taxable and invest the 1k in etf's at the bottom til tax bill comes due...
I would be surprised to see contractors included, given that the original subsidy was to deduct against payroll remittances which only apply for employees.

Also the 40k loan only applies if you have payroll above 50k (up to 1M) - and if you read the updated Covid response plan it says can get up to 40,000 - my sense is that it will be tier based so that the amount you are eligible for will be based on your payroll expense, likely based on your 2019 t4 summary.
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Dec 12, 2006
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Messed Up Area
ZxExN wrote: What's the point of keeping employees or even business open when there are no customers? Businesses have tons of expenses not covered by anyone and people expect them to remain open? So many will go belly up from this.
Agreed, plus when this is over, the work these employees have done during this period with have saturated or overstocked market, making it time for real layoffs.
Member
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Jan 7, 2019
272 posts
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I hope you guys realize it's not free money for everyone. There will be requirements for qualifications. The government isn't going to give money to a business that was on the verge of failing just because this virus dropped in.
Remember to always Thumbs Up good responses! Spread positively.
Deal Fanatic
Oct 7, 2007
6666 posts
2959 upvotes
I was looking for more information on the 75% program for wage subsidies. Somehow I get the feeling that it sounds more generous than it actually is. However, I have yet to find the details.
[OP]
Deal Guru
Feb 24, 2018
13799 posts
14199 upvotes
Wait until Monday folks, Trudeau has promised more details by then.

There's a reason I haven't called my staff back yet.
>> Govt. Relief for Businesses: 75% Wage Subsidy <<

COVID-19 Etiquette
Whatever your personal opinion, please respect hygiene and PPE guidelines and mandates laid down by (1) government, (2) private establishments.
Newbie
Mar 28, 2020
1 posts
1 upvote
From what I understand its only relief on the income tax remitted. Not on the entire payroll you pay to employees so it does help but doesn't cover 75% of the payroll

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