Temporary Wage Subsidy Explained

Updated: Jun 15

For who? Small business (CCPC), NPOs, Charities that have an existing BN and payroll program account on March 18, 2020


How much is the subsidy? 10% of remuneration paid during the period up to a maximum subsidy of $1375 per employee and $25k per employer


How do I get it? By reducing your regular remittances paid to CRA on income taxes witheld on employees


Starting When? March 18th, 2020 for 3 months


How do I calculate the Wage Subsidy?​

  • The subsidy begins on remuneration paid after March 18, 2020 to June 19, 2020

  • The subsidy is calculated as 10% of total gross payroll

  • This amount will be deducted off the income tax you remit as a part of your payroll deductions

  • You MUST continue to remit CPP and EI as usual

  • If the subsidy exceeds the income tax to remit during the month, DO NOT grind down your cpp and EI payments, you will be allowed to deduct the remaining subsidy amount in future remittances even after June 20

  • Ensure that the subsidy does not exceed the maximum allowed ($1375 per employee or $25,000 per employer)

  • Reporting requirements: 3/18-6/20 payroll records, amounts deducted per employee, number of employees

  • The subsidy will count as taxable income

EXAMPLE 1 : You have a gross payroll amount of $30,000 and Payroll deductions of $5,500 (CPP,EI of $1500, Income Tax of $4000) Your wage subsidy would be $3000 ($30,000 x 10%) and would remit a total amount of $2500 ($5500-$3000).

EXAMPLE 2 : You have a gross payroll amount of $30,000 and Payroll deductions of $5,500 (CPP,EI of $3000, Income Tax of $2500) Your wage subsidy would be $3000 ($30,000 x 10%) but would remit a total of $3000 ($5500 - $2500). The remaining $500 would be deducted in future remittances.

What if I don’t reduce remittances during the year?

If you are an eligible employer, but choose not to reduce your payroll remittances during the year, calculate the temporary wage subsidy on remuneration paid between March 18, 2020, and June 19, 2020. You can then ask for the subsidy to be paid to you at the end of the year, or transferred to the next year’s remittance

What records do I need to keep?

  • the total remuneration paid from March 18, 2020 to June 19, 2020;

  • the federal, provincial, or territorial income tax that was deducted from that remuneration; and

  • the number of eligible employees employed in that period.

Korean Ver.


누가 신청할수있나요? 스몰비즈니스 (CCPC), NPO, Charities, 3/18 현재 국세청에 payroll account(RP) 가 있는 business 만 해당됨. 그 이후에 open 하는 것은 불인정됨.


금액은 얼마 받을수있나요? 매달 급여에 10% (종업원 1인당 최대 $1375 회사당 $25,000)


어떻게 해야 신청한가요? 신청 필요없음. 매달 페이롤택스에 납부금액에서 차감하여 국세청에 납부한다. 더자세한 계산 방법은 다음 노티스에 업데이트 될것입니다.


언제부터 받을수있나요? 3월 18일부터, 3개월간


​​섭시디 계산 정확히 어떻게해야 하나요?​

  • 3/18-6/20 사이에 지급된 wage 에 대한 총 10% 로 종업원당 최대 $1,375, 회사당 최대 $25,000 까지임. 예를 들면, 회사당 $25,000 일지라도 종업원이 5명일경우는 $6,875($1375 x 5) 까지 인정됨. 결론적으로 종업원이 많이 있을수록 보조금이 많아집니다.(종업원수 X $1,375)

  • 이 기간동안 한달 급여가 5명의 종업원이 각자 $4,100 일 경우 총 급여가 $20,500으로, 10%인 subsidy 는 $2,050 임.

  • 매달 납부하는 Payroll source deduction에서 Income tax deduct 금액을 줄여주는 것으로 CPP, EI는 줄여줄 수 없습니다

  • Subsidy 가 income tax deducted remittance를 초과하는 경우는 6/20 이후에도 차액을 payroll source deduction 납부시 차감할수 있습니다.

  • 예를 들면 위 예시에서 $2,050 subsidy 인경우, 3개월 기간동안 income tax deducted 가 $1,050 인 경우, 6/20 이후 2020 년 말까지 $1,000을 감소하여 납부하면 됩니다. 그리하여도 못 사용할 경우 내년에 사용하거나 SUBSIDY를 년말에 환급 요청할수 있습니다.

  • Book and Record를 기록하여 보관할 의무가 있습니다: 3/18-6/20 사이의 payroll record, 종업원 당 income tax deducted 금액, 종업원수

  • Subsidy 는 회사의 taxable income 으로 결산시 수입으로 산입하여야 합니다.

  • Subsidy 기간 동안에 종업원에게 급여를 주지 못하였다 면, subsidy 는 받지 못합니다.


PARK & COMPANY

Suite 300 4838 Richard Road SW Calgary, AB | 403 252 1588 | tax@parkcompany.ca