Today, CADA welcomed the details on the new Canada Emergency Wage Subsidy (CEWS) program announced by Finance Minister Bill Morneau. At this time, these are the most important highlights for dealers:
- The Canada Emergency Wage Subsidy would apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week;
- The program will be in place for 3 months, retroactive to March 15th and until June 6th;
- Dealers of all sizes who have experienced a decline in gross revenues of at least 30% from last year in March, April and May would be able to access the subsidy. Dealers will have to re-apply each month and should begin gathering the 2019 comparison data now to be ready to apply;
- Entitlement to the amount of the wage subsidy is based entirely on the salary or wages actually paid to employees. Employers need to make their best-effort to top up employees’ salaries;
- Funds will be available through an online portal via CRA in the next 3-6 weeks. CADA will share the link as soon as it is available. The Finance Minister noted that funds will be available in 3-6 weeks, so dealers are encouraged to apply as soon as possible to ensure that they are able to access these funds as soon as possible;
- Dealers should ensure they have a direct deposit system in place with CRA so that can be utilized to receive the benefits;
- Eligible remuneration may include salary, wages, and other remuneration. These are amounts for which employers would generally be required to withhold or deduct amounts to remit to the Receiver General on account of the employee’s income tax obligation. However, it does not include severance pay, or items such as stock option benefits or the personal use of a corporate vehicle.
The Prime Minister also announced that Parliament will be recalled once again for an emergency sitting to pass additional measures that were announced Friday, including the CEWS. The government is working with opposition parties to determine the date for the emergency sitting.
Please remember that the government also delivered on short term liquidity request from CADA with more details to come. These include:
- Allowing dealers to defer all GST/HST payments until June 2020.
- New Access to Credit through Small and Medium-sized Enterprise Loan and Guarantee programs.
- Defer the payment of income taxes until August 31, 2020.
These are substantial wins for dealers, after a concerted push by CADA and dealers from across the country over the weekend and early this week. We would like to thank everyone for their efforts, and for you to know that CADA will continue to advocate for dealers and their needs during this health crisis and long after it.