Last updated June 17, 2020: Please note that tax policies are changing rapidly. We are updating this article as details are made available.
The 10% Temporary Wage Subsidy for Employers reduces the amount of income tax source deductions that employers have to remit to CRA on behalf of their employees by up to 10% of their remuneration (to a maximum of $1,375 per employee, up to $25,000 per employer). Many employers whothat qualify for the CEWS also qualify for the 10% Temporary Wage Subsidy for Employers.
CEWS and the 10% Temporary Wage Subsidy for Employers are intended to provide total support of up to 75% for payroll, not 75% + 10%. If you did not reduce the source deductions you remitted to the CRA, but you were entitled to the 10% Temporary Wage Subsidy for Employers, the CRA will treat you as having over-remitted your employee source deductions (so that normally you will be entitled to a refund).
Eligibility
You are an eligible employer if you:
are a non-profit organization, registered charity, or a Canadian-controlled private corporation (CCPC);
have an existing business number and payroll program account with the CRA on March 18, 2020; and
pay salary, wages, bonuses, or other remuneration to an employee oth.er than trusts).
Subsidy Calculation
How to receive the subsidy
Once you have calculated your subsidy, you can reduce your current remittance of federal, provincial, or territorial income tax that you send to the CRA by the amount of the subsidy.
Important: You cannot reduce your remittance of Canada Pension Plan contributions or Employment Insurance premiums.
For example, if you calculated a subsidy of $2,050, you would reduce your current remittance of federal, provincial, or territorial income tax by $2,050. You could continue reducing future income tax remittances, up to the maximum of $25,000, for all remuneration paid before June 20, 2020.