The following table compares the originally announced and legislated 10% wage subsidy which remains in effect to the CEWS:
| Legislation |
| 10% Subsidy |
| Legislation enacted on March 25, 2020. |
| 75% Subsidy |
| Legislation enacted on April 11, 2020. |
| Eligible Employer |
| 10% Subsidy |
| An individual (other than a trust), certain partnership, a not-for-profit organization, a registered charity and a Canadian-controlled private corporation, eligible for the small business deduction. |
| 75% Subsidy |
| Individuals, taxable corporations, certain non-profit organizations, registered charities, and partnerships consisting of eligible employers.Public-sector entities, such as governments, schools, and hospitals are excluded. |
| Eligible Employee |
| 10% Subsidy |
| An individual employed in Canada. |
| 75% Subsidy |
| An individual employed in Canada by the eligible entity during the qualifying period.However, an individual will not be an eligible employee in a qualifying period if that individual did not receive remuneration from the eligible employer for 14 or more consecutive days in the qualifying period. |
| Eligible Periods |
| 10% Subsidy |
| March 18, 2020 to June 19, 2020. |
| 75% Subsidy |
Three initial eligible periods:
|
| Revenue Requirements |
| 10% Subsidy |
| Not applicable |
| 75% Subsidy |
Employer must have a drop of at least 15% of qualifying revenue in March 2020 and 30% of the qualifying revenue in April 2020 and May 2020. The reduction can be measured using any one of the following two benchmarks:
|
| Amount of subsidy |
| 10% Subsidy |
| 10% of eligible remuneration paid during the eligible period, up to a maximum of $1,375 per employee and $25,000 per employer. |
| 75% Subsidy |
| Determined by the formula on an employee-by-employee basis depending on certain prescribed factors; generally available at a rate of 75% of eligible remuneration paid to employees, up to a maximum of $847 per employee. |
| Application |
| 10% Subsidy |
| No application is necessary. Instead, the employer reduces the income tax remittances by the subsidy amount. |
| 75% Subsidy |
| Eligible employers to apply through My Business Account portal or a web-based application, when available. |
| Interaction of the subsidies |
| 10% Subsidy |
| If an employer qualifies under both the Subsidy programs, the employer’s benefit under the 10% Subsidy will remain the same and does not get affected. |
| 75% Subsidy |
| If an employer qualifies under both the Subsidy programs, the employer’s benefit under the 75% Subsidy will be reduced by an amount equal to the employer’s benefit under the 10% Subsidy. |
| Taxability |
| 10% Subsidy |
| Amount is taxable to the employer. |
| 75% Subsidy |
| Amount is taxable to the employer. |
| Penalty provisions |
| 10% Subsidy |
| No specific penalty provisions are proposed. |
| 75% Subsidy |
| Abuse of the 75% Subsidy program may result in a penalty of up to 25% of the benefit received (plus full repayment) and up to five years imprisonment. Penalties/ punishments under existing provisions of the Income Tax Act will also apply if the employer makes a deceptive statement. |
The following table compares the originally announced and legislated 10% wage subsidy which remains in effect to the CEWS:
| Legislation | |
| 10% Subsidy | 75% Subsidy |
| Legislation enacted on March 25, 2020. | Legislation enacted on April 11, 2020. |
| Eligible Employer | |
| 10% Subsidy | 75% Subsidy |
| An individual (other than a trust), certain partnership, a not-for-profit organization, a registered charity and a Canadian-controlled private corporation, eligible for the small business deduction. | Individuals, taxable corporations, certain non-profit organizations, registered charities, and partnerships consisting of eligible employers. Public-sector entities, such as governments, schools, and hospitals are excluded. |
| Eligible Employee | |
| 10% Subsidy | 75% Subsidy |
| An individual employed in Canada. | An individual employed in Canada by the eligible entity during the qualifying period. However, an individual will not be an eligible employee in a qualifying period if that individual did not receive remuneration from the eligible employer for 14 or more consecutive days in the qualifying period. |
| Eligible Periods | |
| 10% Subsidy | 75% Subsidy |
| March 18, 2020 to June 19, 2020. | Three initial eligible periods:
|
| Revenue Requirements | |
| 10% Subsidy | 75% Subsidy |
| Not applicable | Employer must have a drop of at least 15% of qualifying revenue in March 2020 and 30% of the qualifying revenue in April 2020 and May 2020. The reduction can be measured using any one of the following two benchmarks:
|
| Amount of Subsidy | |
| 10% Subsidy | 75% Subsidy |
| 10% of eligible remuneration paid during the eligible period, up to a maximum of $1,375 per employee and $25,000 per employer. | Determined by the formula on an employee-by-employee basis depending on certain prescribed factors; generally available at a rate of 75% of eligible remuneration paid to employees, up to a maximum of $847 per employee. |
| Application | |
| 10% Subsidy | 75% Subsidy |
| No application is necessary. Instead, the employer reduces the income tax remittances by the subsidy amount. | Eligible employers to apply through My Business Account portal or a web-based application, when available. |
| Interaction of the Subsidies | |
| 10% Subsidy | 75% Subsidy |
| If an employer qualifies under both the Subsidy programs, the employer’s benefit under the 10% Subsidy will remain the same and does not get affected. | If an employer qualifies under both the Subsidy programs, the employer’s benefit under the 75% Subsidy will be reduced by an amount equal to the employer’s benefit under the 10% Subsidy. |
| Taxability | |
| 10% Subsidy | 75% Subsidy |
| Amount is taxable to the employer. | Amount is taxable to the employer. |
| Penalty Provisions | |
| 10% Subsidy | 75% Subsidy |
| No specific penalty provisions are proposed. | Abuse of the 75% Subsidy program may result in a penalty of up to 25% of the benefit received (plus full repayment) and up to five years imprisonment. Penalties/ punishments under existing provisions of the Income Tax Act will also apply if the employer makes a deceptive statement. |
