Many business owners may have forgotten about the 10% Wage Subsidy (TWS) Program. The Canadian government announced the program in March, near the beginning of the COVID-19 pandemic. Soon afterward, they announced CEWS (Canada Emergency Wage Subsidy).
Who Can Apply?
CEWS is tied to income, so businesses without a large enough income drop may have given up on receiving help with wage costs. But, as the 10% Wage Subsidy is not tied to income, there is still an opportunity for these businesses to receive a wage subsidy. Any business with employees on payroll between March 18th and June 19th 2020 is eligible for the TWS. The subsidy is capped at $1,375 per employee or $25,000 per employer.
Originally, the deadline to apply was December 19th 2020. This date is no longer shown online, but we still recommend applying before that date.
10% Wage Subsidy and CEWS
Applying for both the TWS and CEWS is allowed. However, you must reduce your CEWS claim by the amount you receive from the TWS. Therefore, if you already have received CEWS, you do not need to apply for this subsidy as well.
However, if you are a business owner who did not apply for CEWS or who did not qualify, for example if your income drop wasn’t large enough, be sure to take advantage of the 10% Wage Subsidy.
You can find the application form here.
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It is always a good idea to contact your advisor to discuss your personal or business finances. We stay up to date on the current government programs available for business owners and are always happy to help our clients with the application process. If you’re in need of an accountant, check out our services page or book a “Get to Know You” meeting with us by clicking here!