Canadian Press File Photo

By Chris Brown

WAGE SUBSIDY DETAILS

Morneau to businesses: Get ready to rehire people

Apr 1, 2020 | 1:10 PM

Federal Finance Minister Bill Morneau offered five words to Canadian businesses this afternoon: Get ready to rehire people.

At a news conference regarding the federal wage subsidy announced on Monday, Morneau called the subsidy “a boost to confidence we all need.”

A business will be eligible if revenue has decreased by at least 30 per cent as a result of COVID-19. The number of employees has no bearing on the eligibility requirement.

Eligibility on the 30 per cent figure will be determined by comparing revenues to the same month in the previous year and businesses will need to re-apply for the subsidy each month.

The subsidy will cover 75 per cent of a worker’s salary on the first $58,700 earned, for a total of $847 each week. The payments will be backdated to March 15.

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As Prime Minister Justin Trudeau revealed earlier this week, the subsidy is available to big and small businesses, individuals, corporations and partnerships not publicly-funded.

Morneau made special mention of the hospitality sector, noting restaurants and bars have been hit particularly hard and said the subsidy will be managed “effectively and flexibly.”

An application process will be set up online and funds will be available in about six weeks, Morneau said.

Morneau also re-iterated Trudeau’s message of severe consequences for businesses that try to take advantage of the system and urged businesses to pay the remaining 25 per cent of wages.

Information from the Canadian Federation of Independent Business on Monday suggests one in five small and medium-sized businesses remain open during the economic shutdown linked to COVID-19, while two in five are worried about having to permanently close.

As of Wednesday Canada had 9,005 confirmed cases, 12 probable cases and 105 deaths. There have been 250,095 Canadians tested.