Payworks introduces Temporary Wage Subsidy Calculator
Mar 26, 2020Innovation
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With the overwhelming amount of information coming at all of us in these unprecedented times, it can be difficult to understand what this change looks like in real dollars and cents! Payworks is here to help.
The Calculator Functionality
For Payworks clients who are eligible to receive the subsidy, we’re happy to provide a convenient Temporary Wage Subsidy Calculator, which calculates the subsidy applicable on your next payroll run and will reduce your remittance value by that amount. A second phase of this solution that allows for manual override (so as to take advantage of any remittance reductions that you qualify for retroactively) is also in the works and will be available any day now. Clients can log into their Payworks account to access a helpful video tutorial and step-by-step instructions on how to use the calculator tool.
Here are the basics of this subsidy itself:
For any employee you pay during the time period of March 18 to June 30, 2020, you can take 10% of the remuneration you pay and hold it back from your tax remittances.
For example, if you have five employees earning monthly salaries of $4,100 (for a total monthly payroll of $20,500), the subsidy would be 10% of $20,500 (or $2,050).
The maximum subsidy available is $25,000 per employer. However, there’s also a maximum based on the business’ number of employees – for example, in this same five-employee business, the maximum you can receive is $6,875 (or $1,375 per employee).
It’s also important to understand that this subsidy is not applicable to every business – you’ll need to confirm your business’ eligibility to receive the subsidy before applying it to your payroll. For all details, maximum parameters and eligibility requirements, please visit: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html.
Like you, we’re keeping a close eye on the changes in legislation that matter most to your business, and are here to answer your questions as always. We’ll continue to share what we learn – we’re all in this together.
For more information, email firstname.lastname@example.org.
Key topics in this article:Innovation