Local accountant explains some rule changes on federal wage subsidy program

Gayle Walton of Peace River says she is getting a lot of questions about a federal government wage subsidy program.

Walton is a Partner with InVision Chartered Professional Accountants, and a CPA, and says some of the regulations regarding the Canadian Emergency Wage Subsidy (CEWS) have changed.

She tells the Trending 55 Newsroom that she feels the biggest difference is the change in how much revenue a business had to lose in order to qualify.

“It used to be a 30 percent revenue drop, or you got nothing for a subsidy,” explains Walton. “More businesses are going to qualify under the new rules but on average, those subsidy dollars per-businesses will probably be smaller.”

She points out that the deadline to apply for relief under the CEWS program is January 31.

“If you missed applying, you can still apply for wages paid all the way back to the beginning of the subsidy program, which is the middle of March,” says Walton.

She reminds business owners that the program will be in effect until November 21 of this year.

“There is talk that they (the federal government) may extend the program by another month to December but probably nothing more past that,” she says.

Walton closes with reminding entrepreneurs to track their revenue.

“The wage subsidy percentage is so driven by the revenue reduction drop, so it is very important that your revenue be accurately reported in your books passed on the period, or month, it relates to,” concludes Walton.

– Kenny Trenton, Trending 55

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