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Update : 2020-05-21
Temporary Wage Subsidy for Employers (TWSE) - 10 %

The Temporary Wage Subsidy for Employers is a three-month measure effective March 18, 2020, that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA).

The subsidy is equal to 10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee and to a maximum of $25,000 total per employer.

Note: Associated CCPCs will not be required to share the maximum subsidy of $25,000 per employer.

Eligible employer:

  • are a(n):
    • individual (excluding trusts),
    • partnership (see note below),
    • non-profit organization,
    • registered charity, or
    • Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction;
  • have an existing business number and payroll program account with the CRA on March 18, 2020; and
  • pay salary, wages, bonuses, or other remuneration to an eligible employee.

CCPCs are only eligible for the subsidy if they have a business limit for their last taxation year that ended before March 18, 2020, greater than nil (determined without reference to the passive income business limit reduction).

An eligible employee is an individual who is employed in Canada.

Note: Partnerships are only eligible for the subsidy if their members consist exclusively of individuals (excluding trusts), registered charities, or Canadian-controlled private corporations (CCPCs) eligible for the small business deduction.

You can start reducing payroll remittances of federal, provincial, or territorial income tax in the first remittance period that includes remuneration paid from March 18, 2020 to June 20, 2020.

    • For example, if you are a regular remitter, you can reduce your payroll remittance that is due to the CRA on April 15, 2020;
    • You cannot reduce your remittance of Canada Pension Plan contributions or Employment Insurance premiums;
    • If the income taxes you deduct are not sufficient to offset the value of the subsidy in a specific period, you can reduce future payroll remittances to benefit from the subsidy. This includes reducing remittances that may fall outside of the application period for the wage subsidy (after June 19, 2020).

The TWSE is a taxable income, you must report the total amount as income in the year in which the subsidy is received.

Frequently Asked Questions
Temporary Wage Subsidy for Employers
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