Emergency Wage Subsidy Canada

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Rick Hyne

Rick Hyne

Hello, I am the CEO of Shepherd 360!. I have spent a great many years managing people, places and things including business operations.

I am knowledgeable in small business bookkeeping, operating a small commercial real estate company, project management and a lot of technology.

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It should have been put in place from the start when businesses were shutting down!

This is an opinion post and will not provide information or instruction on how to apply.

If you are a business owner then you probably already know about the Emergency Wage Subsidy Program, or C-14 a program designed to help employers who have lost over 30% of their revenue due to COVID-19 pay their employees. [Note: Due to the feds throwing money at the wall to see what sticks, this program may have changed.]

Now here is my take on this program.

It should have been put in place from the start when businesses were shutting down!

That deserves repeating.

It should have been put in place from the start when businesses were shutting down!

That’s right. I am of the view that all businesses that have employees are already setup to manage this program. They know who to pay and for how much. They have payroll records and remittance information so the government knows who they are and how much support is needed.

But, no. Due to the failure of the EI system to process claims, those who lost their jobs due to the pandemic, not a forest fire, earthquake or some other natural disaster, but due to the pandemic received $2,000 which is taxable income without having to pay the tax. For now anyway.

If our Prime Minister had simply put this program in effect from the beginning, we would not have had to defer mortgages, or other financial obligations. Employees could have remained at home paying their bills receiving their paycheques as they had done previously.

The employer could have easily recalled them and that sense of the new normal could have been realized.

Now it seems those who know how to use a computer are applying to receive CERB including a retired couple with an AirBnB because they lost their income.

My fear now is that businesses, especially small business are going to be hit hard with extra fees and taxes. Whether it will be a new payroll tax, increased EI premiums, new requirements to protect workers and gawd knows what else. Why?! Because someone is going to have to pay back the billions of dollars handed out. So it will be small business’ and the middle class on the hood for it.

Going forward, we now see the Feds expanding and extending this program as a way to fix the mess they created in the first place.

Ok. Enough ranting.

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