Prime Minister Justin Trudeau’s latest policy developments are an ongoing answer to the current fight against ‘COVID-19’. This is part of countrywide change management. Hence, sustainable developments from the Canadian Govt., i.e. resistance through action in the form of ‘WSP’ or Wage Subsidiary Program. As the whole world is undergoing a crisis situation that cannot be taken for granted. In this regard, the Prime Minister has lately announced many policies. These are part and parcel with regard to the current developments of the global crisis. Many businesses have been affected. The country is under lockdown and there are many self-employed workers and SMEs affected. Innumerable small businesses are currently under financial crisis due to ‘COVID-19’.
The aim of the current developments by Justin is to assure financial stability. Therefore, the importance is to highlight that businesses are not fully shut down. The Government wants people can join back work once the conditions are fully stable as normal. Announced by the Honourable Prime Minister in his latest policy developments. Known by the name of the Wage Subsidiary Program, it aims for reforms through policy measurements. This is as part of the recovery and sustenance efforts by the Canadian Govt. Amid the COVID-19 Outbreak and to overcome its financial effects. Loans are offered by the Govt. to SME’s preferably, and to large businesses.
The Govt. has announced a loan recovery program also for self-employed workers so that their losses can be sustained. This means making reconciliations to make sure that no Self-employed worker sustains losses. A work from the home facility is readily available for people in Canada according to Justin Trudeau’s Policies. Furthermore, the Govt. is offering work sharing as well. Applies to those whose close relatives are undergoing the effects of Coronavirus. These are people who can’t work even from home.
WHAT IS ‘WSP’ OR WAGE SUBSIDIARY PROGRAM?
A ‘WSP’ or Wage subsidiary program is a policy program. This is as part of the recovery process i.e. introduced by the Canadian Govt. as a reconciliation. The employer shall have to pay just 25%, the rest of it shall be paid by the Govt. This is in order to avoid a jobless scenario for any employee.
The application of this program is on the first $58,700 of the wages. Hence. this means $847/week of payments by the Govt. due to the crisis. Wage Subsidiary Program will help fast in the recovery process. Ironically, as redundancies and a jobless scenario is the next level threat in such a pandemic. Hence, it is also is a form of ‘Employment Insurance’ or EI, as it assures employment to a great extent.
According to the Prime Miniter Justin Trudeau, the number of employees in an organization will not be a factor that might eliminate the subsidy. The elimination from a subsidy is only for non-profit organizations and charities as they are not regular taxpayers.
The regular taxpayers whether the employers or the employee shall benefit the most from the program. This is all part of the ‘Economic Life Support’ which the Govt. has recently announced for a fast recovery from the current scenario. ‘Wage Subsidiary Program’ shall take effect from a backdate i.e. 15th March. As mentioned by Mr. Trudeau in his much-anticipated speech. This means April wages will not get affected for all employees that are eligible for a ‘WSP’ or Wage Subsidiary Program.
‘WSP’ ELIGIBILITY CRITERIA FOR BUSINESSES IN CANADA
It is a huge step forward by the Canadian Govt. to help employers keep people on their respectable payrolls. The program is definitely for eligible and qualifying businesses as Prime Minister Justin has strictly warned that no fraud shall be treated with respect. In case of false claims and any forgery reported to authorities. The Canadian authorities shall be taking judicial action against the businesses. This shall be in case of heavy penalties to the businesses making false claims.
The program shall be effective for businesses if they have incurred revenues by less than 30% due to COVID-19. Business eligibility is a very important factor for the Govt. as there are many businesses in Canada that hold higher eligibility for the policy and they shouldn’t be left behind.
GOVT. FUNDED LOANS FOR BUSINESSES AMID ‘COVID-19’
Prime Minister Justin also announced the availability of loans from the financial crown courts that can be up to $40K. This means SME’s if they can prove to the Govt. that they have incurred heavy losses due to ‘COVID-19’. They shall be eligible for loans that can rise up to $40K.
These amounts shall obviously be decided by the Govt. according to the losses that are highly proved by the business owners. SME’s or Small and Medium Enterprises are more in danger of coming into a crisis situation than large businesses. The best part of this is that under certain circumstances up to $10K of loans could become non-repayable. This is applicable only in scenarios where the business owners can prove that the businesses can’t pay back and the loan of up to $10K should be wiped off.
The loan scenario is a bit different for large businesses, however, in most circumstances, it is for SMEs. Ironically, they are the ones that are most affected under the current crisis of ‘COVID-19’ according to the Prime Minister.
‘CERB’ OR CANADA’S EMERGENCY RESPONSE BENEFITS
‘CERB’ is a dedicated benefits scheme for people who lost their jobs, got sick and went into quarantine in current times. It is a program that offers income support for a period of 16 weeks. The amount that the Govt. shall pay to those who are eligible is $2000 per month until the situation gets stable.
A response benefit scheme that shows the strength of the Canadian economy under such extreme and helpless circumstances due to the pandemic ‘COVID-19’. Prime Minister, Justin is positive that Canada will fight against ‘COVID-19’ with full force, determination, and brains.