News

COVID 19 update Federal Wage Subsidy Program Information

Information is being posted here for wider circulation, however the primary target audience is BC Soccer (full and associate) members and affiliated soccer clubs.


As we have expressed previously, we are working to provide information and updates to our members (full and associate) and affiliated soccer clubs to best support them as we assess and work through the ongoing impacts of COVID-19.

As a collective soccer community, we are working under great uncertainty regarding when the suspension of soccer activity will be lifted by Canada Soccer. Based on our ongoing discussions with Canada Soccer, and rightfully so, their decision will be based on guidance and the lifting of health authority restrictions. It is important to also note that regional differences may be considered in their decision making as the realities of each province and territory is different. Safety is the priority.

Much of the soccer activity within BC Soccer’s membership is overseen and, in many cases, operated solely by volunteers. However, some individuals work full and part-time in our game as employees and/or contractors at different levels (i.e. club, academy, league, district, etc.). We understand that the current situation may bring heightened concerns for those individuals. 

Over the last couple of days, more detailed information has been shared by the federal government regarding the 75% Canada Emergency Wage Subsidy Program. To help support our members and affiliated clubs (the employers), we have pulled together the below information as it may help you with your decision making while managing your soccer organization during this uncertain time.


Importantly we have used our best efforts to summarize the information which we are sharing (below) for information purposes. We suggest you review the information provided in the link to ensure you have the most current details on the program.


The Canada Emergency Wage Subsidy Program - https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html

Note – We understand the program still requires approval from Parliament and the date of this is currently not know.

Objective
The program’s main objective is to support employers by providing them with 75% of salary up to $58,700 per year (up to $847 per week), per employee to keep them fully employed between March 2020 and May 2020 if the organization meets the eligibility criteria. It’s designed to essentially provide the workforce with confidence, to promote continuity of wages, and encourage rehiring.

Eligibility
The program is available to non-publicly funded businesses, non-profits, and charities. Publicly funded bodies are not eligible and are defined as municipalities and local governments, Crown corporations, public universities, colleges, schools, and hospitals. Therefore, most organizations within Soccer’s membership should be eligible.

Timeframe
If eligible, the program is available for up to three months retroactive to March 15, 2020, and organizations must apply monthly. Below is the information shared on the federal website.

Eligible Periods                Claiming period                Reference period for eligibility
Period 1                           March 15 – April 11          March 2020 over March 2019
Period 2                           April 12 – May 9               April 2020 over April 2019
Period 3                           May 10 – June 6               May 2020 over May 2019

A decrease in Gross Revenue
Organizations must (generally) compare revenues to the same month from last year (March 2019 to March 2020, April 2019 to April 2020, and May 2019 to May 2020) and demonstrate a 30% decline in “gross” revenues for each month. From what we understand there will be some flexibility in this approach (i.e. if it can’t compare to last year, for example, start-ups). However, if the flexible approach is attempted, it is important to demonstrate that point of comparison for the 30% drop is reasonable, examples given are a prior month or another comparable month (i.e. likely all about finding a reasonable point of reference).

Application Process
We understand that:

  • the application will be done through a CRA Portal (via MY CRA and/or separate web-based platform) and they are still currently developing the application and questionnaire to support the process,
  • the portal should be set up in next three to six weeks,
  • any payments will likely take a further few weeks after application approval and will likely be provided by direct deposit into the organization’s bank account,
  • employers will have to reapply monthly, and 
  • it is important to note that employers will have to attest that they are doing everything they can to pay the remaining 25% of employee’s wages which will presumably be by formal attestation.

Caveats

  • We understand that cash flow may be taken into consideration. However, it is not clear. 
  • The government has stated that the overall process being put in place is a “High Trust” one and they will take “decisive action for bad actors” for breaking any trust. 
  • Organizations must work towards reasonable due diligence and document retention.

10% Wage Subsidy - https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

On March 18, 2020, the Prime Minister announced a temporary 10 per cent wage subsidy.

Members and affiliated clubs should know that, based on our understanding, you can apply for both the 10% Wage Subsidy announced on March 18, 2020 and the 30% Canada Emergency Wage Subsidy Program outlined above.  

For employers that are eligible for both programs, any benefit from the 10 per cent wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period. It is important to note the condition of keeping people employed (and paid).

Therefore, it is suggested in order to assist with any immediate cash-flow needs, members and affiliated clubs may wish to apply for the 10% wage subsidy immediately until you are able to determine if you are eligible for the 30% wage subsidy. If you are not eligible for the 30% Canada Emergency Wage Subsidy Program, you still qualify for the 10% Wage Subsidy.


BC Soccer Support - As you work through this information, if you have any questions please feel free to contact Stephen Wurz, BC Soccer Director of Finance at stephenwurz@bcsoccer.net.

Should you have any other questions that you feel BC Soccer can support you with, please note that staff are available and can be contacted primarily via e-mail in the first instance.

CLICK HERE to view all the memos and informaiton BC Soccer has shared regarding the COVID-19 crisis.


About BC Soccer

BC Soccer is the provincial sport governing body with the mission to govern, promote and develop the game of soccer in British Columbia in a professional and progressive manner. Established in 1907, BC Soccer is the largest provincial sports organization (PSO) in BC and the third largest soccer-specific PSO in Canada with over 150,000 participants.  As a professional not-for-profit society and a member of Canada Soccer, BC Soccer is committed to providing the widest opportunities for existing and potential participants, as well as provide support in the most effective and appropriate way for current players, parents, volunteers, member clubs, leagues, and districts.

BC Soccer is comprised of more than 120,000 registered players, over 2,200 registered referees, and thousands of volunteer coaches, administrators, and soccer leaders. Working with its 40 member Youth Districts and 11 Adult Leagues as well as their affiliate member clubs, BC Soccer operates under the guiding principles of Professional Leadership, Passionate Service and Progressive Collaboration. In managing its relationships throughout the larger soccer community, BC Soccer’s vision is to ensure every British Columbian has the opportunity to be involved in soccer as part of a lifelong commitment to an active, healthy and involved lifestyle.