You want my idea for the wage subsidy… well here it is.
WARNING: It is so simple to implement, there is no way a government would do it.
COVID-19
Keep It Simple S…ubsidy
People have said “you are quick to pick apart the wage subsidy, so what is your solution?”
So… you asked for it… here it is:
I’ve said it from the very beginning that it should resemble EI support. All they should be doing is simple.
(No this is not an April Fool’s joke… but I am hoping the Press Conference on April 1, 2020 by the Minister of Finance was)
I was fine with EI amounts… but since we have the Canadian Emergency Response Benefit (CERB)… let’s use that amount to keep it more simple.
The amount is this:
(just like the CERB). $2,000 per worker per month, taxable, and no withholdings up front
Put a ‘clawback’ amount on those that are getting it like the clawback on Old Age Security or regular EI benefits for when they file income tax next year.
The 3-prong approach to the subsidy
Prong 1 – CERB from Service Canada
Everyone should get it. Yes, everyone.
However, anyone that makes more than the EI maximum in 2020 must pay back 30 cents of the CERB on every dollar over the $54,200 EI maximum threshold when they file their 2020 taxes.
So when you file your personal 2020 income tax, if you ended up making more than $80,667 in income, you will have had to pay back the full $8,000 of CERB received on a T4E.
This results in helping everyone today, help jump start the economy when we need to and have those that get back on their feet quicker, paying some or all of it back.
If you received both the CERB from Service Canada, and the CERB through your employer, you have to pay back the amount greater than the $8,000 received, and then any other amount based on the formula above.
This will prevent or reduce the double dip.
Prong 2 – CERB through the Small Business employer
The small business (less than $15M in assets of all associated corporations) employer would also get the CERB on a per-employee basis. They already have to fill out the number of employees when they file their remittance forms, so what’s the difference?
This $2,000 flows through to subsidize the wages, and must be paid to the employees. You create a different box number to track it on the T4 slips next year for audit purposes and to make sure the employee got the money.
I know this isn’t 75%, but the 75% was a capped amount anyways. That’s why I said keep it simple.
In order to incentivize the small business employer so they don’t lay them off, treat it as a flow through, and non-taxable to the employer.
So if there are five employees at the small business, the employer will get $10,000 of CERB to flow through to the employees.
The employee’s wages will be subsidized by the $2,000 amount, and they will put the $2,000 in a different box on each T4 slip for tracking purposes.
In order to incentivize the employer to act as the flow-through for Service Canada, this $2,000 will not be subject to EI or CPP by the employer and will not be included in the taxable income of the employer.
This allows the employer to claim the full wage deduction, have subsidized payroll costs, and save the income tax amount by deducting the full payroll.
By not counting it as income, this tax and remittance savings can be viewed liked an “admin fee” for acting on Service Canada’s behalf.
On $10,000 (5 employees) this would save up to $252 in Employer EI, $525 in Employer CPP, and $900 in federal income tax.
Cost to government for employer being the administrator instead of Service Canada: $1,167.
Incentive for employer to NOT lay off the staff, $10,000 in wage costs… and $1,167 in tax savings.
Prong 3 – CERB through Large Corporations
If the employer is getting the CERB on a per-employee basis and they are a large (greater than $15M in assets) corporation or associated group, allow them to not pay employer EI or CPP on the CERB.
100 employees = $200,000 = up to $5,040 in reduced EI, and $10,500 in reduced CPP remittances as the incentive.
So the employer gets $2,000 per employee as a subsidy to cover wage costs, and does not have to do payroll withholdings on the amount, saving them a total of $200,000 + 5,040 + 10,500 = $215,540.
Or put another way, they can save $15,540 by not laying them off.
If that’s not enough incentive, then perhaps look at it being only 50% taxable, which in the example above, would reduce Federal income tax by $15,000 (using 15% general rate x 50% x $200,000)
Audit Tracing
By simplifying the process, there is less ability for abuse.
Service Canada will issue everyone a T4E with the CERB they personally received from them (no application necessary).
T4 box numbers can be reconciled by CRA on slip filing to amounts of CERB received by the employer through the PIER system.
Those same boxes can be reconciled to specific individuals on tax filings to see if there were any that should repay.
Amounts greater than $8,000 received by anyone will need to be repaid.
Those with income over the EI Maximum amount, will have to repay some or all of the CERB back when they file.
If you don’t agree… well… the specific repayment formula can be figured out later… we have a year for that. We need the money in the public’s hands now though.
In Conclusion
These incentives and recapture mechanisms will reduce the likelihood of layoffs in low-margin industries like hospitality since $2,000 a month goes a long way to covering those wages; it will “Flatten the EI Curve” (trademark pending – not really… but I like saying it)
It would get everyone back working quicker after this is done by maintaining the connection to employers, and get the economy kick-started with cash injections at the front of this thing, rather than the end.
In the end… you have employers flowing the $2,000 through to the employee on Service Canada’s behalf as a no-withholding amount and a nominal cost to the employer to administer it, rather than Service Canada processing hundreds of thousands (if not millions) of individual applications.
If they are a small business, they actually get a tax savings by being the administrator and helping Service Canada in the process.
If they are a large business, they can have a good chunk of payroll costs reduced by not having to pay EI and CPP on the amount, and perhaps tax savings.
In the end, every worker gets $8,000 over 4 months just to buy everyone time and we have Flattened the EI Curve.™
Biography of Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr can be found here.
COVID-19
Canadian government seeking to destroy Freedom Convoy leader, taking Big Red from Chris Barber
From LifeSiteNews
The Crown claimed that ‘Big Red’ is an ‘offence-related property’ relating to Chris Barber’s involvement in the 2022 protests against Canada’s COVID mandates.
The Canadian government is still going after Freedom Convoy leader Chris Barber, this time hoping to seize his very livelihood.
The Justice Centre for Constitutional Freedoms (JCCF) has reported that it represented Barber during a November 26 hearing about the Crown’s attempt to take “Big Red,” Barber’s semi-truck. The Crown claimed that the vehicle is an “offence-related property” relating to Barber’s involvement in the 2022 protests against Canada’s COVID mandates.
Barber’s truck, a 2004 Kenworth long-haul, which he uses for business, was a focal point in the 2022 protests. He drove it to Ottawa, where it was parked for an extended period of time, but he complied when officials asked him to move it.
Barber’s lawyer, Diane Magas, said the Crown’s attempt to take away Barber’s livelihood is “not” in the spirit of laws in place regarding forfeiture.
“The impact of the forfeiture of ‘Big Red’, which is an essential part of the operation of Mr. Barber’s trucking business and is relied upon by Mr. Barber, his family, as well as employees, is not what Parliament had in mind when enacting those forfeiture provisions,” she said as per a JCCF press release.
“Especially considering the context of a political protest where the police told Mr. Barber where to park the truck and when Mr. Barber moved the truck after being asked to move it.”
The Freedom Convoy leader has talked about his truck, saying that, “Big Red is how I put food on the table.”
“I followed every instruction police gave me during the protest, and I never imagined the government would try to take the very truck I rely on to earn a living,” Barber continued.
A ruling regarding the Crown’s wish to seize Barber’s truck is expected to appear on December 19; however, the court case could drag into the new year.
RELATED: Freedom Convoy organizers sentenced to 18-month house arrest for role in protests
On October 7, 2025, after a long trial, Ontario Court Justice Heather Perkins-McVey sentenced Tamara Lich and Barber to 18 months’ house arrest. They had been declared guilty of mischief for their roles as leaders of the 2022 protest against COVID mandates, and as social media influencers.
Lich and Barber have filed appeals of their own against their house arrest sentences, arguing that the trial judge did not correctly apply the law on their mischief charges.
Government lawyers for the Crown have filed an appeal of the acquittals of Lich and Barber on intimidation charges.
Lich and Barber were declared guilty of mischief for their roles as leaders of the protest against COVID mandates in April 2022, and as social media influencers. The conviction came after a nearly two-year trial despite the non-violent nature of the popular movement.
COVID-19
Crown seeks to punish peaceful protestor Chris Barber by confiscating his family work truck “Big Red”
The Justice Centre for Constitutional Freedoms announces that the Ontario Court of Justice will hold a hearing at 10:00 a.m. ET on Wednesday, November 26 at 161 Elgin Street, Ottawa, regarding the Crown’s attempt to permanently seize “Big Red,” the 2004 Kenworth long-haul truck relied upon by peaceful Freedom Convoy protestor Chris Barber and his family trucking business.
Constitutional lawyer Diane Magas, who represents Mr. Barber, is opposing the forfeiture.
“The impact of the forfeiture of ‘Big Red’, which is an essential part of the operation of Mr. Barber’s trucking business and is relied upon by Mr. Barber, his family as well as employees, is not what Parliament had in mind when enacting those forfeiture provisions, especially considering the context of a political protest where the police told Mr. Barber where to park the truck and when Mr. Barber moved the truck after being asked to move it,” she said.
Mr. Barber, a Saskatchewan trucker and central figure in the peaceful 2022 Freedom Convoy, depends on this vehicle for his livelihood. The Crown alleges that his truck constitutes “offence-related property.”
The November 26 hearing will address the Crown’s application to seize the truck and will include evidence regarding ownership and corporate title. The Court will also consider an application filed earlier this year by Mr. Barber’s family, who are asserting their rights as interested third parties and seeking to prevent the loss of the vehicle.
Mr. Barber was found guilty of mischief and counselling others to breach a court order following the peaceful Freedom Convoy protest, despite his consistent cooperation with law enforcement and reliance on legal advice during the events of early 2022. At sentencing, the Court acknowledged that he “came with the noblest of intent and did not advocate for violence,” emphasizing that Mr. Barber encouraged calm and compliance.
Mr. Barber said, “‘Big Red’ is how I put food on the table. I followed every instruction police gave me during the protest, and I never imagined the government would try to take the very truck I rely on to earn a living.”
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