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COVID-19

Keep It Simple S…ubsidy

Published

5 years ago

9 minute read

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.

(Originally posted on LinkedIn (no joke) April 1, 2020)

 

 

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.

#RedDeerStrong – If you’re struggling and you need to consolidate debt through a mortgage refinance, Kristen is here for you.

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CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://CGLtax.ca/Litzenberger-Cory.html

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COVID-19

New York City workers fired for refusing COVID jab ask Trump, Vance, RFK Jr. to reinstate them

Published on December 2, 2024

By

From LifeSiteNews

By Doug Mainwaring

Their letter ‘brings attention to the fact that Mayor Eric Adams is the number one obstacle preventing unvaccinated workers from being brought back to their jobs and getting compensated.’

A group of former New York City workers representing thousands who were fired or displaced from their jobs for  declining the city’s unconstitutionally mandated COVID-19 vaccine based on religious or medical grounds sent a letter to President-elect Donald Trump, Vice President-elect J.D. Vance, and Health and Human Services Secretary nominee Robert F. Kennedy Jr., asking for help with being reinstated to their jobs.

“The letter (included below) draws attention to the plight they have been fighting for more than three years in the courts, in the streets, and in City Hall trying to get back to doing what they do best — working for the City of New York,” explained Michael Kane, writing at the Teachers for Choice Substack.

“Firefighters, cops, teachers, sanitation workers, medical professionals and more have asked the incoming presidential administration for help getting back to their employment,” Kane wrote. “The letter brings attention to the fact that Mayor Eric Adams is the number one obstacle preventing unvaccinated workers from being brought back to their jobs and getting compensated.”

****

Dear President-Elect Trump and Vice President-Elect Vance,

In the Fall of 2021, thousands of well-performing New York City employees, including but not limited to firefighters, police officers, teachers, social workers, sanitation workers, medical doctors, nurses, plumbers and doormen were unlawfully placed on leave without pay and subsequently terminated by the duplicitous leaders of New York City for non-compliance with the unconstitutional COVID-19 vaccine mandate.

Many City workers had to choose under duress to take the shot in order to keep making a living. Others were coerced into early retirement, waiving their labor rights or resigning. This mass reduction in the City’s workforce has caused a critical staff shortage. Former Mayor Bill de Blasio, his then Health Commissioner Dave Chokshi, Mayoral Expert Advisor Jay Varma, Mayor Eric Adams and his then Health Commissioner Ashwin Vasan are only some of the political leaders and health bureaucrats who violated our constitutional and labor rights. The two former NYC Department of Education (DOE) Chancellors, Meisha Porter and David Banks, embraced the vaccine mandate and cooperated in removing DOE employees, as did the UFT President Michael Mulgrew and AFT President Randi Weingarten. Much has changed in the past three years, and there are many revelations now that we were lied to about almost every aspect of the COVID-19 vaccine.

Thousands of unvaccinated workers nationwide have gone through hell due to the COVID-19 vaccine mandates. For the past three years, New York City workers had our wages illegally seized, which has led to the loss of income, loss of property, loss of medical insurance, poverty, humiliation, emotional distress and family discord. Many of us have gone from having a good income with a plan for retirement to meet our basic needs and secure our family well-being, to living hand to mouth, losing our homes and other assets, having to move in with family, and even move to other states and countries. Some of us were foreclosed upon. Some ended up in the shelter and welfare systems. At least one committed suicide.

The morale and mental health of all City workers, both public and private sectors, have been dealt a severe blow by the vaccine mandate firings. Many City workers have taken legal actions against the City of New York and other parties involved in the hope of correcting the irreparable harm. Some courts and juries have rendered decisions in favor of the unvaccinated workers, but relief has not been awarded because the City of New York and Mayor Eric Adams keep appealing the decisions at the taxpayers’ expense, which is a reckless use of public funds.

According to available records, in 2023, Mayor Adams hired 30 additional attorneys at a taxpayer cost of $5,000,000.00 a year, just to keep up with the lawsuits filed by the fired employees who tirelessly worked during the COVID-19 pandemic, without vaccines and PPE. His actions are beyond outrageous and disheartening.

Based on Court decisions rendered in Michigan, California, Illinois and Colorado, New York seems to be the only state that has not awarded relief to the unlawfully terminated workers. Despite all the cruelty and financial hardship unvaccinated workers are faced with, we are standing firm in our pursuit of justice. We know that you are committed to uphold the Constitution as it pertains to life, liberty and the pursuit of happiness for We The People.

Therefore, we respectfully ask that you please help City workers, members of the military and all other citizens who were unlawfully forced out and fired as a result of the vaccine mandate.

Sincerely,

****

The 250+ signatories of the letter, who have thousands of years of service to the city between them, have come together under the umbrella of “NY Workers for Choice,” representing Bravest for Choice, Teachers for Choice, Finest Unfiltered,  Court Workers for Choice, Cops 4 Freedom, Educators for Freedom, Strongest for Freedom and Medical Professionals for Informed Consent.

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COVID-19

Ontario healthcare workers file $170 million class action over COVID mandates

Published on November 28, 2024

By

From LifeSiteNews

By Anthony Murdoch

A group of healthcare workers in Ontario who say their rights were infringed after refusing to go along with COVID workplace jab mandates have launched a $170 million class-action lawsuit against the province’s government and chief medical health officer.  

The lawsuit was brought forth by the United Health Care Workers of Ontario (UHCWO) and challenges an order made in 2021 by Ontario’s Medical Officer of Health Dr. Kieran Moore that mandated all hospitals in the province implement healthcare worker COVID jab mandates.  

“We were witness to vast numbers of dedicated healthcare workers having their livelihoods and careers abruptly taken away, simply for making a personal medical choice,” said the UHCWO in a media statement.  

Moore’s mandate, known as Directive 6, went into effect on September 7, 2021. The class action looks to help the unionized healthcare workers impacted by the directive who say their freedoms were violated by the rule. 

“Other health-care workers were coerced into a medical treatment with the threat of being terminated, which stripped away the element of informed consent. Others were denied both medical and religious exemptions to this medical treatment,” said the union.  

The court proceedings will be taking place in the Ontario Superior Court of Justice, which must certify the lawsuit before it can officially proceed. The class-action is open to all unionized Ontario healthcare workers who were impacted by Moore’s directive.  

According to the UHCWO, the broadness of the class-action has the potential to include “thousands or tens of thousands of health care workers across Ontario.” 

“It includes unionized healthcare workers that were fully vaccinated, partially vaccinated, or unvaccinated. It includes unionized workers that remained employed, were placed on leave, terminated, resigned, or took early retirement due to the issuance of Directive 6,” says the group. 

The UHCWO group has retained Sheikh Law to represent the plaintiffs in the suit, as well as any potential class action members. 

Draconian COVID mandates, including those surrounding the experimental mRNA vaccines, were imposed by the provincial Progressive Conservative government of Ontario under Premier Doug Ford and the federal Liberal government of Prime Minister Justin Trudeau. 

Many recent rulings have gone in favor of those who chose to not to get the shots and were fired as a result, such as an arbitrator ruling that one of the nation’s leading hospitals in Ontario must compensate 82 healthcare workers terminated after refusing to get the jabs. 

The mRNA shots have been linked to a multitude of negative and often severe side effects in children. The jabs also have  connections to cell lines derived from aborted babies. As a result, many Catholics and other Christians refused to take them. 

Lawsuit argues ‘adverse events’ associated with COVID jabs were ‘either recklessly or willfully ignored’ 

In total, the damages being sought by the plaintiffs are broken down into four parts, those being $50 million for pain and suffering, $50 million for misfeasance in public office, $20 million for tortious inducement to breach contract, and another $50 million in punitive damages. The suit also looks to have the plaintiffs compensated for legal costs as well as lost income. 

The main plaintiff in the lawsuit is Ontario nurse Lisa Wolfs and according to the UHCWO, it is looking to get enough funding before officially initiating the certification process. If this part fails, she will be on the hook for all costs. 

Wolfs worked as a clinical nurse educator at London, Ontario health centre, and is contending that the COVID jab mandates made it so that there were unauthorized modifications made to her employment contract. These modifications made it so that she had to reveal her personal medical information.  

According to the lawsuit, she was dismissed after 16 years despite having a stellar work record. Wolfs has argued that her termination was a violation of her contract, which did not mandate she have a jab as a condition of work. 

“Known and unknown potential risk of adverse events associated with the COVID-19 vaccination were either recklessly or willfully ignored,” reads the lawsuit. 

“There was no long-term safety data available to the Chief Medical Officer of Health when enacting and enforcing the Order on mandatory vaccinations and as such the Order created a foreseeable and unreasonable risk of harm to the Plaintiff and Class Members.” 

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