Originally Posted by
JBord
So the program basically subsidized payroll for restaurant owners in order to keep staff employed. Do I understand that correctly? Did it allow employers to decrease or stop payroll for people getting the $750? If not, I don't see the incentive for employers.
Yes, that's correct. It wasn't just hospitality it was any business that could reasonably have assumed a 30% decrease in revenue back in March last year because of the pandemic. The employer received the money and passed it through to the employee. Even if an employee only worked a couple of shifts a week they received the $750, so the second order affect was it was also economic stimulus beyond keeping people employed. It was adjusted back in September as things got back to normal, and then ended in March. Look at the UK's unemployment rate, if the government wasn't subsidising wages it would be sky high. The latest figures were 1.7m (4.9%) people unemployed, but 4.7m on the UK's job retention scheme.
Here a lot of retailers that used the program but ended up having boom conditions have paid the money back to the government.