COVID-19 September 30th Tax Deadlines and Other Updates

The September 30, 2020 deadline for filing and paying your 2019 individual tax returns, certain 2019 or 2020 corporation and trust returns and applicable instalment payments is quickly approaching.  See below for reminders as well as new updates to the Government of Canada’s COVID-19 financial relief measures.

Due Dates and Payment Deadlines:

  • Please be reminded that the payment due date for 2019 individual tax returns, 2019 or 2020 corporation and trust returns that were originally due between March 18 and September 30, 2020, as well as applicable instalment payments was extended to September 30, 2020. If you have not already paid your balance owing or instalments, please do so on or before September 30, 2020 to avoid interest and penalties.

Deadline for Canada Emergency Business Account (CEBA): 

  • The deadline to submit your CEBA application to your financial institution was extended to October 31, 2020

Repaying Amounts for the Canada Emergency Response Benefit (CERB): 

  • If you believe that you received a CERB payment in error, please contact CRA and follow the process in My Account for returning payments that you were not eligible for.
  • As CERB is taxable, you will receive a 2020 T4A slip to report payments received. All ineligible payments should be returned to CRA prior to December 31, 2020 to ensure they are not included on the T4A slip.

CRA Adds T4 Reporting Requirements to Validate COVID-19 Benefit Payments:

  • New codes are being added to the T4 for employers to report specific periods in which employees were paid.  The purpose of these new codes is so that employment income earned during each period can be compared against any benefit payments claimed by or in respect of employees for the same period.

Canada Emergency Wage Subsidy (CEWS) Extension:

  • On September 23, 2020, the Federal government announced another extension to CEWS until summer 2021.  More details have yet to be announced.  These calculations have become more complex with each additional period that passes.  If you require assistance in preparing the calculations and submissions for the wage subsidy, please reach out to us.

Temporary Wage Subsidy (TWS):

  • All employers eligible for the TWS are expected to file form PD27 - Temporary Wage Subsidy Self-identification Form for Employers.  CRA will use this form to reconcile the subsidy to the employer’s payroll account to ensure you don’t receive a discrepancy notice.  Although there is no stated due date, CRA is encouraging employers to complete this form by the end of 2020.  It can be submitted through My Business Account or mailed into CRA.  Please reach out to us for assistance in completing this form, if required.

Introduction of New Recovery Benefits to Extend Emergency Measures:

On September 24, 2020, the Federal government announced the introduction of Bill C-2, an Act relating to economic recovery response to COVID-19.  This Bill creates three new temporary recovery benefits to support Canadians who are unable to work due to reasons related to COVID-19:

  • The Canada Recovery Benefit (CRB) will provide $500 per week for a maximum of 26 weeks for workers who are self-employed or are not eligible for EI, and who still require income support.  The CRB would support Canadians who have not returned to work due to COVID-19 or whose income has dropped by at least 50%.  These workers must be available and looking for work, and must accept work where it is reasonable to do so. 
  • The Canada Recovery Sickness Benefit (CRSB) will provide $500 per week for up to two weeks for workers who are sick or must self-isolate due to COVID-19.
  • The Canada Recovery Caregiving Benefit (CRCB) will provide $500 per week for up to 26 weeks per household for eligible Canadians who have to stay home to care for children under the age of 12 or a family member due to school, daycares or care facilities being closed due to COVID-19, or because the child or family member is sick and/or required to quarantine.
  • Canadians will be able to apply for the CRB, CRSB and CRCB through CRA for one year up until September 25, 2021. 

Introduction of New Simplified Employment Insurance (“EI”) Program:

  • As announced on August 20, 2020, temporary measures to help Canadians access EI benefits more easily are effective September 27, 2020, for one year.  These changes will establish a minimum weekly benefit rate of $500 for new EI recipients, at the same level as the CRB.
  • You may be eligible for this new EI if you were employed for at least 120 insurable hours in the past 52 weeks.  If you received the CERB, the 52 week period to accumulate 120 insurable hours will be extended.

Electronic Signatures for Individuals and Corporations on T183s

  • CRA announced that it will extend its temporary administrative measure of recognizing electronic signatures for authorization pages to electronically file personal and corporate tax returns.  CRA is continuing to pursue regulatory approval to implement these measures permanently.

Do not hesitate to contact us if you have any questions regarding how any of the above impacts you or your company. 

NOTE:  Due to the rapidly evolving changes with respect to the Government’s Economic Response Plan to Covid-19, please understand that any posts written in the past may not be reflective of the current applicable obligations, rights and benefits of individuals and businesses.