Wage subsidy reporting and CRA announcements
Reminders, tax changes and government announcements relating to COVID-19 financial relief measures:
Form PD27 – Temporary Wage Subsidy (TWS) Self-Identification Form for Employers:
All employers who claimed the TWS or CEWS must file form PD27 - Temporary Wage Subsidy Self-identification Form for Employers. CRA will use this form to reconcile the wage subsidies to the employer’s payroll account. If you have not yet claimed the TWS but are eligible to do so, the subsidy can be calculated and claimed on form PD27. It is strongly encouraged that this form be submitted prior to the March 1, 2021 filing deadline for T4 reporting to avoid receiving a discrepancy notice. If you require our assistance completing this form, please contact us as soon as possible.
Canada Emergency Response Benefit (CERB) Repayments for Self-Employed Individuals
Self-employed individuals were required to earn net self-employment income of at least $5,000 during 2019 or the 12 months prior to their application date in order to be eligible for CERB. In the early days of the program, inconsistent messaging was provided by CRA and many self-employed individuals applied for the program based on gross self-employment of at least $5,000 during these periods. CRA has announced that self-employed individuals whose net self-employment income was less than $5,000 but had gross self-employment income of at least $5,000 will not be required to repay CERB if they meet all other eligibility criteria. Any amounts that have voluntary been repaid prior to this announcement will be returned to you. Further details are expected soon.
Interest Relief on 2020 Income Tax Debts
The Government of Canada as well as the provincial governments provided many income support benefits throughout 2020. Many of these benefits are taxable on your income tax return but did not have income tax deducted at source. CRA has announced that interest will not be charged on any 2020 income tax debts owing until April 30, 2022 if taxable income per your income tax return is $75,000 or less and you received income support from any of the following programs: CERB, Canada Emergency Student Benefit (CESB), Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB), Canada Recovery Sickness Benefit (CRSB), Employment Insurance benefits or similar provincial emergency benefits. CRA will automatically apply the interest relief for eligible individuals.
Do not hesitate to contact us if you have any questions regarding how any of the above impacts you, your family, 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.