Personal tax reminders and government program updates
Reminders and government announcements relating to COVID-19 financial relief measures.
Personal Tax Instalment
The first personal tax instalment for 2021 is due no later than March 15, 2021.
2020 Personal Tax Return Reminders
- There have been no extensions announced by the government for the 2020 filing or payment deadlines and we do not expect any to be announced at this time. Please provide us with your tax information no later than April 1, 2021 to ensure your return is filed on time to avoid late-filing penalties.
- If you worked from home during 2020, you are entitled to a simplified home office deduction of $2 per day up to a maximum of $400. If you worked from home sporadically throughout the year, please provide us with the total number of days so we can claim this amount on your return. If you worked from home for most of the year and incurred significant home office expenses, such as rent and office supplies, it may be more beneficial to use the detailed method to claim a percentage of the actual expenses paid.
- Most of the government benefits paid during 2020 are taxable on your income tax return. You should receive a T4A or T4E slip to report the payments received and taxes withheld at source, if any. Please provide these slips to us when received.
Canada Emergency Wage Subsidy (CEWS):
- CEWS is available on wages paid until June 30, 2021.
- The maximum subsidy rate for active employees remains at 75% for periods 14 to 16 (March 14 to June 5, 2021). The maximum weekly subsidy for furloughed employees remains at $595.
- Applications for the period from February 14 to March 13, 2021 will open on March 14, 2021.
- The deadlines to submit the wage subsidy applications for the prior periods are as follows:
- March 25, 2021 for August 30 – September 26, 2020;
- April 22, 2021 for September 27 – October 24, 2020;
- May 20, 2021 for October 25 – November 21, 2020;
- June 17, 2021 for November 22 – December 19, 2020;
- July 15, 2021 for December 20, 2020 – January 16, 2021; and
- August 12, 2021 for January 17, 2021 – February 13, 2021.
Canada Emergency Rent Subsidy (CERS):
- CERS is available on rent paid until June 30, 2021. The application periods and deadlines to submit are the same as the CEWS periods discussed above.
- The maximum subsidy rate remains at 65% for periods 14 to 16 (March 14 to June 5, 2021).
- Lockdown Support of 25% is available for eligible businesses on top of the CERS amount, increasing the total maximum rent support to 90%.
- Lockdown Support is available for eligible businesses that are required to shut down, or are significantly restricted, by a public health order. Applications are retroactive to September 27, 2020 and available until June 2021.
- On February 24, 2021, the government announced that Lockdown Support will now be available to eligible property owners who earn rental income from a related business that is shut down or significantly restricted due to a public health order. The property owner can claim a subsidy based on eligible expenses such as mortgage interest, property taxes and insurance.
Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), the Canada Recovery Caregiving Benefit (CRCB) and Employment Insurance (EI) regular benefits
On February 19, 2021, the government announced the following proposed changes to these programs:
- increase the number of weeks available under the Canada Recovery Benefit (CRB) and the Canada Recovery Caregiving Benefit (CRCB) by 12 weeks extending the maximum duration of the benefits through regulation from 26 weeks to up to 38 weeks;
- increase the number of weeks available under the Canada Recovery Sickness Benefit (CRSB) through regulation from the current 2 weeks to 4 weeks; and
- increase the number of weeks of EI regular benefits available by up to 24 weeks to a maximum of 50 weeks through legislation, for claims that are made between September 27, 2020 and September 25, 2021.
Do not hesitate to contact us if you have any questions regarding how any of the above impacts you, your family, or your Company. SRC LLP has a team designated to assist you in navigating the many programs available and completing all applications.
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.