As the COVID-19 situation develops, we expect the Government of Canada to continuously provide updates and clarifications to their announced measures. Please note that many of the announced measures still require Royal Assent. The government parties are working together to provide these measures quickly, therefore we are expecting draft legislation in the near future. We will continue to monitor the releases and provide updates.
Individuals and Businesses
E-File Signatures: To help #flattenthecurve and reduce the requirement for in person interactions, effective immediately the CRA will recognize electronic signatures as having met the signature requirements of the Income Tax Act, as a temporary administrative measure.
Business Credit Availability Program (BCAP): The federal government announced the establishment of a Business Credit Availability Program (BCAP) to help Canadian businesses obtain financing during the current period of uncertainty. To seek support through BCAP contact your financial institution, if your business’ financial request exceeds the level your financial institution can provide, the financial institution will work alongside the Business Development Bank of Canada or Export Development Canada to access additional resources under BCAP. More information is available on the Department of Finance website.
Temporary Wage Subsidy: Your business is eligible for the subsidy if you meet the following criteria:
- Are eligible for the Small Business Deduction;
- Has a payroll account with the Canada Revenue Agency on March 18, 2020;
- Have had less than $15 million in taxable capital employed in Canada in 2019.
The subsidy is 10% of wages paid up to a maximum of $1,375 per employee and $25,000 per employer and is also available to family members of the controlling shareholders who are employees.
There is no formal application necessary. Calculate your subsidy and reduce your payroll tax by the same amount.
Non-profit organizations and registered charities are eligible for the subsidy as well.
Answers to frequently asked questions regarding the temporary wage subsidy program can be found on the Government of Canada website.
Payroll Taxes, GST/HST: No announcement has been made yet regarding changes to the filing requirements and payment due dates for payroll, GST/HST, and other non-income tax items. Please refer to the temporary wage subsidy which is effective immediately as to how you can potentially reduce your payroll tax burden.
Other Returns: No announcement has been made yet regarding the filing deadlines for Partnership Information Returns (T5013) and non-resident income and withholding tax (NR4) reporting slips
Record of Employment
A record of employment (ROE) provides information on employment history and is the single most important document used by employees to apply for Employment Insurance (EI) benefits. Service Canada uses the information to determine whether a person is eligible to receive EI benefits, what the benefit amount will be and for how long the benefits will apply.
As an employer, you are required to issue a ROE each time one of your employees experiences an interruption of earnings. Guidance to completing the ROE can be found on the Government of Canada website.
Record of Employment Filing Options
You can register for the Government of Canada ROE Web.
You must contact the Government of Canada Employer Contact Centre.Toll-free 1-800-367-5693
Hours of Operation 7:00 am to 8:00 pm (Eastern Time, Monday to Friday)
When you call, you will be asked to provide the following information:
- Your 15-character Payroll Account Number(PAN) issued by the Canada Revenue Agency (CRA). The PAN can be found on the CRA PD7A (Statement of account for current source deductions) form. If you do not have a PAN, you will have to request one from CRA.
- The name, address and telephone number of your business.
Quebec Tax Payments: Revenu Quebec has announced that they will align with the federal government with respect to corporate income taxes and installment deadlines with payments being suspended until September 1, 2020.
Quebec Partnership Returns: Revenu Quebec has announced that Partnership Information Returns due March 31, 2020, are now due May 1, 2020.
The Government of Canada will continue to provide updates to these programs. The following sites will keep you informed on these updates and provide more information as it becomes available.
Canada Revenue Agency
Export and Development Canada
Department of Finance
For more information on this topic, please contact your McCay Duff advisor.Contact Us