The Federal Government has releases new key tax and related changes as of Nov 30th 2020

Canada Emergency Wage Subsidy (CEWS) rate increased.

Due to the second wave of the pandemic, the government is proposing to increase the maximum CEWS rate to 75 per cent for the period beginning December 20, 2020, until March 13, 2021.

Update on form T2200 and home office expenses.

It was announced that “the CRA will allow employees working from home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from home, without the need to track detailed expenses, and will generally not request that people provide a signed [T2200] form from their employers.”

Canada Child Benefit payments for young children.

Benefits under the Canada Child Benefit will be increased for families with young children. An Additional $1,200 in child benefits for 2021. Families that qualify for the CCB and earn a net income of $120,000 or less will get the money in four tax-free payments of $300 each. That should add a surplus to your family’s budget, even as the economy gradually recovers next year.

Support Measures previously introduced

Canada Recovery Caregiving Benefit (CRCB).

The CRCB provides $500 per week for up to 26 weeks per household for workers:

  • unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19

  • because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19

Canada Recovery Sickness Benefit (CRSB)

The CRSB provides $500 per week for up to a maximum of two weeks, for workers who:

  • Are unable to work for at least 50% of the week because they contracted COVID-19

  • Are self-isolated for reasons related to COVID-19

  • have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19.

Canada Recovery Benefit (CRB)

The CRB provides $500 per week for up to 26 weeks for workers who have stopped working or had their income reduced by at least 50% due to COVID-19, and who are not eligible for Employment Insurance.

Employment Insurance (EI) program

Canadian Government made temporary changes to the Employment Insurance (EI) program to better support Canadians looking for work.

  • As of September 27, you may be eligible for EI if you:

  • were employed for at least 120 insurable hours in the past 52 weeks

  • received the CERB, the 52-week period to accumulate insured hours will be extended

  • stopped working through no fault of your own

  • have not quit your job voluntarily

  • are ready, willing and capable of working each day (EI regular benefits)

  • are temporarily unable to work while you care for someone else or yourself (EI maternity, parental, sickness, compassionate care, and family caregiver benefits)

TFSA Contribution limit was raised from $5,500 to $6,000 for 2019 and 2020

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