Tax Measures Under Canada’s COVID-19 Economic Response Plan

Employers who can benefit from the CEWS and maintain an establishment in Quebec will receive a credit on their contribution to the Health Services Fund[171] for a period of up to twelve weeks, retroactive to March 15, 2020. On May 29[172], 2020, Revenu Québec announced that it would be extending the credit until August 29, 2020. On August 17[173], 2020, Revenu Québec announced that it would be extending the credit until November 21, 2020. The amount of the credit is equal to the total amount of the employer’s contribution to the Health Services Fund in respect to wages paid to employees on paid leave due to COVID-19. The qualifying periods for the credit mirror the CEWS qualifying periods:

  • March 15, 2020, to April 11, 2020;
  • April 12, 2020, to May 9, 2020;
  • May 10, 2020, to June 6, 2020.

Employers must complete the Summary of Source Deductions and Employer Contributions (RLZ-1.S[174]-V and RLZ-1.ST[175]-V), for 2020, in order to claim the credit. As of May 1, 2020, an employer can reduce the amount of it’s periodic payment to Revenu Québec for its Health Services Fund contribution, which is attributable to a specified wage that it has paid, allocated, granted or awarded prior to the time of the periodic payment and which has not reduced another periodic payment. An employer may not amend a source deduction or employer contributions return filed before May 1, 2020, to take into account the credit for contributions to the health services fund.

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