Note: There is a change to your Advanced Payroll Experience. Click here to learn about the change and it's timing.
In response to the COVID-19 pandemic, the government introduced a Temporary Wage Subsidy program that will allow eligible employers to reduce the amount of payroll deductions required to remit to the CRA. QBO Advanced Payroll has now rolled out this functionality to support the automated calculation of the subsidy.
Keep in mind that we won’t be able to determine your eligibility for the program. To determine your eligibility we encourage you to consult the government’s FAQ or contact Canada Revenue Agency (CRA) directly.
We’ve added a new Eligible for the Temporary Wage Subsidy toggle to the Advanced Payroll Settings -> Company information tab.
The default setting for this toggle is No – this means that we won’t reduce your payroll deductions. Our system will continue to calculate and collect the full source deduction amount.
If you’re eligible, change the toggle setting to Yes – this means that we’ll apply the 10% subsidy to the total gross payroll and reduce the federal/provincial income tax payable to the CRA by that amount.
This reduced source deduction amount will be reflected in your Invoice report.
Note: Once our system has determined that an employee has reached their maximum allowance ($1,375), their calculations will be paused. Also, once the maximum allowance per employer ($25,000) has been reached, the toggle will be disabled.
We’ll be updating relevant payroll reports so that you can keep track of subsidy amounts for reporting purposes. As per CRA, we’re still waiting for legislation on how the subsidy will be handled from a reporting standpoint, and we are also now looking to implement the most recent changes once the details are released.