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T2
556 Net income / Small business deduction / Revenu net / Déduction pour petite entreprise
  CO-771: Remunerated hours for the small business deduction for tax years that include days after March 14, 2020 and before June 30, 2020. |
| Program(s) affected: |
T2 |
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Document created: |
08 12, 2020 |
| Tax year(s): |
2020 |
Document last modified: |
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| Version(s): |
23.25, 23.30 |
Problem status: |
Pending |
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What is the impact of the adjustment made to exclude days after March 14, 2020 and before June 30, 2020 in the calculation of remunerated hours for the small business deduction?
In the Information Bulletin 2020-09 issued by Finances Quebec on June 29, an adjustment was made to exclude days after March 14, 2020 and before June 30, 2020 in the calculation of remunerated hours for the small business deduction. These changes will be incorporated in the next version of DT Max.
As a workaround, if the corporation does not have a short tax year, enter the result of the following calculations in the keyword Hours-Employees, with "Total number of hours paid for employees during tax year" selected.
Paid employee hours |
X |
365 |
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(Number of days in tax year – number of days in tax year after March 14 and before June 30, 2020) |
If the corporation had a short tax year, enter the result of the following calculations in the keyword Hours-Employees, with "Total number of hours paid for employees during tax year" selected.
Paid employee hours |
X |
Number of days in the tax year |
|
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(Number of days in tax year – number of days in tax year after March 14 and before June 30, 2020) Note 1 |
Note 1 If the result of the calculation of the excess of the number of days in the given year over the number of days in the closing period in the given year is equal to zero, it will be deemed to be equal to one
If the corporation is also a member of one or more partnerships, a similar calculation workaround must be made for the keyword Hours-Employees.re with "Total number of hours paid for employees during tax year" selected within the RelatedParty group.
The adjustment does not apply to the number of remunerated hours calculated for the preceding taxation year.
For more information please go to http://www.finances.gouv.qc.ca/documents/Bulletins/en/BULEN_2020-9-a-b.pdf
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