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Changes to SRED That Will Affect Your Claim

  1. Proxy Rate for overhead expenditures – current proxy rate of 65% of wages will be reduced to 60% beginning January 1, 2013 and will then be reduced to 55% effective January 1, 2014.Calculations will allow to Pro-rate the amount based on the number of calendar days in each of the years 2012 and 2013 and then 2013 to 2014 period as well.
  2. Sub Contractor expenditures allowed will also change – the current 100% expenditure allowance will be reduced to 80% effective January 1, 2013. Expenditures incurred prior to December 31, 2012 will be allowed at the 100% rate.
  3. Claim Form Changes – along with the above financial changes being introduced, the T661 claim form will also have some revisions. The New Form T661 E (12) will introduce:
    • Line 529 NEW – allows for reduction calculation to arrive at the new pro-rates contractor expenditures.
    • Line 820 NEW – allows for the 5 % reduction in proxy amount based on the number of 2013 calendar days.

If you would like more information regarding these please contact Asif Khan at (905) 633-6310.

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