- 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.
- 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.
- 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.
