New T4 Reporting For 2020
The Canada Revenue Agency is requiring employers to provide additional information on T4 slips for the 2020 tax year. All employers must report certain employment payments paid to employees during COVID-19 on the 2020 T4 slip, "Statement of Remuneration Paid", using new information codes that correlate to defined periods. These new reporting requirements are intended to help CRA validate pandemic related benefit payments made to individuals under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB) programs.
The T4's will have new information codes for reporting employment income and retroactive payments to employees in the following time periods:
• Code 57: Employment Income – March 15 to May 9
• Code 58: Employment Income – May 10 July 4
• Code 59: Employment Income – July 5 to August 29
• Code 60: Employment Income – August 30 to September 26
Each period, which aligns with periods relating to COVID-19 benefit eligibility, pertains to the day the employee was paid and not necessarily the period of work the payment covered. For example, if an employer is reporting employment income for the period of April 25 to May 8, payable on May 14, that information would be reported under Code 58.
The new reporting requirements are in addition to the existing requirement to report employment income in Box 14, or Code 71.
For more information or assistance with T4 preparation please contact Karen Zakem at 902-368-2643 or firstname.lastname@example.org
282 views0 comments