The Government’s COVID-19 relief programs have led to the Canada Revenue Agency (CRA) introducing additional reporting for the 2020 T4 slip, Statement of Remuneration Paid. All employers who issue T4s to employees must comply with these new requirements. CRA will use the additional information to be reported on the T4 to validate payments under the Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), and payments made to employers under the Canada Emergency Wage Subsidy (CEWS).
New T4 Codes for the 2020 T4 Slip
For the 2020 taxation year, in addition to reporting employment income in Box 14 or Code 71, the information codes below, which align with the defined eligibility periods for the CEWS, CERB, and CESB payments, will need to be completed to report employment income and retroactive payments in the following periods:
- Code 57: Employment income – March 15 to May 9;
- Code 58: Employment income – May 10 to July 4;
- Code 59: Employment income – July 5 to August 29;
- Code 60: Employment income – August 30 to September 26.
Selecting the Correct T4 Code for the 2020 T4 Slip
It is important to note that each period above reports the day the employees were paid, not the period of work the payment covered.
For example, if an employee is paid on May 14, 2020, for working April 25 to May 8, 2020, the employer would report these earnings in Code 58 as the payment date of May 14 falls within the Code 58 period of May 10 to July 4.
It will be essential to ensure you collect and adequately report the necessary information to comply with these new reporting requirements.
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