New T4 Reporting Requirements
The Canada Revenue Agency is introducing additional reporting for the T4 – Statement of Remuneration Paid for the 2020 tax year. The additional reporting requirements apply to all employers in an effort to help the CRA validate payments under the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB).
For the tax year 2020, in addition to reporting employment income in Box 14 or Code 71, you will need to use new other information codes when reporting 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
Eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period. The new requirement means employers are to report income and any retroactive payments made during these periods. As an example, to report employment income in the period April 25 to May 8 that is payable on May 14 use code 58.
I expect major payroll service providers will complete the required programming to accommodate these changes with in their systems. For all of our payroll customers we will ensure your T4’s are reported correctly. If you complete T4’s on your own and need some assistance, we are happy to work with you.
Greg Libbrecht and the team at Platinum Business Services