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Attention all employers/employees:

Changes in T4 reporting requirements for 2020

As a result of the various COVID 19 pandemic related benefits the Federal government has provided, the Canadian Revenue Agency (CRA)  will be requiring Canadian employers to provide additional information on T4 slips for the 2020 tax year.

CRA is looking to validate payments under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB).

For tax year 2020 CRA states “that all Canadian employers will be required to report employment and retroactive payments on the T4 Statement of Remuneration Paid slip for the defined periods under new information codes”.  In addition to the normal reporting of employment income in Box 14 or Code 71 the new defined reporting codes are:

  • 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

Each of these codes aligns with reporting periods for Covid 19 benefit eligibility for CEWS, CERB, and CESB. CRA will be taking the information reported on the T4 for 2020 and comparing it with the benefits that an individual has applied for and received under CEWS, CERB, and CESB.   

These codes pertain to the day the employee was paid and not necessarily the work the payment covered.  For example, if an employer is reporting employment income for the period April 25 to May 8 and the employee was paid on May 14 that information would be reported under Code 58.

The accuracy of information reported on T4 slips for 2020 is paramount therefore given the complexity of the new reporting requirements it may be beneficial to seek the advice of tax specialist.

Article courtesy of Margaret DeMerchant, CPA, CMA, MBA

President of DeMerchant & Dutrisac Chartered Professional Accountants

260 Centrum Blvd Suite 202

613-424-1500

[email protected]