New T4 Reporting Requirements

Effective for the 2020 tax year, the Canada Revenue Agency (CRA) has announced additional reporting requirements for T4 slips. These new reporting requirements apply to all employers.

This measure will help the CRA validate payments related to COVID-19 response programs including: the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB).

In addition to reporting employment income on the T4 in Box 14 (employment income) or Code 71 (Canadian Indian tax-exempt
income employment), the CRA has introduced four new codes to report employment income and retroactive payments. Each
period is aligned with COVID 19 benefit eligibility.

The Four New Codes for 2020 T4 Slips

Code 57: Employment income – from March 15 to May 9
Code 58: Employment income – from May 10 to July 4
Code 59: Employment income – from July 5 to August 29
Code 60: Employment income – from August 30 to September 26

What does this mean for employers?
The new requirement means all Canadian employers should report income and any retroactive payments made during these periods using these new codes.

How to Report
For example, if the employer is reporting employment income for the period of April 25 to May 8, payable on May 14, use Code 58.

More Information
Read more on the CRA website on this link.

Alex Powell, CPA CA

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