Canada – Additional T4 Reporting Requirements According to CRA

Canada–CRA Adds T4 Reporting Reqs

Information related to payments under the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB) programs, as well as payments made to employers under the Canada Emergency Wage Subsidy (CEWS), must be reported on the T4 using new information codes.

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The Canada Revenue Agency (CRA) has announced that all Canadian employers must report certain employment payments related to COVID-19 on the 2020 T4 slip, "Statement of Remuneration Paid,” using new information codes that correlate to defined periods.1  According to the CRA, this additional information is intended to validate payments made to individuals under the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB) programs, as well as payments made to employers under the Canada Emergency Wage Subsidy (CEWS).

WHY THIS MATTERS

Employers and payroll administrators will have to adjust their procedures and policies to comply with this new requirement, which could add additional time and administrative burden to their information collecting and reporting obligations.

T4 and New Information Codes

The T4's new information codes for reporting employment income and retroactive payments to employees relate to the following time 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.

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.

KPMG NOTE

These new reporting requirements are in addition to the existing requirement to report employment income in Box 14, "Employment Income" or Code 71, "Indian (exempt income) – Employment."

RELATED RESOURCE

This article is excerpted from “New 2020 T4 Reporting Requirements” (September 1, 2020), in TaxNewsNOW, an online publication of the KPMG International member firm in Canada.

The information contained in this newsletter was submitted by the KPMG International member firm in Canada.

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GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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