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Canada: Guidance for reporting employment-related payments (COVID-19)

Canada: Reporting employment-related payments

The Canada Revenue Agency (CRA) announced that all Canadian employers must report certain employment-related payments made in response to the coronavirus (COVID-19) pandemic on the 2020 T4 slip, "Statement of Remuneration Paid" using new information codes that correlate to defined periods.

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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).

The new information codes on T4 for reporting employment income and retroactive payments to employees relate to the following time periods during 2020:

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

Each period (that 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 25 April to 8 May, and payable on 14 May, that information would be reported under Code 58.

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.”

Read a September 2020 report prepared by the KPMG member firm in Canada

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