For the 2020 tax year, the Canada Revenue Agency (CRA) will be introducing additional reporting for the T4 slip, Statement of Remuneration Paid.
Additional reporting requirements will apply to all employers, and will help the CRA validate payments under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB).
Reporting the CEWS to the CRA with T4s.
In 2020, T4s will be an audit tool for the Canada Emergency Response Benefit (CERB) — the idea is to prove that any CERB recipients were eligible for the payments.
To help the CRA validate payments made under the CEWS, employers will need to report the subsidy amount with corresponding codes in the “Other information” section of the T4.
The four corresponding codes are:
- Code 57: Employment income – March 15 to May 9 — Periods 1 & 2
- Code 58: Employment income – May 10 to July 4 — Periods 3 & 4
- Code 59: Employment income – July 5 to August 29 — Periods 5 & 6
- Code 60: Employment income – August 30 to September 26 — Period 7
Eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period. The new requirement means employers should report income and any retroactive payments made during these periods.
Example
If you are reporting employment income for the period of April 25 to May 8, payable on May 14, use code 58.