New T4 Reporting Requirements

For the 2020 tax year, additional information will need to be reported on T4 slips, “Statement of Remuneration Paid”. Employers will be required to report an employee’s income and retroactive payments paid during specified time periods; this is in addition to reporting an employee’s income on Box 14.

The purpose of the added reporting requirement is to validate payments made to individuals who have received payments from the Canada Emergency Response Benefit (“CERB”), Canada Emergency Student Benefit (“CESB”), and the Canada Emergency Wage Subsidy (“CEWS”).

Reporting Requirements

The 2020 T4 slip will have new information codes for employers to report employment income paid during specified time periods. These codes and related time periods are as follows:  

  • 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

As an example, if an employer is reporting employment income earned during the period of May 6 to May 19 and the income is paid on May 31, the employer will report the income using code 58.

Please contact us if you have any questions.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.