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.
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