Posted on January 6th, 2021 in Domestic Tax, General Business, Human Resources Advisory

New 2020 T4 Reporting Requirements

Attention stamp

The CRA requires that all Canadian employers must report certain income amounts on their 2020 T4 slips, “Statement of Remuneration Paid”, using new information codes that correlate to defined periods due to the COVID-19 government relief initiatives.

The additional information required is intended to validate payments made to individuals or businesses under the following relief benefit programs:

  • Canada Emergency Response Benefit (CERB)
  • Canada Emergency Student Benefit (CESB)
  • Canada Emergency Wage Subsidy (CEWS)

This new reporting requirement applies to all employees regardless of whether the above programs were utilized.

The new T4 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

IMPORTANT: The periods above pertain to the date the employee was paid and not the period of work the payment covered. For example, if you are reporting employment income for the period of April 25 to May 8, payable on May 14, the information would be reported under Code 58.

For assistance with any of the available subsidies, please contact a member of our Government Relief Team.

More articles related to COVID-19: Business Resource Centre