COVID-19 Update: New T4 reporting requirements for employers. In order to maintain public confidence in the integrity of Canada’s tax and benefit system, the CRA has a number of verification measures to ensure that individuals are eligible for the benefits they are receiving. VIEW PDF HERE.
For the 2020 tax year, the Canada Revenue Agency (CRA) will be introducing additional reporting for the T4 slip, Statement of Remuneration Paid.
These 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).
We are communicating these requirements now to give employers enough time to prepare for next tax-filing season.
How to report employment income during COVID-19 pay periods
For the tax year 2020, in addition to reporting employment income in Box 14 or Code 71, use new other information codes when reporting employment income and retroactive payments in the following 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
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.
For more information about T4 reporting requirements, go to Information for employers: CRA and COVID-19.
CERB and CESB repayments
Any payments that the CRA finds to have been made to an individual who is later deemed to be ineligible will need to be returned, and we will contact these individuals to make arrangements for repayment.
Resources for COVID-19 fiscal measures and benefits
Changes to taxes and benefits: CRA and COVID-19
