The CRA introduced additional T4 reporting requirements for the 2020 tax year that are applicable to all employers regardless if they applied for government assistance programs during the pandemic or not.

Employers are required to complete a form PD27 10% Temporary Wage Subsidy Self-identification Form for Employers

Payments including the Canada Emergency Response Benefit (CERB), the Canada Emergency Student Benefit (CESB) and the Canada Emergency Wage Subsidy (CEWS) are required.

Specialized codes used to report employment income and retroactive payments, these are the required codes for following pay 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

The CRA has provided examples on their website to assist in the accurate recording of payments.

The CRA also requires all employees who received CEWS but did not want to receive the 10% Temporary Wage Subsidy (TWS) to file a form PD27. By default, employers are deemed to have received the 10% TWS even if they did not reduce their payroll withholdings. Employers must file PD27 forms and elect a TWS rate of 0%.

Muia Consulting prides itself on keeping up to date on the CRA reporting requirements for the 2020 tax year. Programs and services were introduced rapidly during March & April and what the impact to employers and how information needed to be filed is just starting to be released.

For assistance with the changes to the reporting requirements for the 2020 tax year, contact our office at 647-493-0541 and one of our tax specialist will be happy to answer any questions.

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