For the 2020 tax year, the Canada Revenue Agency (CRA) is introducing additional reporting for the T4 slip, Statement of Remuneration Paid. Additional reporting requirements will apply to all employers and will help the CRA validate payments under the,
- Canada Emergency Wage Subsidy (CEWS),
- Canada Emergency Response Benefit (CERB),
- Canada Emergency Student Benefit (CESB).
Please Note: Employers who have already filed their T4 slips and summary for 2020 will not need to refile.
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 CEWS, CERB, 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.
Support For Employers
- Canada Emergency Rent Subsidy (CERS)
Canadian businesses, non-profit organizations, or charities with a revenue-drop due to COVID-19, may be eligible for a subsidy to partly cover their commercial rent or property expenses, starting on September 27, 2020, until June 2021.
- Canada Emergency Wage Subsidy (CEWS)
Canadian employers, who have seen a drop in revenue due to the COVID-19, might be eligible for a subsidy to partly cover their employee wages, retroactive to March 15. This subsidy will help employers to re-hire workers, prevent further job losses, and will help to get back into normal operations.
- 10% Temporary wage subsidy for employers
The Government announced a 10% temporary wage subsidy for employers for a period of 3 months.
- Individuals (excluding trusts)
- Certain partnerships
- Non-profit organizations
- Registered charities
- Canadian-controlled private corporations)
Considering that the above category of employers pays a salary, wages, or taxable benefits to employees, between March 18, 2020, and June 19, 2020, can reduce payroll remittances of federal, provincial, or territorial income tax by the amount of the subsidy. This measure is only applicable to remittances made to the CRA.
Deferral of GST/HST Remittances
The CRA will allow all businesses to defer, until June 30, 2020, any GST/HST payments or remittances that become owing on or after March 27, 2020, and before July 2020. This means that no interest will apply if payments or remittances are made by June 30, 2020.
Businesses that continue to experience difficulty in remitting GST/HST and customs duty amounts owing can contact the CRA and Canada Border Services Agency (CBSA) to make a request for the cancellation of penalties and interest, and/or for a flexible payment arrangement with the CRA.
Detailed Information: https://bit.ly/3mMZio0