2020 has definitely been a year of change and this is the newest change from CRA.
For the 2020 tax year, the CRA has indicated that for the 2020 T4 slips (due March 1, 2021), there will be the need for additional reporting on information on the T slips.
This additional reporting requirement will apply to all employers and will help the CRA validate payments made under the various COVID -19 pandemic measures put out by the Federal Government.
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.
If you are reporting employment income for the period of April 25 to May 8, payable on May 14, use code 58.
We will gather more information as it becomes available but for now, ensure your payroll records are accurate for when the work was done and paid; paying close attention to the dates above.