With the T4 deadline quickly approaching, we wanted to remind clients of the new T4 reporting requirements for employers. For the 2020 tax year, the CRA has introduced additional reporting for the T4 slip, Statement of Remuneration.

The new reporting requirements are required for all employers. CRA will be using the new requirements to audit the various subsidy programs implemented in response to the COVID-19 pandemic including the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB).

There are four new boxes this year that every employer must report on each employee’s T4 slip. These boxes are:

  • 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 CERB, CEWS and CESB programs base the eligibly criteria on employment income for specific periods. Employers should report any income paid to employees, including retroactive payments made during these periods.

Form PD27 – 10% Temporary Wage Subsidy Self-Identification Form for Employers

New this year, CRA released Form PD27 – 10% Temporary Wage Subsidy Self-Identification Form for Employers in the fall of 2020. The form will be used by CRA to reconcile employer’s claims under the 10% Temporary Wage Subsidy (TWS), CEWS, and remittances paid into a company’s payroll (RP) account. Many employers will be required to file Form PD 27, including any employer who:

  • claimed the TWS,
  • is planning to claim the TWS either before or at the time of filing their T4 information returns,
  • claimed the CEWS, and as a result, need to confirm on Form PD27 the amount of the TWS the employer is claiming (refer to line F on the CEWS application)

The only businesses not required to file the PD 27 are employers who did not, or do not wish to participate in either the TWS or CEWS recovery benefit programs.

Form PD27 for an employer should be filed before the T4 information returns, and before February 28, 2021.

Please click here for examples of how to complete Form PD27

Please click here for a copy of Form PD27

Canada Emergency Wage Subsidy (CEWS) – Filing Deadlines

The first deadline for the CEWS program is January 31, 2021. Periods 1 – 5 which start on March 15, 2020 and end on August 1, 2020 must be filed by January 31, 2021. Remaining periods are due no later than 180 days after the end of any given period. This results in a CEWS period being due every 28 days after January 31, 2021. For example, CEWS period 6 is due February 25, 2021 and period 7 is due March 25, 2021. If your company is planning to claim CEWS, please make sure you are familiar with these deadlines.

If you have any questions on the new reporting requirements, please contact your tax advisor at Cameron Izard Snell LLP.