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Information for employers:CRA and COVID-19

New T4 reporting requirements

For the 2020 tax year, the Canada Revenue Agency (CRA) will be 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), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB).

Please note that employers who filed their T4 slips and summary for 2020 on or before December 22, 2020 will not need to submit an amended T4.

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 that all employers should report income and any retroactive payments, including cash and non-cash taxable benefits, made during these periods, regardless of whether or not they applied for and received CEWS.

Example

If you are reporting employment income for the period of April 25 to May 8, payable on May 14, use code 58.

Support for employers

Employer-provided benefits and allowances

In light of the COVID-19 pandemic, the Canada Revenue Agency (CRA) has adopted a number of administrative positions for employer-provided benefits pertaining to commuting, parking and home office expenses.

Learn more: Employer-provided Benefits and Allowances: COVID-19

Canada Emergency Rent Subsidy (CERS)

Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to COVID-19 may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.

If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.

Learn more: Canada Emergency Rent Subsidy (CERS)

Canada Emergency Wage Subsidy (CEWS)

As a Canadian employer who has seen a drop in revenue during the COVID-19 pandemic, you may be eligible for a subsidy to cover part of your employee wages. This subsidy will enable you to re-hire workers, help prevent further job losses, and ease your business back into normal operations.

Use the online calculator or spreadsheet to find out how much you can qualify for.

Learn more: Canada Emergency Wage Subsidy (CEWS)

10% Temporary wage subsidy for employers

The Government announced a 10% temporary wage subsidy for employers for a period of 3 months.

Eligible employers (individuals (excluding trusts), certain partnerships, non-profit organizations, registered charities, or Canadian-controlled private corporations) who pay 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.

Learn more: 10% Temporary Wage Subsidy for Employers

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 your 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.

Learn more: FAQs for deferral of GST/HST Tax Remittances