The Canada Revenue Agency (CRA) announced new reporting requirements for all Canadian employers who issue T4 slips.
In connection with the COVID-19 support programs launched in 2020, employers will have to submit more detailed T4 information, regardless of whether they applied for the various wage subsidy programs or not.
For more information on the new reporting requirements, including the new Form PD27, read our detailed summary.
All Canadian employers who issue a T4 slip, Statement of Remuneration Paid, will have additional reporting requirements for the 2020 calendar year. These additional reporting requirements will help the Canada Revenue Agency (CRA) validate payments under the various COVID-19 government programs including:
These new reporting requirements apply to all employers, regardless of whether they applied for these programs or not.
For the 2020 calendar year, in addition to reporting employment income in Box 14 or Code 71, the new information codes below should be used to report employment income and retroactive payments made in the following periods:
E.g. If you are reporting employment income for the period of April 25 to May 8, payable on May 14, use code 58.
Employers eligible for the TWS are required to complete and submit Form PD27, 10-percent TWS Self Identification Form for Employers, to the CRA. This includes employers who have already claimed the TWS and those who haven’t but still intend to, as well as employers who qualified for both the TWS and the CEWS but elected to claim a TWS of 10 percent or less (including a claim of zero). However, I
The CRA will use this form to reconcile the TWS remittances to the amounts reported on the 2020 T4 Summary. Employers can also instruct the CRA on how they want to apply any balances of TWS available on the Form PD27.
The self-identification form can be submitted online, by mail or fax. The form requires the following information to be provided:
There is currently no due date for Form PD27, however employers are encouraged to complete and submit this form as soon as possible to avoid receiving a discrepancy notice from the CRA.
As the T4 reporting deadline approaches, it is important to be aware of the new reporting obligations associated with the various government wage subsidy programs introduced in response to COVID-19. These new reporting requirements will necessitate employers to spend additional time to gather information and ensure the proper disclosures are made for each employee. Detailed payroll information is needed and if not readily available could be an onerous task.
For more information on the new T4 reporting requirements or assistance with completing Form PD27, please contact us.