Overview
Understanding **T4 reporting changes** is crucial for employers and employees alike to ensure compliance with updated regulations and avoid penalties. These adjustments often reflect shifts in government policies, technological advancements, or responses to economic conditions, impacting how income and deductions are reported to the Canada Revenue Agency (CRA).
- Compliance: Employers must adhere to new guidelines for accurate T4 slip preparation and submission, which can involve specific regional considerations.
- Employee Impact: Changes can affect how employees view their taxable income, benefits, and deductions, potentially influencing their tax returns.
- Software Updates: Payroll software providers typically release updates to accommodate T4 reporting changes, requiring businesses to ensure their systems are current.
- Deadlines: Staying informed about revised submission deadlines is essential to prevent late filing penalties for both employers and employees.
Navigating T4 Reporting Changes for Edmonton Businesses
Here’s some of the changes to T4 reporting for 2020 required by the Canada Revenue Agency (CRA).
Four new codes have been introduced to the “Other Information” portion of your T4 slip. In addition to reporting employment income, all employers that paid employment income to employees on dates between March 15 and September 26 2020 are required to complete these sections.
| Code | Pay Dates Between |
| 57 | March 15 and May 9 2020 |
| 58 | May 10 and July 4 2020 |
| 59 | July 5 and August 29 2020 |
| 60 | August 30 and September 26 2020 |
The reporting of these amounts will help the CRA to review the individual’s eligibility to receive COVID-19 benefits such as the Canada Emergency Response Benefit (CERB).
The information will also assist the CRA to review and audit businesses that claimed the Canada Emergency Wage Subsidy (CEWS).
What if more than 6 codes are required?
Now that there are four more reporting requirements, employers may be required to report information in more than six codes for the same employee. If this happens, an additional T4 slip will need to be completed.
You are not required to complete all the data on the additional T4 slip. The requirements will be:
- Employers name and address
- Payroll account number
- The employee’s SIN and name
- Completed information in the “Other Information” area (each code and amount only needs to be entered once)
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