Updated T4 Reporting Requirements for 2020 

The Canada Revenue Agency (CRA) has rolled out new reporting guidelines for the T4 Information returns for the year 2020. The primary objective behind these changes is to corroborate the payments made under various programs such as the Canada Emergency Response Benefit (CERB), Canada Emergency Students Benefits (CESB), and Canada Emergency Wage Subsidy (CEWS). These initiatives were launched to offer essential financial aid to Canadians during the COVID-19 crisis, and they come with stringent eligibility criteria. 

Many taxpayers have been inquisitive about the CRA’s method of verifying eligibility for CERB. It was anticipated that the CRA would introduce supplementary T4 reporting stipulations to confirm such payments. This was confirmed when the CRA disseminated this information to employers on September 2, 2020. 

For the year 2020, employers will be required to use specific codes to report employment income for individuals: 

• Payments for wages and salaries from March 15 to May 09, 2020 will be reported under Code 57. 
• Payments from May 10 to July 4, 2020 will use Code 58. 
• Payments from July 5 to August 29 will be categorized under Code 59. 
• Payments between August 30 and September 26 will be reported using Code 60. 

It’s crucial to understand that these codes correspond to the payment dates of the employment income and not the dates when the income was actually earned.