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Source Deductions (T4)

Source Deductions (T4)

 

New CRA T4 Requirements for 2020

Canada Revenue Agency (CRA) is introducing additional reporting for the statement of Remuneration Paid (T4 Slip) for the 2020 tax year.

CRA is adding the following codes for reporting employment income and retroactive payments due to the COVID-19 pandemic: 57, 58, 59, and 60.
In addition to reporting employment income in Box 14 or Code 71, employers can use these new information codes when reporting employment income and retroactive payments in the following periods:

  • Box 57: Employment income – March 15 to May 9
  • Box 58: Employment income – May 10 to July 4
  • Box 59: Employment income – July 5 to August 29
  • Box 60: Employment income – August 30 to September 26

The eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period. The new requirement means employers should report income and any retroactive payments made during these periods. The period is the day employee was paid (paycheque date).

Software

If you are using accounting software to prepareT4’s or generate the numbers required for T4 reporting, you may need the latest updates for this functionality. Below is the latest information we have for the main accounting programs.

Sage 50 (Simply Accounting)

Sage 50 customers are expected to update to the latest version (Sage 50 2021.1), to print and report their 2020 T4’s as the functionality for the new codes will likely not be added to the Sage 50 2020.3 tax table update. Sage is being pressured to also add this functionality to the 2020 version, however, they have not announced if and when they will be implementing this.

If you are unable to update Sage, or would prefer to manually run a report to find an employee’s income for a required period, please visit NCCA.CO for instructions.

QuickBooks Desktop

Intuit has updated QuickBooks 2020 and 2021 with the functionality for T4 boxes 57-60 to auto-fill, while still letting you edit them as needed.
Note: If you have the new boxes, but they do not auto-fill, you are one update behind the current release.

If you are unable to update QuickBooks, or would prefer to manually run a report to find an employee’s income for a required period, please visit NCCA.CO for instructions.

QuickBooks Online

QuickBooks Online payroll module includes the new T4 boxes, however they are only populated automatically. Since there is no option to override the amounts in T4 boxes 57-60, you need to correct the paycheque of the employees to have the correct amount show up in the boxes.

 

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