For the 2020 tax reporting year, CRA has introduced 4 new codes to the Other Information section of the T4 slip to accommodate the Canada Wage Subsidy (CEWS) , the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB). In addition to reporting employment income in T4 box 14, all employers that paid income to an employee on a pay date that fell between March 15 and September 26 are required to complete this new reporting.The new codes are based on 4 reporting periods as per the following table:
Microsoft has announced that they will add these codes to the available list so the employer can enter the amounts using the T4 edit. Employers are responsible to gather and update the T4 information for each employee.
What does this mean for your Payroll department?
As a processor of Canadian Payroll there are two parts to consider:
- Dynamics GP Canadian Payroll will NOT automatically calculate the information for Boxes 57 to 60; Payroll personnel must calculate this for each employee and manually update the T4.
- The employees’ T4 must have the information for Boxes 57 through 60.
Fortunately, Joesoftware has created a solution to automate this process. To solve the requirement to calculate the additional box amounts, Joesoftware is offering the 2020 Year End Accelerator (20YEA) which calculates the values and automatically updates Boxes 57 to 60. This also includes a SmartList report that can be downloaded to Excel for review and data validation.
Joesoftware has made the adjustments to Penny and to the T4 Print report to support the additional codes.
If your are planning to manually collect and calculate boxes 57 to 60 for employees or have another solution, you will only need the Penny and/or T4 print update.
If you would like to automatically calculate and enter the box 57 to 60 information, contact us or your partner to request Joesoftware’s 20YEA.