COVID-19 … news for employers for payroll year-end 2020

2

November 17, 2020 by Stacey

 

An important heads up to any employers starting to think about T4 time!

There are key additional payroll reporting requirements for 2020. This information may change in the face of ongoing legislative developments.

At time of writing, two new elements have been added:

The Form PD27, ‘10% Temporary Wage Subsidy Self-Identification Form for Employers’ is connected to the 10% Temporary Wage Subsidy (TWS) claimed, or intended to be claimed at year-end. If your company took advantage of the Canada Emergency Wage Subsidy (CEWS) but not the TWS, you are still required to complete this form. The PD27 can be filed now, or with the annual 2020 T4 submission early in 2021. Failure to file the PD27 can trigger a Pensionable and Insurable Earnings Review.

Information on submitting the PD27 form is here

A copy of the PD27 form itself is here

The second reporting element, rather than being a new form, is the addition of additional income reporting boxes on the T4. In addition to the standard Box 14 ‘Employment Income’, boxes 57 to 60 have been added.

Each of these codes represents an eight-week pay period, and begins with the start of the CERB and CEWS programs. Amounts in these fields should correlate with the dates of payment rather than the pay period covered. Completion of these more granular fields will assist the CRA in determining the proper allocations of these special COVID programs to eligible recipients.

Further information on the expanded T4 reporting requirements for the 2020 payroll year can be found here

  • For those employers who complete their own annual payroll filings in-house, budget more time for the process this year, perhaps starting earlier than usual.
  • For those employers who utilize the services of a third party payroll provider such as ADP or Ceridian, reach out to your provider soon, to gain an understanding of your company’s role with respect to these additional elements.
  • For those clients who receive payroll services through a bookkeeper or accountant, you can expect higher billings than usual, given the nuances of these additional compliance requirements.

2 thoughts on “COVID-19 … news for employers for payroll year-end 2020

  1. Jo Ruelle says:

    Stacey – there’s an issue around those new boxes which – so far – hasn’t been resolved. The March period begins 15th March. That would normally bring into play the 1st – 15th March pay period for those paying semi-monthly. However, there are a fair few of us who cut the cheques for that pay period on the 13th as the practice is to pay on the actual date or on the last weekday before same. Given the cheques were cut before the 15th, can we ignore them when filling out the new boxes?

    Thanx.

    Like

  2. Stacey says:

    Hi Jo! Interesting situation. The CRA website states that the dates should be reported as funds are received. In my opinion, in your example, if paid before the CERB program was at play, it should not be counted in the ‘new T4 box’. However, I suggest that you touch base with CRA for a firm response on that.

    Like

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