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. The PD27 can be filed now, or with the annual 2020 T4 submission early in 2021. Failure to file the PD27 while having used the TWS 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.