'The fundamental issue is the CRA is relying on a T4 rather than the reality of what the person was paid, or what was deducted,' said Gerry Campbell, a tax specialist with Liberty Tax Service East Toronto. It also under-reported her Employment Insurance and CPP deductions.Īs a result, West was facing a tax bill of $2,864.80. The T4 slips were wrong thanks to Phoenix, the federal government's problem-plagued payroll system, launched three years ago.Īccording to Marilyn West's 2016 T4 slip, she saw no income tax deducted that year. Read more on the CRA website on this link.A federal government public servant recently succeeded in getting the Canada Revenue Agency to back down after taking the agency to court to force it to acknowledge that its tax assessment - based on inaccurate T4 slips - was wrong. How to Reportįor example, if the employer is reporting employment income for the period of April 25 to May 8, payable on May 14, use Code 58. The new requirement means all Canadian employers should report income and any retroactive payments made during these periods using these new codes. The Four New Codes for 2020 T4 SlipsĬode 57: Employment income – from March 15 to May 9Ĭode 58: Employment income – from May 10 to July 4Ĭode 59: Employment income – from July 5 to August 29Ĭode 60: Employment income – from August 30 to September 26 What does this mean for employers? Each period is aligned with COVID 19 benefit eligibility. In addition to reporting employment income on the T4 in Box 14 (employment income) or Code 71 (Canadian Indian tax-exempt income employment), the CRA has introduced four new codes to report employment income and retroactive payments.

This measure will help the CRA validate payments related to COVID-19 response programs including: the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB). These new reporting requirements apply to all employers. Effective for the 2020 tax year, the Canada Revenue Agency (CRA) has announced additional reporting requirements for T4 slips.

Canada revenue agency t4s