New T4 reporting requirements
For the 2020 tax year, the CRA will be introducing additional reporting requirements for the T4 slips. The new requirements will be used to validate payments under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB).
In addition to reporting employment income in Box 14 or using Code 71, additional information codes will need to be used for employment income and retroactive payments in the following periods:
- Code 57: Employment income – March 15 to May 9
- Code 58: Employment income – May 10 to July 4
- Code 59: Employment income – July 5 to August 29
- Code 60: Employment income – August 30 to September 26
The new additional requirements will apply to all employers.
Extension of the Canada Emergency Business Account
On August 31, 2020, the Canadian government announced that the application deadline for the Canada Emergency Business Account (CEBA) is extended from August 31 to October 31, 2020.
The government also stated that they are working with financial institutions to make the CEBA program available to those with qualifying payrolls or non-deferrable expenses that have so far been unable to apply due to not operating from a business banking account.
Further details on these changes will be made available in the coming days.
Extension of the Business Credit Availability program
On August 31, 2020, the Canadian government announced that the Business Credit Availability Program (BCAP) is extended to June 2021.
Extension of the Canada Emergency Commercial Rent Assistance
On September 8, 2020, the Canadian government announced that the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses will be extended by one month to help eligible small businesses pay rent for September. All provinces and territories continue to participate in this initiative and collaborate with the federal government to provide rent supports to those small businesses most in need. Current CECRA application deadlines will also be extended to accommodate this extension. This will be the final extension of this program as the government explores options to support small businesses as they face the ongoing challenges of the COVID-19 pandemic.