COVID-19 continues to cause chaos across the world, but it is also clear that businesses are going to have to evolve and grow in order to stay ahead of the curve. There are a lot of things that play a part in helping your business improve and grow, and this is something you need to think about. There are plenty of new rules in place that your business will need to adhere to, and this is certainly food for thought.
The CRA is trying to validate as many pandemic-related benefits as possible for businesses, and if you want to make the most of this. Recently, the CRA has announced that all Canadian business employers must report COVID-related employee payments. On the T4 2020 slip, this is defined as ‘Statement of Remunerations Paid.’
Simply put, remuneration is defined as money for paid work, and this is essentially focused on what you are paying to your employees. There are a lot of things that play a part in helping your business take charge of this, and every year T4 slips are necessary for employees for whom you have paid more than $500 to, or who you have made Canada Pension Plan contribution deductions. It is worth noting that T4 slips are used to report the following types of income that you might encounter as a business accounting service:
- Taxable benefits
- Pension adjustments
- Retiring allowances
Validating payments is also hugely important, and there are a lot of things that play a part in this. Your business needs to be able to validate payments it makes to individuals under the CERB and CESB programs. The new mandates for reporting employment income are time sensitive, and they must be done by certain dates, and these include:
- Code 57 (March 25-May 9)
- Code 58 (May 10-July 4)
- Code 59 (July 5-August 29)
- Code 60 (August 30-September 26)
What to Remember When Filling Out T4 Slips
It is vitally important to make sure you report employment income as much as possible, and there are some key things you need to remember when you are filling out these T4 slips. Fill out the slips clearly, and make sure you declare everything in Canadian dollars. Report every amount paid during the year in dollars and cents, but there is no need to include the dollar sign. Make sure you familiarize yourself with the changes the CRA has introduced to T4 reporting requirements.
It is important to remember how much your business needs to make tweaks and changes and looking into what the CRA has done and the new laws they have brought in is so important. You have to make sure you understand the requirements that matter for your business, and the financial decisions that you need to consider play a massive role in this right now.
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