Prepare For The Upcoming 2020 Tax Season With Next Gen Business Solutions!
Everything You Need To Know About The New 2020 T4 Tax Requirements And Preparation!
The deadline for filing your 2020 T4 slips with the CRA (Canada Revenue Agency) is coming up! Have you been staying on top of your bookkeeping this year? Don’t fall behind!
This year has had many ups and downs - causing stress on many small businesses and making it very difficult to keep your bookwork organized. Thankfully, you do not have to handle tax season alone!
At Next Gen Business Solutions, we serve both the GTA and surrounding regions in Ontario with quality bookkeeping and accounting services!
Are you an entrepreneur with a small business payroll? Wondering how to keep your books up to date for your business? At NextGen Business Solutions, we can help!
We’ve recently brought it to your attention that the CRA has released new auditing and T4 requirements for small businesses. Read more about these new requirements HERE.
Because of the necessary government funding that took place throughout 2020, the CRA has introduced new reporting requirements for the T4 and T4 Summary reporting.
These new documentation requirements will apply to ALL employers, including small business owners, and will help the CRA validate payments under the:
- Canada Emergency Wage Subsidy (CEWS)
- Canada Emergency Response Benefit (CERB)
- Canada Emergency Student Benefit (CESB)
Important Note: Eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period of time. The new requirement means that employers should report income and any retroactive payments made during these periods.
Preparing T4 statements for your employees can be confusing and time consuming. The information must be accurate and properly documented as well, causing a lot of stress for entrepreneurs with small business payrolls.
At Next Gen Business Solutions, we understand the need for good bookkeeping and accounting services and strive to provide our small business clients with easy, affordable and practical business solutions.
Our mission is to discover, create and implement the perfect solution for your business needs!
What Are The New 2020 T4 Reporting Requirements
If you are a small business owner, then knowing how to adapt to the new 2020 T4 reporting requirements is imperative.
With our expertise and guidance, you can experience a stress free tax season!
Understand the New T4 Reporting Requirements
For the 2020 tax year, in addition to reporting employment income in Box 14 or Code 71, business owners must use new information codes. This will allow employment income and retroactive payments to be accurately accounted for.
Below is the list of new codes within your T4 Statement.
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
Important Note: Eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period. The new requirement means that all employers should report income and any retroactive payments, including cash and non-cash taxable benefits, made during these periods, regardless of whether or not they applied for and received CEWS.
Example T4 Code Usage - Employment Income
If you are reporting employment income for the period of April 25th until May 8th, payable on May 14, you would use Code 58.
How Can Next Gen Business Solutions Help You?
At Next Gen Business Solutions, we work with small businesses to provide easy, affordable and practical bookkeeping and accounting services.
Not sure where to begin? Let us worry about the new T4 requirements so that you can focus on running your business this year!
When To File 2020 T4 Slips
• March 1, 2021
Benefits Of Bookkeeping and Accounting With Next Gen Business Solutions:
- Peace of Mind
- You will Avoid penalties and late filing charges.
- Your books will consistently be kept up to date.
- You will be able to apply for any funding that is available to your business
Are you ready for the upcoming 2020 T4 slip deadline? Confused about the next steps in bookkeeping preparation? Contact Next Gen Business Solutions at (416) 250-0148 or fill in the form below for a FREE 30 minute consultation with a qualified bookkeeper!