OH CANADA! What’s Happening to our 2020 T4s?
Updated as of December 21, 2020:
Tax updates have been released!
GP Version 18.3.1200
Canadian Payroll Version 18.3.1227
GP Version 16.00.0864
Canadian Payroll Version 16.00.0870
Changes have been made to allow users to key in amounts in the T4 Other window for the following COVID-19 information: Code 57, Code 58, Code 59 and Code 60.
It is important to note, that Microsoft Dynamics GP will not calculate these amounts, just allow users to enter them in the Payroll Other T4 Information. Once populated they will be included in the XML and on the T4s.
Please consider the offerings Encore is offering. These four (4) boxes must be populated for each employee regardless of your CEWS standing or the employee’s CERB standing. If you recreate your T4s, you will need to re-enter this information…again…
You Have Three Choices
- Calculate and enter these manually yourself.
- Use one of Encore’s reports to calculate then enter the amounts manually yourself (Option #1 or Option #2)
- Use Encore’s automated solution to populate these boxes and your choice of either the Excel or SSRS report for backup information, included (Option #3).
Updated as of December 3, 2020:
Encore has the following solutions to offer:
- An Excel Refreshable Report – $270
The report will calculate the values for each of the boxes and display the amounts in a pre-designed pivot table so that the amounts can then be manually entered into the T4 Edit window.
- An SSRS Report – $360
The report will calculate the values for each of the 4 boxes so that the amounts can be manually entered into the T4 Edit window.
This report offers a drill down to view what makes up that number.
- Automated solution – $540
A .cnk installed customization that will include documentation. This option will populate the calculated values for each of the 4 new boxes.
Will including either the Excel Refreshable Report or the SSRS report, depending on your setups. This report will be provided for your detailed reconciliations.
Updated as of November 13, 2020:
The latest word from Microsoft
Microsoft has indicated that they will provide us the ability to add the four new boxes to our T4 Edit window. This is not the best solution, as next year when you run your T4s this information will be over-written.
Where will you get your numbers from?
- SSRS Report: We have written an SSRS report that will provide you with this information. It will give you a breakdown Employee by Employee and what amounts belong in which code. These amounts will be divided by province to accommodate employees with T4s in more than one province. In addition, this SSRS report will provide you the ability to drill into these amounts to acquire a more detailed view of what is included in each amount.
- Smart List Report: We are currently working on a SmartList that can be exported to Excel, or (better yet) published to an excel refreshable report. This SmartList will be a list of details that you can organize into any format you need.
How will you get those numbers into GP for a large number of employees?
- App or add-on to be created that will automate the calculation and entry into the T4 Edit window.
We are looking into a couple possibilities. Either Encore or another company will determine if something can be developed to help in this area.
- Script that can be run in SQL to update the T4 Edit window.
We are looking into developing these scripts. However, you will need to ensure you run adequate T4 reports as this data will disappear after the scripts are run.
How much will this cost?
- We will keep you posted of our offerings!
- We don’t have this information yet, but when we do, either your Client Representative will call you or you can call them for further details.
- You can also watch for our blogs and emails.
Updated as of October 26, 2020:
CRA has released a new T4, it does not offer specific boxes for the new codes. There are some text changes, but no NEW boxes. The back page offers the new descriptions. This means we will need to find a way to populate them!
- 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
We’re still waiting for Microsoft to tell us how they will be handling this.
Information from the CRA linked here.
It appears, to accommodate CRA’s ability to validate payments for the Canada Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB), CRA is adding four Codes. These Codes will divide employment income, already reported in box 14 or Code 71, into four reporting periods:
- Code 57: Employment income – March 15 to May 9 (8 weeks)
- Code 58: Employment income – May 10 to July 4 (8 weeks)
- Code 59: Employment income – July 5 to August 29 (8 weeks)
- Code 60: Employment income – August 30 to September 26 (4 weeks)
The reporting period is the pay date, not the dates worked.
It is not clear if CRA will be releasing a new T4. It appears the information may need to be added to the existing boxes at the bottom of the T4. Currently there are six boxes. If you need to use more than six boxes, this information should spill onto a second T4.
We haven’t confirmed this yet, the current information is ambiguous.
Currently, if you tried to manually add these boxes to the T4 Edit window, it will not let you as those are not valid Codes. I am sure Microsoft will fix that.
What we don’t know yet, is how these values will be calculated. Best case scenario: Microsoft will calculate this for us, using the existing data in the tables. Worst case scenario; we will need to design a report that will pull this information for you and you will need to manually enter it.
We are watching every day for new information and will let you know as soon as we hear anything. Please get in touch if you have further questions.
Answer some basic questions about your company and your requirements, and find out what products would fit your business.