I have two clients who have told me they received $12,000 in CERB last year who do not have a T-slip. Should we enter these as T4A’s or T4E’s, or??
They are T4A’s. I’d get slips however as there will likely also be some tax withheld as I am pretty sure the maximum CREB was $10,000 so at least $2,000 of it was CRB which has tax withheld. They are on the CRA website so you can download them if you get authorization.
The maximum CERB was $14k, extended through to September 26. No tax was withheld up to that point.
I insist on having authorization to access the client’s CRA account - then there is no question as to what was received on what document.
My experience is the general public (including clients) have been using the term CERB fairly loosely to represent money paid to them last year in multiples of $2,000 every 4 weeks or $500 per week;
This $2,000 every 4 week benefit may have been received through Service Canada via the Employment Insurance mechanism if the person had enough insurable earnings. In this case, the benefit was reported to the recipient on a T4E slip.
If a recipient did not have enough insurable earnings to qualify for the benefit via the Employment Insurance stream then they could apply for the benefit directly through their CRA account. In this case, the $2,000 every 4 week benefit was reported to the recipient on a T4A slip.
My understanding is there was NO tax deducted on the CERB benefit whether it was administered directly through the CRA or if it was administered via the EI system.
If a person applied for EI Benefits after March 13, 2020 their benefits mirrored the payments made under the CERB system ($2,000 every 4 weeks with no tax deducted). If a person applied for EI benefits prior to March 13th, 2020 or they had an existing EI claim reactivated their claim was processed under the old EI system, which meant the benefit was a percentage of their gross wage with Federal Income tax deducted. In both cases, a 2020 T4E was issued to the recipient.
We do have authorization for all our clients. We did retrieve a slip for one of those clients, but for the other there is no slip in his account.
Thanks, my guy that I don’t have a slip for has a small Corp, so not part of the EI stream. I will assume T4A and include the amount he says he received on his return.
Thanks to all who responded. This forum is so helpfull.
Had a T4E for Jan 2020 and 2000 for CERB.