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T4 summary and CEWS 10%

Slips
#1

We have received conflicting information on how to report the total remittances on the T4 summary (Box 82).

Both PaymentEvolution and TaxCycle say that we should report the actual amount remitted and CRA will then add the amounts from the PD27s that have been submitted.

Prior to seeing that information, someone in our office called CRA. The person at CRA said we should add the amount from the PD27 to the actual amount remitted and put the combined total on the T4 summary (Box 82).

We haven’t seen anything in writing from CRA, including in what would be the most obvious place, the T4 guide. We all know that an answer over the phone from CRA is not worth the paper it is written on, so we would at least like to see it written somewhere.

While it might be 6 of one and half a dozen of the other, I prefer to use the method that is going to result in the least interaction with CRA.

Has anyone found anything concrete from CRA on what they want?

#2

I think you mean the 10% TWS. Your first option is the correct treatment. I found that somewhere on the CRA site, I think in my search for the TWS. I needed to get it straight in my mind what I can claim on form PD27. I needed to confirm my original thought that the claimable wages refers to the date paid and not the date earned. For my clients, the work involved in doing the deduction monthly is way over their heads. I told them months ago that I could get them a cheque at year end. So, go with option one. Report actual payments on the T4 summary. Then, complete the PD27, send it in and wait for the s**t to hit the fan, because it will. T4’s go to Sudbury while the PD27 goes to St. John’s (in my neck of the woods). What do you think the chances are that the two will ever get matched up? Could be a bumper year for accountant suicides.

#3

If CRA can believed, what they are expecting is:

If remittance for 2020 was reduced for TWS - income for 2020.
In this case include the TWS amount in remittances for year figure (Box 82 T4SUM)

If TWS is refunded - income when received.

#4

So far I am no better off… :laughing:
@jhd.hemeon says option one
@Arliss seems to say option two

Maybe @Elizabeth or @sarka ca tell me where the information on the TaxCycle site came from (I have to assume it was the CRA, but I can’t find the information there).

#5

For what it is worth, VideoTax News and Mowbray Gill say to add it to the remittances amount, as does CRA… unless it is to be refunded…

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#6

This information is being provided based on the fact that CRA has not added or amended any fields on the T4 Summary to account for the wage subsidy. Their instructions in the T4 Guide still say to report the amount remitted for the year (so amount paid after the deduction for the subsidy) and actual amounts withheld for source deductions.

CRA has stated they will use the PD27 to reconcile the payroll account for the year. See Reporting the TWS to the CRA - Canada.ca

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I will reach out to our CRA contacts and see if I can get a definitive answer to this.

#7

I filed my T4 & T4SUM online using their website. In my case, I had submitted the PD27 months ago, and had to include the TWS in line 80 and 82 in order to balance. Simply claiming my remittances (less the TWS) did not balance the T4SUM.

Hope this helps.

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#8

I called CRA about this yesterday. I was told that the subsidy amount should be included with the remittances for the year in box 82 on the summary.

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#9

Hello all,

I just got off phone with a CRA rep from Newfoundland ( she was super wonderful) who was reviewing a subsidy I submitted… and she confirmed everything goes in Box 82. They are working overtime to try to get these subsidies processed and posted to the accounts to try to avoid discrepancy notices being sent out.

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#10

Thanks for the input everyone. It seems the most recent information is to include the PD27 amounts in box 82.

#11

If it helps this discussion, Box 82 is not transmitted as part of the electronic filing of the T4 Slips and summary. Only the employment Income and withholdings amounts (including employee and employer portions) are transmitted so it will not impact how CRA processed the return on their end.

Adding the TWS deemed remittance to the actual remittances paid in the year in box 82 would result in a refund or balance owing on the file/client copy of the T4 Summary which should correspond to the amount in the CRA RP account once they have processed the PD27.

#12

So I guess what you’re saying, @sarka, is that Box 82 is just for the preparer to see how much, if any, we’re out of balance.

#13

Yes @kevin , since this does not get sent to CRA box 82 would be for your reconciliation of the RP account and so you can advise your client if there is a discrepancy that needs to be addressed. If you do add the TWS amount into box 82 I would suggest adding a memo so it is clear should you need to revisit the file in the future.

#14

@sarka You’re correct, it would change nothing even if you put $0 in that box. CRA will reconcile amongst itself your total remittances payable from your T4SUM and what they have on file, which this year would include the TWS declarations.

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