The CRA has introduced several Canada labor law updates. The most notable changes pertain to employer reporting and travel allowance taxable amounts.

Canada mandates additional T4 slip reporting requirements for employers

According to the Canada Revenue Agency (CRA), all employers are now required to comply with additional Statement of Remuneration Slip reporting requirements for the 2020 tax year, to assist in verifying payments. Employers are not obliged to refile slips if they have already filed a 2020 T4 slip and summary.

Employers are also now required to use new information codes on employment income reports and backdated payments that fall within the intervals below:

  • Code 57: Employment income – Between March 15 and May 9
  • Code 58: Employment income – Between May 10 and July 4
  • Code 59: Employment income – Between July 5 and August 29
  • Code 60: Employment income – Between August 30 and September 26

Employer Considerations:

Additional reporting requirements will implemented for all employers; these must be completed by the specified dates.

Canada Revenue Agency (CRA) imposes an increase in the taxable amount for overtime meal

The overtime meal rate has been increased by the Canada Revenue Agency (“CRA”),  from CAD 17 to CAD 23. The CRA has also raised the rate per meal for employees in the transportation industry, and for other employees who are entitled to claim meal expenses. The rate for this has also been increased from CAD 17 to CAD 23. Both have been set into place as of January 1, 2020.

Employer Considerations:
In relevant cases, employers must be attentive when reporting meals and allowances on employees’ T4 slip, as some will be directly affected by the new increase in the taxable amount. The information shared in this article provides general information only, and not professional advice. If you need to consult on international expansion of your business or have specific questions about local policy compliance, contact us today to speak to one of our experts.

About Global Upside

Companies today are spending disproportionate amounts of time and resources on compliance and keeping pace with day-to-day human resources, payroll, accounting, tax, legal, and compliance challenges. At Global Upside, we are shifting the balance. Our integrated services, delivered via a single point of contact, help simplify your day-to-day operations and keep you compliant in 170+ countries so you can focus on innovation and growth.

If you would like to learn more about our business services or have any questions about operating globally, contact us today.