Annie Chong, manager of Carswell’s payroll consulting group, fields questions from readers
QUESTION: I have to file more than 50 T4s that relate to 2008. I know mandatory electronic filing came into effect in 2010 for more than 50 T4 returns, but my T4s relate to 2008. Do I have to file them over the Internet or can I choose the method of submitting them?
ANSWER: Since you have more than 50 T4 returns to file, you have to file them by Internet File Transfer in extensible mark-up language. The Canada Revenue Agency states mandatory electronic filing relates to the date you are filing the returns, not the year to which the forms relate.
T4 reporting and garnishee orders
QUESTION: We take deductions from some employees’ pay to fulfill garnishee orders. Where do we report these deductions at year-end? I can’t find a box or code for them on the T4 or T4A.
ANSWER: You won’t find a box or code on the T4 or T4A (or on the RL-1 for Quebec employers) because deductions for garnishee orders are not to be reported at year-end.
Reporting SUB plan payments
QUESTION: We set up a Supplemental Unemployment Benefit (SUB) plan in the last year. How do I report the payments our employees received under the plan in 2010?
ANSWER: The reporting requirements depend on the type of SUB plan the employer has set up. Payments from plans that supplement maternity, parental and compassionate care employment insurance (EI) benefits are considered regular employment income and must be reported in box (14) on a T4 and in box (A) on an RL-1 (for Quebec).
Payments from plans that qualify as SUB plans under the federal Income Tax Act must be reported on a T4A. In the “Other Information” area of the form, report the payments using code 152. In the adjacent box, enter the amount of the payments.
These types of SUB plans generally provide payments to supplement EI benefits paid for unemployment due to illness, injury or quarantine, training or a temporary work stoppage.
To qualify, the employee must meet certain criteria and be registered with the government. For Quebec, report the payments in box (O), using code RA.
Annie Chong is manager of the payroll consulting group at Carswell, a Thomson Reuters business, which publishes the Canadian Payroll Manual and operates the Carswell Payroll Hotline. She can be reached at [email protected] or (416) 298-5085.
