New Box on the T4 for Second Canada Pension Plan (CPP) Contribution Reporting

As a result of the CPP enhancement, the CRA has created the following new boxes on the T4 slip to report the second CPP contribution. 

Effective January 1, 2024 (2023 tax year), employers will use the following new boxes:

  • 16A: Employee’s second CPP contributions
  • 17A: Employee’s second QPP contributions

CRA has advised that since this is effective for January 1, 2024, the boxes will be left blank for 2023 tax year. 

Bill C-47, the Budget Implementation Act, 2023, Received Royal Assent
On June 22, 2023, Bill C-47, the Budget Implementation Act, 2023, received Royal Assent. As a result, the following are the key measures being implemented:

Electronic filing, payment, signature, and correspondence requirements – Changes to electronic filing, payment, signature, and correspondence requirements, including the following:

Electronic correspondence – Change in the default method of correspondence to electronic, only for businesses that use the CRA My Business Account online portal, effective as of June 22, 2023. However, businesses will still be able to choose to receive paper correspondence (provided the request is made with 30 days notice and in prescribed manner). Similarly, amendments are made, effective as of 1 January 2024, to allow the CRA to provide a notice of assessment electronically to an individual for a tax return that the individual files electronically, if the individual is registered for the CRA’s My Account and has authorized that notices or other communications may be made available in this manner. Minor amendments are also made in respect of electronic notices sent to individuals to take into account changes to an individual’s email address, effective as of June 22, 2023.

Electronic filing and issuance requirements for information returns – Reduction in the mandatory electronic filing threshold for income tax information returns, from 50 to five returns of a particular type for a calendar year, applicable for information returns filed after 2023. Consequential amendments are made to the applicable penalty for failure to file information returns in the appropriate manner. In addition, issuers of T4A, Statement of Pension, Retirement, Annuity, and Other Income, and T5, Statement of Investment Income, information returns will be able to provide them to taxpayers electronically, without having to also prepare a paper copy or obtain taxpayer authorization, for information returns filed after 2021.

Electronic payments – Amendments to require electronic payments for remittances made under the Income Tax Act (the Act) that are over $10,000 (unless the payer or remitter cannot reasonably satisfy this requirement), applicable to payments made on or after January 1, 2024. Failure to comply with this requirement will result in a penalty of $100 for each such failure. Other amendments clarify that payments required to be made at a financial institution include online payments made through a financial institution, applicable to payments made on or after January 1, 2022.
Electronic signatures – Elimination of the requirement for handwritten signatures on Form T2200, Declaration of Conditions of Employment. This measure will be effective as of June 22, 2023.

Defined contribution pension plans – Amendments to permit plan administrators of defined contribution pension plans to correct certain under-contribution errors (subject to a dollar limit) and over-contribution errors made in any of the 10 immediately preceding years, applicable in respect of additional contributions made, and amounts of over contributions refunded, in 2021 and later years. The amendments also contain, among other things, simplified requirements to report these corrections.

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