Officially known as the T4 Statement of Remuneration Paid Form, T4 form is the mandatory for filing your taxes. The employer is the supplier of the T4 slips. So, The following article will explore everything regarding T4 form such as what is meant by the t4 form? how you can get the t4 form and also why the t4 form is so important for a Canadian Employee? So, in this blog, you will find a simple guide to the T4 form from experts of Yogi & Associates.
1. What is meant by a T4 slip?
A t4 form is an information slip that summarizes how much money your employees earned over the past year. It is also used to file income tax every year. A person having multiple jobs will receive multiple T4 Forms or T4 slips, one from each employer.
2. Why is a T4 Form So Important?
A T4 slip is required for the following reasons:
- A T4 slip is needed in every province where the employee earn their income.
- If employees have been paid more than $500.
- If the employees are inactive or terminated.
- T4 slip is used to show what you have been paid before deductions.
3. What Information does a T4 Form Contain?
An employer’s T4 form includes Information about taxable income, benefits, allowances, deductions, and pension plan contributions. The T4 form contains small boxes, one for each heading. Each box has a specific number for an elaborative view. Some of these boxes are as follows:
4. Four types of T4 Filing
1. Web Form Method
This method is of great significance as it is free and secure. You need an internet connection to file the information return. Once you submit the Information, you will receive a confirmation number representing the acceptance information.
2. Electronic Method
You can use the electronic method for filing your information slips for a calendar year. Like the web form method, you need an internet connection to proceed with the process.
3. Internet File Transfer (XML)
You can send a maximum of 150 MB file size through a web browser. Your software will then automatically print, create and save all the electronic returns in XML format. However, the file size should not proceed to 150 MB.
4. Filing on Paper
Through the paper method, you can file up to 50 T4 slips. After that, you can use the internet file transfer or web forms online. If you need more slips, you can order a maximum of 9 single-page slips by calling 1-800-959-5525.
5. How to Fill Your T4 Forms?
You need to complete your T4 slips in following steps:
- All amounts should be added in dollars and cents
- Fill in the T4 slips in a clear way
- Fill in the form in alphabetical order
- All amounts need to be added in Canadian dollars
- Don’t use negative amounts
- Avoid changing the box headings
- Avoid use of hyphens/dashes between the numbers
Let’s Wrap it Up!
A T4 Form is a great and easy way to file your tax returns. Also, this form will help with some tax rules that the tax rules may vary over time and location. So, you must keep yourself updated with the latest information about the tax rules and regulations. And as far as an expert advisor is concerned, so there is no better taxation firm in Mississauga than Yogi & Associates. Our experts will advise you accurately about the T4 form. You can contact us anytime to seek help.