A T4 Form is a great and easy way to file your tax returns. Since a T4 slip connects to your income, filing taxes for many working Canadians is essential. So we’ve put together this unique guide to help you understand where to find your T4 slip.
1. What is a T4 Slip in Canada?
The T4 – Statement of Remuneration Paid tax slip is an overview of an employee’s earnings and deductions for the entire year. The employer issues the T4 slip. Also, this is the most frequent slip recorded on the yearly tax return.
2. How Can You Get Your T4 Slip?
The employer provides you with a T4 form. Your employer must deliver your T4 slip via mail, online, or in person before the end of February. You can access your T4 slip via the firm’s website with your employee login.
You can log into your online account if you have a CRA My Account. And access your T4 slips as soon as the employer files them with CRA. This happens around the middle of March. T4 slips from past years are also available on your account.
“Few of us test our powers of deduction, except when filling out an income tax form.” -Lawrence J. Peter
3. What Does Each Box On T4 Slip Represent?
You will find data on the T4 slip reported in “boxes” that you will need to complete your tax return.
- Box 10: Province of employment
- Box 12: Social insurance number
- Box 14: Income from Employment
- Box 16: Employee contributions to CPP
- Box 17: Employee contributions to the QPP
- Box 18: Employee contributions to EI
- Box 20: Contributions to RPP
- Box 22: Income taxes taken out
- Box 24: EI Insurable Earnings
- Box 26: Pensionable income under CPP and QPP
- Box 44: Union Dues
- Box 46: Donations to charities
- Box 52: Pension adjustment
- Box 55: PPIP premiums paid by employees.
- Box 56: Insurable income under PPIP
The T4 slip’s “other information” section is present at the bottom of the T4 form. It contains boxes with codes and amounts for employment commissions, deductible payments, taxable allowances and benefits, fishers’ income, and other entries if they apply. Some Common boxes in this area include the following:
- Box 42: Employment commissions
- Box 66: Allowances for eligible retirees
- Box 67: Retiring benefits that are not eligible
- Box 71: Employment – Indian (exempt income)
- Box 77: Workers’ Compensation Benefits (WCB) remitted to Employer (PHSPs)
- Box 85: Employee-paid premiums for Private Health Services Plans (PHSPs)
Please check another article by Yogi & Associates on TD1 Forms. Click here, A Complete Guide to Understanding the TD1 Forms.
4. How to Fill Your T4 Slip?
- Fill out the slips carefully.
- Report all payments you made during the year in dollars and cents. Except for changes in pension amounts, which you must report in dollars only.
- Record all the sums in Canadian dollars. Check Exchange rates to view the average exchange rates.
- Avoid using dashes or hyphens between numbers.
- Do not use the dollar sign ($).
- Never include negative dollar amounts on slips.
- If you need to change information from earlier years, give the CRA’s amended slips for those years.
- Leave a box blank if you do not need to enter an amount in it; do not write “nil.”
- All the box headings should remain the same.
5. Three Types of T4 Filing
1. Web Form Method
It is a free and secure method for filing T4 slips. To file the information return, you must have an internet connection. Once you’ve submitted the information, you’ll get a confirmation code. This code informs you about CRA’s approval on your T4 slip. For more details, visit the Web access code.
2. Electronic Method
Using the electronic approach, you can submit your information slips for a calendar year. The technique requires an internet connection, just like the web form method. You can get more information here, Filing Information Returns Electronically (T4/T5 and other types of returns).
3. Filing on Paper
You are allowed to file up to 50 T4 slips using the paper method. Afterward, you can use online web forms or file sharing on the internet.
You can order up to 9 single-page slips if you require more copies by contacting 1-800-959-5525.
6. What If There’s a Mistake On My T4?
Before sending the T4 slips to CRA, if you find any mistakes, you can fix them by creating fresh slips. Also, make sure to delete the wrong ones from the return. Confirm any modifications you make to the slip if you don’t prepare a new one. Take care to update the T4 Summary as well.
7. How To Manage Your Payroll?
Some of the procedures are merely good housekeeping measures. Such as checking your employees’ social insurance numbers, examining your payroll system, etc. While others are legal duties such as submitting your payroll taxes appropriately, submitting employee T4 slips and summaries to the CRA, etc.
The Bottom Line!
For small businesses across Mississauga, Yogi & Associates provides payroll administration services. Our team of payroll certified specialists can assist you in being compliant and stress-free with everything from biweekly payroll processing to T4 preparation and tax filings. To find out more about our payroll services, feel free to contact us today!
People Also Ask
1. Does Everyone Get a T4 in Canada?
You must complete T4 slips for each person who received compensation from you during the year if you have to deduct:
- Income tax
- EI premiums
- PPIP premiums
- CPP/QPP contributions
2. What is the Difference Between a T4A and a T4?
Your income from employment is displayed on your T4 slip. A T4A, on the other hand, is a summary of your income from self-employment.
3. Who Gets a T4A in Canada?
You must fill out a T4A form if you pay other amounts for employment-related purposes or for a contract for services to a self-employed business, or entity – an independent contractor who is not an employee.