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should consult a qualified professional.
Employment income is included on a T4 for the year in which
it is received, not earned. If a payment is made in
January 2017 for wages earned in December 2016, this amount will be reported on the
2017 T4, not on the 2016 T4. One exception to this is
related to employee trusts, which will not affect most employees. Income
from an employee trust is reported on a T4 for the period in which the income
was allocated to beneficiaries by the trustee, not for the
period in which any payment was made to beneficiaries.
T4 and T4A slips must be distributed, and T4 and T4A returns
must be filed, on or
before the last day of February following the calendar year to which the slips
apply. If the last day of February falls on a Saturday or Sunday or
public holiday, the tax slips and returns are considered on time if postmarked on the next
business day. Depending on the number of slips involved, employers can be penalized
from $5 to $75 per day late, with a minimum penalty of $100 and a maximum penalty of
$7,500. See link at bottom, to Canada Revenue Agency (CRA) page re
The employee should be provided 2 copies of the T4,
preferably printed on one sheet (CRA Web Forms does this automatically).
This can be done by:
mail to the employee's last known address
delivery in person
electronic delivery, if you have the employee's
consent in writing or electronic format
The Federal 2017
Budget proposes to eliminate the need for the employee's consent prior to
distributing T4s electronically to current active employees. However,
sufficient privacy safeguards must be in place before electronic T4s can be
sent without express consent, and employers must issue paper T4s to employees
who request them.
A T4 slip must be completed for each individual who
received remuneration during the year if:
CPP/QPP contributions, EI premiums, income tax, or Quebec PPIP premiums had to be deducted from the remuneration, or
the remuneration was more than $500
An exception to the $500 limit is when employees are
provided with taxable group term life insurance benefits. In this case,
T4s must always be prepared, even if the total remuneration paid in the
calendar year is less than $500. When former employees or retirees are
provided with such benefits, a T4A slip must be completed.
What is Included in Remuneration?
Remuneration reported in box 14 (employment income) of the T4 slip includes:
salary or wages
tips or gratuities
executor's and administrator's fees received to
administer an estate (unless the administrator or executor acts in this
capacity in the regular course of business)
value of taxable benefits, including any GST/HST or
other applicable taxes
amounts paid under a supplementary unemployment benefit
plan (SUBP) that do not qualify as a SUBP under the Income
Tax Act, including top-ups for maternity, parental, or compassionate care
payments out of an employee benefit plan (EBP)
amounts that a trustee allocated under an employee
Other types of remuneration that must be
reported on a T4 slip, but are not included in box 14 include
amounts paid to the following workers, if they work for you but are not your
An employer can
file up to 100 T4 slips using Canada Revenue
Web forms. No software is required - the T4 slips
are prepared online. Note that you no longer need to
wait for a new web access code to file your T4s, T5s or other
information returns online. You can use the web access code
provided to you in 2012. However, if you log into My Business Account
or Represent a Client and select to file a return, no web access code will be
required. If you are not using My Business Account or
Represent a Client and you've forgotten or misplaced
your code, you can retrieve it online at Online
Web Access Code.
Slip re Election to Stop Contributing to CPP - Pensionable and
Insurable Earnings Review (PIER)
When a Canada Pension Plan recipient age 65 to 70 has elected to
stop contributing to the CPP by completing and
submitting form CPT30,
box 28 on the T4 (CPP/QPP exempt) should be left blank, if
there are pensionable earnings paid in the year before the
election took place. If the total pensionable earnings in
the year is zero, then indicate CPP/QPP exempt in box 28.
See the CRA
instructions for Box 28.