TaxTips.ca - T4 Slips - Requirements and Timing (2024)

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T4 Slip is for Income Received, Not Earned, in the Year

T4 Slip Distribution

When is a T4 Slip Required?

What is Included in Remuneration?

Filing T4 Slips - Electronic Filing Required for 6or More Slips

T4 Slip re Election to Stop Contributing to CPP - Pensionable and Insurable Earnings Review (PIER)

Additional T4 and T4A SlipFields 2023 - new for 2023 T4 and T4A slips

2020 Additional Reporting

T4 Summary re 2020 10% Temporary Wage Subsidy (TWS)

TaxTips.ca Resources

Canada Revenue Agency (CRA) Resources

T4 Slip is for Income Received, NotEarned, in the Year

Employment income is included on a T4 for the year in which it is received, not earned, as per s. 5(1) of the Income TaxAct, which states: "a taxpayer's income for a taxation year from an office or employment is the salary, wages and other remuneration, including gratuities, received by the taxpayer in the year." For example, if payment is made in January 2024 for wages earned in December 2023, this amount will be reported on the2024 T4, not on the 2023 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.

Due date for T4 slips to be filed and given to employees: Last day ofFebruary, but if this falls on a Saturday or Sunday, the the due date is thenext business day.

T4 and T4A Slips & Returns - Timing/ Penalties

T4 and T4A slips must be distributed, and T4 and T4A returnsmust 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 orpublic holiday, the tax slips and returns are considered on time if postmarked on the nextbusiness day. Employers can be penalized $25 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 repenalty.

T4 Slip Distribution

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:

TaxTips.ca - T4 Slips - Requirements and Timing (1)

mail to the employee's last known address

TaxTips.ca - T4 Slips - Requirements and Timing (2)

delivery in person

TaxTips.ca - T4 Slips - Requirements and Timing (3)

electronic delivery using an employer or payer's secure electronic portal, without obtaining consent from the recipient first, unless:

	the recipient requested that the slips be provided in a paper copy.
	the recipient cannot reasonably be expected to have access to the slips in electronic format at the time the slips are issued.
	the recipient is an employee who is on extended leave or is a former employee at the time that the T4 slips are issued.

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email, but consent must be received from employees or recipients, in writing or in electronic format, before sending the slips.

See CRA's Distribute the Slips web page.

When is a T4 Slip Required?

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, for 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.

CRA's January 2018 announcement indicated that, for the 2018 and subsequent taxation years, a T4A will only be required for taxable group term life insurance benefits in excess of $50, if it is the only income being reported on a T4A slip. Confirmation of this is found in CRA's T4A slip - Information for payers - When to issue - Exceptions.

What is Included in Remuneration on a T4 Slip?

Remuneration reported in box 14 (employment income) of the T4 slip includes:

	salary or wages
	severance pay
	tips or gratuities
	bonuses
	vacation pay
	employment commissions
	honorariums
	director's fees
	management fees
	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)
	taxable allowances
	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 leave
	payments out of an employee benefit plan (EBP)
	amounts that a trustee allocated under an employee trust.

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 employees:

- drivers of taxis or other passenger-carrying vehicles

- barbers or hairdressers

The T4s are completed for these self-employed workers for purposes of EI and PPIP only.

There are special reporting requirements for the following workers, depending on the work situation or type of payment:

- placement or employment agency workers

- fishers (self-employed)

Filing T4 Slips - Electronic Filing Required for 6 or More Slips

Employers who submit more than 5 information slips are required to file electronically, beginning January 1, 2024. See the August 16, 2023 news release, which includes information on the amount of penalties for non-compliance. Previously, filers with 50 or fewer information returns could file by paper. This requirement also applies to T4A, T5 and T3 slips and returns.

An employer can file up to 100 T4 slips using Canada Revenue Agency's T4 Web Forms. See their Filing Information Returns Electronically information. 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 previously. 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 - see Web access code on the Filing Information Returns Electronically page (link above).

Web Forms are usually available starting 6 am Eastern Time on the 2nd Monday of January each year.

T4 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 in theyear of the election. See the CRAinstructions for Box 28.

Additional T4 and T4ASlip Fields 2023

T4 and T4A slip changes are required in relation to the Canadian Dental CarePlan, which will provide dental coverage for uninsured Canadians with anadjusted family net income of less than $90,000.

For 2023 and subsequent year T4 and T4A slips, there is a new Box 45 (T4) orBox 015 (T4A) to be completed regarding employer-offered dental benefits. Thisbox is mandatory for all slips. In Box 45 or 015 the employer will enter a codeto indicate whether the recipient (employee or pensioner) or any of their familymembers were eligible, on December 31st of the calendar year, to access anydental care insurance, or coverage of dental services of any kind, includinghealth spending and wellness accounts, due to their current or formeremployment. Amounts of dental costs are not entered. The 5 possible codes forthe T4 or T4A new Boxes are:

1 Not eligible to access any dental care insurance, or coverage of dental services of any kind

2020 Additional Reporting

Updatefor 2020 T4 slips for all employers: In addition to reporting employment incomein Box 14 or Code 71, all employers must also use the following new informationcodes for employment income paid (not earned) in the following periods:

- Code 57: March 15 to May 9 (8 weeks)

- Code 58: May 10 to July 4 (8 weeks)

- Code 59: July 5 to August 29 (8 weeks)

- Code 60: August 30 to September 26 (4 weeks)

Note that the above codes were a requirement for all employers,not just for those employers that have received payroll related benefits.If T4 slips have been filed already without this information, then amended slipsshould be filed. However, if the 2020 T4 slips and summary were filed onor before December 22, 2020, an amended T4 will not be required. If morethan 6 "other information" codes apply to the same employee , the CRAGuide indicates that an additional slip should be used.

See the CRAInformation for employers about the new codes. The new information is tobe used to help CRA validate payments under the CanadaEmergency Wage Subsidy (CEWS), CanadaEmergency Response Benefit (CERB), and CanadaEmergency Student Benefit (CESB). The CERB eligibility periods coverMarch 15 to September 26. The CESB eligibility periods cover May 10 toAugust 29.

These amounts will be entered by employees in tax software as part of the T4data entered.

T4 Summary re 2020 10% Temporary Wage Subsidy (TWS)

The TWS for 2020 had to be reported to CRA on Form PD27, 10% Temporary Wage Subsidy Self-Identification Form for Employers.

The amount by which you reduced your remittances was deemed to be paid, so was included with the amount of your actual remittances when completing your T4 Summary.

See the February2021 Life In the Tax Lane video for more information on this, as well as theVideo Tax News article on CorrectingForm PD27 Submissions, if you have already filed PD27 and determine that theamount was incorrect.