When are T4 slips required?
Employees must be given their T4 slips 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, the due date is not moved to a later date. Employers can be penalized $25 per day for each failure to distribute the T4, with a minimum penalty of $100 and a maximum penalty of $2,500.
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
- or electronic delivery (e.g. by email) if you have the employee’s consent in writing or electronic format
A T4 slip must be completed for each individual who received remuneration during the year if:
- CPP contributions, EI premiums or income tax, 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
- severance pay
- tips or gratuities
- vacation pay
- employment commissions
- 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
Filing T4 Slips
An employer can file up to 50 T4 slips using Canada Revenue Agency’s T4 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 www.cra.gc.ca/webaccesscode, which also provides a phone number to call for retrieval.
Source: Tax Tips.ca – www.taxtips.ca/smallbusiness/t4slips.htm
One last thing to check – be sure your CRA payroll liability Account Balance (payments made throughout the year) matches with your Balance of all T4’s to be filed before submitting to the CRA.
Remember, if you need help with T4 filing, you can always call us!
Preferred Client Services 780-439-9457