What is a T4 Slip?
A T4 slip, formally known as the T4 Statement of Remuneration Paid, is a critical document for Canadian employees and employers. It details employment earnings and deductions within a calendar year.
Employers are mandated to issue T4 slips to employees who received remuneration (or earnings) in the past year. These slips are then used by employees for their annual tax filings with the Canada Revenue Agency (CRA).
Key Components of a T4 Slip:
- Direct Payments and In-Kind Contributions: Includes all forms of direct monetary payments to the employee, as well as non-monetary compensations like in-kind contributions.
- Deductions: Details Income Tax, Canada Pension Plan (CPP), and Employment Insurance (EI) contributions made by the employer directly to the government on behalf of the employee.
“Remuneration” broadly covers all forms of payment or compensation for services rendered in an employer-employee relationship. This can encompass salary, hourly wages, bonuses, commissions, tips, gratuities, RRSP contributions, medical benefits, car allowance, vacation pay, and other relevant forms of compensation.
“Remuneration” is a fancy way of saying, payment compensation received/paid for services rendered. In an employer-employee relationship, remuneration can include salary, hourly wages, bonuses, commissions, tips, gratuities, RRSP contributions, medical benefits, car allowance, vacation pay or other relevant forms of compensation.
Employer T4 Responsibilities:
Employers must distribute T4 slips to their employees and T4 summaries to the CRA for the previous calendar year by the last day of February in the current year. The actual deadline fluctuates slightly each year. If the last day of February is on a weekend, the deadline extends to the next business day. The filing is considered timely if received or postmarked on or before the due date.
T4 Deadlines By Year:
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.
- 2024 – Thursday, February 29, 2024
- 2023 – Tuesday, February 28, 2023
- 2022 – Monday, February 28, 2022
- 2021 – Monday March 1, 2021
- 2020 – Monday March 2
- 2019 – Thursday February 28
- 2018 – Wednesday February 28
- 2017 – Tuesday February 28
- 2016 – Monday February 29
- 2015 – Monday March 2
If you do not receive your T4 slip by the first Monday in March, you should request it from your employer. In special cases, such as business bankruptcy, your point of contact may be a Bankruptcy Trustee. If necessary, you can also use your pay slips to manually calculate totals and deductions for tax filings.
On some occasions, there are exceptions. For example, if a business has declared bankruptcy, your new point of contact is likely to be a Bankruptcy Trustee. If you do not have the option of talking to someone accountable, you can potentially use your pay slips (which are given to you every time you are paid as an employee) to calculate the totals & deductions manually for your annual tax filings.
How Employees Use The T4 Slip:
Canada’s self-reporting tax system requires employees to report all earnings and pay taxes accordingly. The T4 slip provides an accurate record of earnings and deductions from employers, which is essential for filing taxes. If you have multiple jobs, you’ll receive a T4 from each employer, and you must declare all income and deductions from these slips in your tax filing.
Failing to report accurate and complete T4 information can result in fines and penalties.
Creating T4 Slips and Summaries
As an employer using PayEvo, you don’t need to worry about the complications of year-end submissions. Learn how to generate and submit your T4s in 10 minutes or less here.
Understanding and properly utilizing your T4 slip is essential for accurate and compliant tax reporting in Canada. As we move into 2024, it’s crucial to keep abreast of any changes in tax regulations and deadlines. Employers must ensure timely distribution of T4 slips, and employees should be diligent in using these slips for their tax filings.
Remember, the T4 is more than just a document; it’s a key part of fulfilling your fiscal responsibilities. By staying informed and proactive, both employers and employees can navigate the tax season with confidence and ease.
Always seek advice from tax professionals if you’re unsure about any aspect of your T4 slip or tax obligations, and check the CRA website for the latest updates.
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