The Canadian Employer’s Guide To The T4


These new reporting requirements are in addition to the existing requirement to report employment income in Box 14, “Employment Income” or Code 71, “Indian – Employment”. Follow this simple guide to how to save money toward your financial goals, like paying off debt or buying a house. Welcome to Ask An Accountant, where we take your payroll and accounting queries and help you make sense of them. Whether you’re doing payroll for the first time or you’re a seasoned veteran, we’re here to make sure you never have to worry about something going over your head. We’re an online bookkeeping service powered by real humans. Bench gives you a dedicated bookkeeper supported by a team of knowledgeable small business experts.If the T4A is being issued to account for self-employment income, any amounts you were paid will be printed in this box. You must report your net self-employment income on lines 135 to 143 of your T1 return. Additional boxes may be included to account for a wide range of information and income sources, which you can learn about from the CRA. When it comes to understanding your T4A slip, the most important thing to remember is that you must report all of the income you receive during the tax year. Not all income you earn will be taxable, but everything must be reported to the CRA. Officially, the T4 slip is known as a Statement of Remuneration Paid.As an employer, you must complete a T4 for every employee paid over $500 in the calendar year. If you provide taxable group life insurance benefits, you must include every employee with the benefit, even if they were paid less than $500. Registering for an online account with the CRA is also a good safety measure. Because your employer sends the CRA a copy of the T4, there should be a digital copy for you to access through the CRA’s My Account portal.

What Is Employment Insurance Ei?

We’re here to take the guesswork out of running your own business—for good. Your bookkeeping team imports bank statements, categorizes transactions, and prepares financial statements every month. Most employers choose to file online and if you are returning more than 50 T4s, you must file online. Box 40 is where you fill in all the benefits you paid the employee —such as parking expenses, cell phone or food allowances. Expenses, such as allowances for food or travel, are not pensionable earnings. Some, like name and address, are self-explanatory, so we’re just going to run through some of the less straightforward boxes, and how to address them.These boxes list the amount of money contributed to CPP or QPP. In most cases, both boxes will not be populated unless the employee worked in Québec and another province. This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein. These boxes refer to Canada Pension Plan and Quebec Pension Plan contributions. Usually, only one will be filled in, unless your employee worked in more than one province.

the canadian employer's guide to the t4

Welcome and thank you for your interest in Flambeau Outdoors. Due to COVID-related disruptions and an extraordinary increase in demand, all orders will be processed in the order they are received but shipping may be delayed. We appreciate your patience as we work to ship your purchase as quickly as possible. Please contact our customer support team via phone or email for any additional assistance.If you reject the proof, you will be able to upload a new one after. Your title will appear on the outside of your shipment to help you identify the product inside. You can enter a unique name and a name of differentiates from the other items in your cart that are the same specs. You may also give your title the version number and a cost centre or a PO number. How do you know if messages or calls from the CRA are genuine?

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Each period, which aligns with periods relating to COVID-19 benefit eligibility, pertains to the day the employee was paid and not necessarily the period of work the payment covered. For example, if an employer is reporting employment income for the period of April 25 to May 8, payable on May 14, that information would be reported under Code 58.

  • The file must be supplied with the PANTONE® inks included; if there are any other colours present it will increase file processing time.
  • Note that your T4 slip may not be available right away, as the CRA needs time to process it once they receive it from your employer.
  • You will not receive KPMG subscription messages until you agree to the new policy.
  • Enter the employee’s total insurable earnings for the year—or 0 if the employee earned no insurable earnings.
  • Employers have to make sure to send T4 tax forms by the end of February so that employees have time to file their taxes.
  • Usually, T4As are issued by established companies that think of you as a consultant rather than a service provider.

Enter this amount on line 206 of your T1 return.Box 55 is dedicated to your Provincial Parental Insurance Plan premiums. If you were a resident of Quebec on December 31 of the tax year, see line 375 of the tax guide for more information. If you were not a resident of Quebec on December 31 of the tax year, see line 312 for more information.Box 56 is dedicated to PPIP insurable earnings.

Box Title

This only applies if your employment contract states that you are responsible for these expenses, and you do not receive an allowance to cover them. Its official title is a “T4 Statement of Remuneration Paid” form, though most Canadians just refer to it as a T4 slip. No matter what you call it, the T4 is a tax document that summarizes how much you’ve earned over the past year. Your T4 slip will also show any required deductions, such as employment insurance premiums or income tax, made by your employer. If you have multiple jobs, you should receive multiple T4s, one from each employer. Securely send a number of T4 slips with Staples T4 Envelopes. These tax envelopes are ideal for mailing standard income tax forms and more.

Can you claim box 85 on your T4?

T4 slip – Box 85 – Employee-paid premiums for private health service plan. You paid premiums to a private health insurance plan to increase your coverage of the health insurance plan paid by your employer. This premium will be entered in box 85 of your T4 slip.Box 46 contains any charitable donations made through Payroll. For donations made outside the office, the charity must issue the employee a separate tax receipt. This amount is usually 1.63% of Box 24 , and only includes the employee’s portion of contributions. We’ll do one month of your bookkeeping and prepare a set of financial statements for you to keep.

Boxes For Other Information

Thinking of starting a family as a self-employed Canadian? Learn more about Canada’s Employment Insurance Program to qualify for maternity leave benefits. Since the last time you logged in our privacy statement has been updated. We want to ensure that you are kept up to date with any changes and as such would ask that you take a moment to review the changes. You will not continue to receive KPMG subscriptions until you accept the changes. A savings account is a bank account that lets you store your money securely while typically earning interest.

Does Box 14 have Box 67 on T4?

No. On a T4 slip, box 67 amounts are not included in box 14.If you earned employment income at any point during the year, you can expect to receive a T4 slip from your employer either in person or in the mail. Many employers today also make their T4 slips available online. This slip details the income you earned from a specific employer, along with any deductions, such as income tax, employment insurance, and Canada Pension Plan contributions. If you worked for more than one employer during the year, you should receive a separate T4 slip from each one. If you worked in Quebec, you should also receive an RL-1 slip from your employer. Like the T4, the RL-1 slip details your Quebec income and amounts deducted from your pay for Quebec-based programs, such as Quebec income tax and QPP contributions. If you have lost or misplaced a T4 or RL-1 slip, or did not receive a slip you were expecting, get in touch with your employer.In this box, enter the EI premiums that you deducted from your employee. As an employer, you must deduct CPP or QPP contributions from your employees’ pay, and make a matching contribution. The contributions each year are calculated as a percentage of all pay between an exempt minimum allowance ($3,500 for 2019) and a maximum cap.If you believe that there is an error on your T4 slip, get in touch with the payroll department of the employer who issued the slip. If there is something you are unsure of, ask the payroll office of your employer or a tax professional, and they should be able to explain it to you. For more information on T4 tax forms, please consult the Canada Revenue Agency website.If you are mailing your T4 slips, the envelope must be postmarked no later than the deadline. If the last day of February falls on the weekend, the deadline becomes the next business day. Fully gummed flap maintains secure bond to prevent peeling, and security tinting ensure privacy. This is an option to review the proof from a web interface after you place your order.The T4 has multiple information boxes for an employer to fill in. Each box has a two-digit box number, a three-digit line number, and a label.

the canadian employer's guide to the t4

Net commissions should go on line 139.Box 22 is dedicated to income tax deducted at the source. If applicable, enter this amount on line 437 of your T1 return.Box 24 is dedicated to annuities. If applicable, report this amount on line 115 of your T1 return.Box 48 is dedicated to fees for services.This date is an ESTIMATION of when your order will ship or be available for pickup, depending on the option selected. As well, the production turnaround starts after the proof is approved, not when the order is placed. If the order is being shipped, the shipping time will need to be taken into account, and will depend on the shipping service selected. If you are employed by a Canadian company, you’ll receive a T4 slip. The business you work for will also send a copy of the T4 slip to the Canadian Revenue Agency, or CRA. This can include things such as parking benefits, cell phone allowances, transit passes, etc.If you received pension or retirement income during the year, these amounts should also be reported on a T4A. The same is true for academic scholarships and bursaries. Note that amounts received for scholarships are generally not taxable. However, you must still report scholarship income on line 130 of your tax return.