Table of contents:

• What is a T4?
• When to issue a T4?
• Items to report on a T4 slip
• Items you don't report on a T4 slip
• T4 employer considerations
• How to complete a T4
• When do you have to file T4s?
• T4 employee considerations
• Streamline T4 prep and filing
• FAQs

What is a T4?

While the T4 is small in size, it packs in a lot of important information.

A T4, known as a Statement of Remuneration Paid, identifies how much you pay your employees in a calendar year. As an employer, you want to know what you're required to report and where to report it on the form. As an employee, it's important to understand what the information on your T4 means.

Here's everything you need to know about to complete a T4 as an employer and how to interpret and use the information as an employee. 

When to issue a T4?

You have to fill out a T4 if you pay your employees a salary, wages, bonuses, vacation pay, taxable benefits, retiring allowances, fishing income, or any other form of remuneration.

You also have to file a T4 slip if any of the following apply:

• You deduct CPP/QPP, EI, PPIP, or income tax
• The total remuneration you pay to your employee in a calendar year is more than $500
• You provide group term life insurance 

Items to report on a T4 slip

A T4 slip contains a lot of information. As an employer, you're responsible for reporting the relevant items as outlined by the Canada Revenue Agency.

Items may include:

• Salary or wages
• Tips or gratuities
• Bonuses
• Vacation pay
• Employment commissions
• Gross and insurable earnings for self-employed fishers
• Taxable benefits
• Taxable allowances
• Retiring allowances
• Deductions withheld during the year
• Pension adjustment (PA) amounts for employees who accrued a benefit for the years under your registered pension plan (RPP) or deferred profit sharing plan (DPSP)
• Security option benefit provided to an employee, former employee, or non-resident employee. 

Items you don't report on a T4 slip

The CRA also outlines the items you don't need to report.

These include:

• Pensions, lump-sum payments, annuities, or other income — use T4A
• Paid amounts from retirement compensation agreement — use T4A-RCA
• Paid fees (except director fees), commissions, or other amounts to a non-resident for services in Canada — use T4A-NR slips
• You're an employer and construction is your primary source of business income — use T1204 or T5018 

T4 employer considerations

To help ensure the accuracy of information on your employee T4 slips, the CRA provides several guidelines, including:

• Complete a T4 return for each payroll account
• Report income for the year it was paid, regardless of when it was earned
• Complete a T4 slip for each province/territory your employee worked in during the year
• Report using dollars and cents (except pension amounts, which only use dollars)
• Box 14 (employment income) allows a maximum of 10 digits
• Report all amounts in Canadian dollars, even if they were paid in another currency

There are also rules for what you shouldn't do when completing a T4 slip, including:

• Don't use negative dollar amounts
• If a box doesn't have a value, leave it blank
• Don't change any headings
• Don't use hyphens or dashes between numbers
• Don't enter the dollar sign ($)

How to complete a T4

When it comes time to complete T4s for your employees, here's the information you need to include:

Identification information

• Year. The four-digit year when the payment was made to your employee.
• Employer name. Either your legal name, operating or trade name, and address.
• Employee's name and address. In capital letters, enter the employee's last name and then first name. Don't include titles such as Mr., and Mrs. Also include the employee's address.
• Province of employment (box 10). Enter the provincial or territorial abbreviation of employment. For instance, AB for Alberta, ON for Ontario. This isn't always the same as the employees province of residence.
• Social insurance number (SIN). Enter your employee's nine-digit SIN.
• CPP/QPP (box 28). Enter exemption's for CPP contributions, EI premiums, and Provincial Parental Insurance Plan (PPIP) premiums. If you didn't have to withhold these amounts, put an X.
• Employment code (box 29). Fill out this box if your employees have specific employment codes associated with their job, including:
• 11- Placement or employment agency
• 12 - Self-employed taxi driver or driver of other passenger-carrying vehicle
• 13 - Barber or hairdresser
• 14 - Prescribed salary deferral plan or arrangement
• 15 - Seasonal agricultural workers program
• 16 - Detached employee
• 17 - Self-employed fishing income
• Employer-offered dental benefits (box 45). As of 2023, it's mandatory to indicate if your employee or their family members were eligible for dental insurance, or dental coverage of any kind. Codes to enter include:
• 1. Not eligible for any coverage
• 2. Payee only
• 3. Payee, spouse, and dependent children
• 4. Payee and their spouse
• 5. Payee and their dependent children
• Employer's account number (box 54). Enter your 15-character payroll account number. Don't include this on the copies you give employees.

Income and source deductions

• Employment income (box 14). Here you report your employee's total income. This includes salary, wages, commissions, taxable benefits, tips and gratuities, and more.
• Employee's CPP or QPP contributions (box 16/17). Report the amount deducted for CPP. If you didn't deduct CPP, leave the box blank.
• Second CPP or QPP contributions (box 16A/17A). Report any secondary contributions, if applicable.
• Income tax deducted (box 22). Report how much federal, provincial (except Quebec), and territorial tax you deducted.
• CPP/QPP pensionable earnings (box 26). Report total pensionable earnings which is the amount you use to calculate your employee's CPP/QPP contributions in box 16 and box 17.
• Provincial parental insurance plan (PIPP) premiums (box 55). Report any deductions for employee's share of PIPP premiums. Don't report the employers share.

Registered pension plan (RPP) or deferred profits sharing plan (DPSP)

• RPP contributions (box 20). Report amounts including instalment interest if your employee contributed to an RPP.
• RPP or DPSP registration number (box 50). Enter the seven-digit registration number from the CRA.
• Pension adjustment (box 52). Report the amount in dollars of any pension adjustment (PA) under an RPP or DPSP.

Union dues or charitable donations

• Union dues (box 44). Report any amount deducted for tax-deductible union dues.
• Charitable donations (box 46). Report any amounts deducted for donations to registered Canadian charities.

Other information

There's also a box on the T4 slip for "other information." Here you can enter codes and amounts related to employment commissions, deductions, taxable allowances and benefits, and more.  

When do you have to file T4s?

As an employer, it's up to you to keep track of when to file your employees T4s. For most employees, the 2024 T4 filing date is February 28, 2025.

You have to provide your employees with their T4 slips and file your T4 return with the CRA on or before this date.

Late filing penalty

If you file your T4 late, the CRA might charge you a penalty. The amount depends on the number of T4s you file late. The minimum penalty is $100.

Here are the penalties for late T4 filings.

How to file your T4 slips

To avoid delays, the CRA recommends filing T4s electronically.

If you have more than five informational returns in a calendar year, you have to file electronically. Failing to do so can result in a penalty from the CRA. The minimum penalty is $125.

How to give your employees their T4 slips

You have a few different options for how to get your employees their T4s.

Options include:

• Email. You have to get written consent from your employees if you want to email their T4.
• Electronic portal. If you have a secure portal with a secure printer, you can share slips this way. If your employee asks for a paper T4, you must provide it.
• Paper. If you provide paper T4s, you have to include two copies, either in person or by mail. For security, don't include your payroll account number in box 54. 

T4 employee considerations

As an employee, you might have questions about your T4 as tax time approaches, such as:

Why is a T4 important?

If you're an employee who makes $500 or more in a calendar year, you can expect to receive a T4. You need your T4 to file your taxes.

Your T4 slip lists a ton of important information, including how much income you made, mandatory deductions like EI, CPP/QPP, as well as any union dues, pension adjustments, or charitable donations.

When can you expect your T4 slip?

Your employer must provide your T4 slip on or before February 28, 2025. You can typically access your slip electronically, through your company's online payroll portal, or by email. You can also request a paper copy which you may receive in person or through the mail.

Can I have more than one T4 slip?

Yes, you can have multiple T4 slips. You should receive one from every employer that you worked for in a calendar year.

T4 vs T4A: What's the difference?

While the T4 and T4A sound similar, they are used for different purposes.

If you're an employee, your income is reported on a T4. If you're self-employed, your income is reported on a T4A.

The T4A, also known as the Statement of Pension, Retirement, Annuity, and Other Income is responsible for reporting all of the income that doesn't belong on a T4.

If you work for a company as an employee and you also have a side hustle, you'll receive a T4 and you'll also need to report your self-employment income on a T4A.

What income to report on a T4A

According to the CRA, you or the payer (employer, trustee, estate executor, administrator, or corporate director) should report the following sources of income on your T4A:

• Pension or superannuation
• Lump sum payments
• Self-employed commissions
• Annuities
• Patronage allocations
• Registered education savings plan (RESP) income payments
• RESP educational assistance payments
• Fees or other amounts for services
• Income replacement payment under the Veterans well-being Act
• Research grants
• Payments from a registered disability savings plan (RDSP)
• Wage-loss replacement plan payments if not required to hold CPP contributions and EI premiums
• Death benefits
• Certain benefits paid to partnerships or shareholders 

Streamline T4 prep and filing

As a business owner, you have enough tasks to do without worrying about preparing and submitting your employee's T4 slips.

It's important to know the details of what a T4 slip is, how to fill them in, and how to file. Now that you fully understand the government's expectations, let an accounting solution like QuickBooks Online help you streamline your year-end forms, including T4s.