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How to prepare and submit T4 slips and summary

SOLVEDby QuickBooksQuickBooks Online716Updated 6 days ago

T4 slips are used to report all income you paid your employees over the previous calendar year to the Canada Revenue Agency (CRA). We'll show you how to prepare and submit your slips.

T4 slips: When you should file

You'll need to fill out T4 slips for your employees if you:

  • Paid an employee more than $500
  • Deducted Canada Pension Plan (CPP) contributions, Québec Pension Plan (QPP) contributions, Employment Insurance (EI) premiums, Provincial Parental Insurance Plan (PPIP) premiums, or income tax
Note: You'll need to provide your employees with a T4 slip for each province or territory they worked in for your company.

If you're not sure how to report a specific benefit or amount on the T4 slip, consult an accountant or the CRA.

Tips for income reporting

Types of income that need to be reported on T4 slips:

  • Salary, wages (including pay in lieu of termination notice), tips or gratuities, bonuses, vacation pay, employment commissions, gross and insurable earnings of self-employed fishers, and all other remuneration you paid to employees during the year (see Box 14 – Employment income for a detailed list)
  • ​Taxable benefits or allowances
  • Retiring allowances
  • Deductions you withheld during the year
  • Pension adjustment amounts for employees who accrued a benefit for the year under a registered pension plan (RPP) or deferred profit sharing plan (DPSP)
Note: You have to report income on a T4 slip for the year during which it was paid, regardless of when the services are performed or if the employee is deceased. For example, if you pay your employee in January 2023 for income they earned in December 2022, you'll have to report that income on their T4 slip for 2023 since that's the year it was paid.

Types of income that should not be reported on T4 slips:

  • Pensions, lump-sum payments, annuities, or other income (including amounts paid to a proprietor or partner of an unincorporated business)
  • Fees (except for director fees), commissions, or other amounts to a nonresident for services rendered in Canada, other than employment situations
  • Amounts from a retirement compensation agreement
  • Amounts paid to subcontractors for goods and services rendered in connection with construction activities, when construction is the primary source of income for your business

Review your company information

The first thing you must do to prepare T4s is to verify key company information.

  1. Select Settings ⚙, then Payroll Settings (Take me there).
  2. Select Federal Taxes on the Payroll Settings page.
  3. Enter your CRA-assigned CRA Payroll Number and T4 Transmitter Number.
  4. Select OK.

Review your employee information

Next, verify key employee information.

  1. Go to Payroll and select an employee.
  2. Select Edit ✏ to add or edit this information:
    • Employee data
    • Employee benefit information
    • Payroll deductions
  3. Select Done.

Prepare T4 slips

Complete a T4 slip to give to every employee.

  1. Go to Taxes and select Payroll tax (Take me there).
  2. Select the Filings tab and then Year-end forms.
  3. Select T4 slip (employer).
  4. Select the tax year you want to view T4 slips for.
  5. Select View to open and review the slips in Adobe Acrobat.
  6. Make sure all the information is correct. You can download or print the slips using the icons in Adobe Acrobat, then close the window.

Give each of your employees their T4 slip in one of the following ways by the last day of February:

  • One copy sent electronically (by secure email or workforce employee portal). You must have the employee's consent, in writing or electronic format, to send T4 slips electronically
  • Two copies delivered in person
  • Two copies sent by mail to the employee's last known address

Send T4 slips to your employees using Workforce

  1. Invite your employee to Workforce:
    1. Go to Payroll, select Employees (Take me there), and then select the employee you want to invite.
    2. Select the Edit the Personal info widget.
    3. Enter the employee's email address and select Save.
    4. Your employee will receive an invitation by email.

      Once your employee accepts the invitation and logs into Workforce, they're ready to receive their T4 slip. For more information, see Invite employees to access pay stubs and time sheets online.

  2. Send a T4 slip to an employee:
    1. Go to Taxes and select Payroll tax (Take me there).
    2. Select the Filings tab and then Year-end forms.
    3. Select Employee copy of T4 slip.
    4. Select View. Another tab will open with the PDF version of the T4 slip.
    5. If the T4 slip is correct, select Send to employee on the T4 slip for employee page.

Submit your employee's T4 summary to the CRA

Here's how to submit your employees' T4 summaries to the CRA:

  1. Go to Taxes and select Payroll tax (Take me there).
  2. Select the Filings tab and then Year-end forms.
  3. Select T4 slip (employer).
  4. Choose the period and select View. The T4 summary (employer) opens in a new tab.
    Note: It's a good idea to print or save a copy for your records.
  5. Go back to QuickBooks Online in the previous tab and select Submit. This will export your T4 slips as an XML file and automatically archive a copy for your records in QuickBooks Online.
  6. Go to the CRA: Filing Information Returns Electronically page on the CRA website.
  7. Select Internet file transfer. This is the only selection QuickBooks Online supports at this time.
  8. Read through the Disclaimer and select I agree.
  9. Enter the Account number (without dashes or spaces) and Web access code (case sensitive) you received from the CRA.
  10. Select Next.
  11. Browse to find the T4 XML file on your computer and upload it to the CRA website.
  12. Submit your return.
    Note: The T4 XML file generated by QuickBooks Online also includes your T4 Summary. You don't need to submit your T4 Summary separately to the CRA.

It's a good idea to keep a record of the date and time the form was submitted.

  • If you are mailing your forms to the CRA instead of using the XML file generated by QuickBooks Online, you'll need to send printed versions of the T4 slips (employer) for all of your employees as well as the T4 Summary. You can find the T4 Summary form on the CRA website.
  • Your T4 Summary must be filed with the CRA by the last day of February of the following year. If you miss the filing deadline, you could be faced with penalties from the CRA.

Additional Resources

Learn more from the CRA:

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