When to complete a T4 slip

Most amounts paid to an individual by an employer are referred to as remuneration. You have to complete a T4 slip to report the following:

  • 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 (see Box 14 - Employment income for a detailed list) you paid to employees during the year;

  • taxable benefits or allowances;

  • retiring allowances;

  • deductions you withheld during the year; and

  • pension adjustment (PA) amounts for employees who accrued a benefit for the year under your registered pension plan (RPP) or deferred profit sharing plan (DPSP).

Notes

You have to complete T4 slips for all individuals who received remuneration from you during the year if:

  • you had to deduct CPP/QPP contributions, EI premiums, PPIP premiums, or income tax from the remuneration; or
  • the remuneration was more than $500.

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 rendered, or if the employee is deceased. For example, if a pay cheque dated in January covers income earned in the last days of December, that income must be reported on the T4 slip for the year that starts in January, since that is the year it was paid.

If you provide employees with taxable group term life insurance benefits, you always have to prepare T4 slips, even if the total of all remuneration paid in the calendar year is $500 or less.

If you provide former employees or retirees with such benefits, you have to prepare a T4A slip. For more information, see Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary.

If you provide either an employee, a former employee, or a non-resident employee with security options benefits, you have to prepare a T4 slip. For more information, go to Security options.

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