What is a T4 slip and how can you get yours?

In Canada, the T4 slip is an indispensable document for individuals, encapsulating proof of employment income. This form holds paramount significance for tax filing purposes, as it meticulously details the income received by an individual and the deductions made over the tax year. Employers are tasked with the preparation and distribution of T4 slips to their employees, simultaneously ensuring that a copy is dispatched to the Canada Revenue Agency (CRA) for the sake of accurate income declaration.

Deciphering the T4 Slip

At the outset, the T4 slip may seem daunting with its comprehensive breakdown of an individual's employment earnings and the corresponding deductions. However, a closer examination reveals its structured approach to documenting various income components, such as wages, bonuses, and other remunerations, alongside deductions like federal and provincial taxes, contributions to employment insurance, and pension plans. This document is essential not only for validating an individual's income but also for calculating the taxes due or anticipating potential refunds.

What does T4 slip include?

On first glance you might feel overwhelmed by seeing the T4 slip. But when you know what each section means, it becomes slightly easier to tackle the slip.

The T4 slip includes important information such as –

• Box 10 – Province of employment
• Box 12 – Social insurance number
• Box 14 – Employment income - Line 101
• Box 16 – Employee’s CPP contributions – Line 30800 and Line 22215
• Box 17 – Employee’s QPP contributions – Line 30800 and Line 22215
• Box 18 – Employee’s EI contributions – Line 31200
• Box 20 – RPP contributions – Line 20700
• Box 22 – Income tax deducted – Line 43700
• Box 24 – EI insurable earnings
• Box 26 – CPP/QPP pensionable earnings
• Box 28 – CPP/ QPP, EI, and PPIP exemptions
• Box 44 – Union Dues – Line 21200
• Box 46 – Charitable donations – Line 34900
• Box 52 – Pension adjustment – Line 20600
• Box 55 – Employee’s PPIP premiums

• If you were a resident of Quebec on December 31^st of the tax year – Line 31205
• If you were a resident of a province or territory other than Quebec on December 31^st of the tax year – Line 31200

• Box 56 – PPIP insurable earnings
• Box 62 – Employment commissions – Line 101200
• Box 66 – Eligible retiring allowances – Line 13000
• Box 67 – Non-eligible retiring allowances – Line 13000
• Box 71 – Indian (exempt income) – Employment
• Box 77 – Workers’ Compensation Benefits (WCB) repaid to the employer – Line 22900
• Box 85 – Employee-paid premiums for Private Health Services Plans (PHSPs) – Line 33099

T4 slips are crucial for individuals when filing their personal income tax returns, as they provide a summary of their employment income and deductions. They help ensure accurate reporting and compliance with tax regulations.

As of 2021, the CRA has added boxes 57 – 60 in T4 slips. This what they signify –

• Box 57 – Employment income – March 15 to May 9
• Box 58 – Employment income – May 10 to July 4
• Box 59 – Employment income – July 5 – August 29
• Box 60 – Employment income – August 30 – September 26

The government of Canada uses this information to verify your income and the Covid-19 benefits that you have received.

How can I get my T4 slip?

Most employers are required to distribute T4 slips to their employees by the end of February each year. These slips can be delivered through postal mail, electronically, or directly in person. With the digital age advancing, a significant shift towards electronic delivery of T4 slips is observed, where employees can download these documents by logging into their workplace’s dedicated portal using their specific employee login details. It's important to keep an eye out for any emails or notices from your employer regarding the steps to access your T4 slip electronically.

For those who have registered for a CRA My Account, the process of obtaining your T4 slip becomes even more streamlined. As soon as your employer submits your T4 information to the Canada Revenue Agency (CRA), these slips are made accessible through your online account, usually by mid-March. This platform not only provides access to the current year’s T4 slip but also to those from previous years, ensuring you have all necessary documentation for tax purposes at your fingertips.

Different types of T4 slips

Apart from the basic T4 slip, there are 6 types of T4 slips that include –

• T4A – Statement of Pension, Retirement, Annuity, and Other Income
• T4A (OAS) – Statement of Old Age Security
• T4A(P) – Statement of Canada Pension Plan Benefits
• T4E – Statement of Employment Insurance and Other Benefits
• T4RIF – Statement of income from a Registered Retired Income Fund
• T4RSP – Statement of RRSP Income

I received Covid – 19 benefits, so which T4 slip do I need?

The Covid -19 benefits that you received from the CRA will be consolidated and reported on a single T4 slip. If you reside in Quebec these benefits will be listed on your RL-1 slip. This includes various benefits like –

• Canada Emergency Response Benefit (CERB)
• Canada Emergency Student Benefit (CESB)
• Canada Recovery Benefit (CRB)
• Canada Recovery Caregiving Benefit (CRCB)
• Canada Recovery Sickness Benefit (CRSB)

What if I make a mistake while filling my T4 slip?

It is quite common that you make a mistake while filling your T4 slip. If you think you have made an error, it is best to get in touch with your employer as soon as possible. If the error is not rectified by the time your tax deadline approaches, you are required to complete your taxes based on an estimation and then make the required changes later.