What is a T4 form?

What is a T4 form?

In what situation do I need to file T4 information?

Money paid to an employee by an employer is typically referred to as remuneration; you need to report remuneration via a T4 slip for each employee who received remuneration if:

  1. You had to deduct CCP/QPP contributions, EI premiums, PPIP premiums, or income tax from the remuneration, or

  2. The remuneration was greater than $500.

What remuneration counts?

The kinds of remuneration that you might pay to an individual that would require a T4 include:

  • salary

  • wages (including pay in lieu of termination notice)

  • tips

  • gratuities

  • any bonuses (including discretionary and performance)

  • any vacation pay

  • commissions

  • taxable benefits or allowances (such as a gasoline allowance)

  • retiring allowances

  • deductions withheld during the year

  • pension adjustment amounts for employees who accrued a benefit under your registered pension plan or deferred profit sharing plan

  • the gross and insurable earnings of self-employed fishers

Of note:

  • For the purposes of a T4, it is irrelevant when the service that received remuneration was performed; income needs to be reported the year it was paid.

  • You must complete a T4 for all individuals with taxable group term life insurance benefits, even if they received less than $500 in remuneration from you in that year.

  • If you provide an employee, former employee, or non-resident employee with security options benefits, you must prepare a T4 slip.