T4 and Taxable Income Summary by ryg21296

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									Employers’ Guide
Filing the T4 Slip and Summary




RC4120(E) Rev. 10
    Is this guide for you?
                                                                       ■   you paid fees (except for director fees), commissions,
U   se this guide if you are an employer (resident or
    non-resident) and you have paid your employees
any of the following types of income:
                                                                           or other amounts to a non-resident for services
                                                                           rendered in Canada, other than employment
                                                                           situations. Instead, see Guide RC4445, T4A-NR –
■   employment income;                                                     Payments to Non-Residents for Services Provided in
■   commissions;                                                           Canada.
■   taxable allowances and benefits;                                   ■   you are an employer with construction as your
                                                                           primary source of business income, and you paid
■   retiring allowances;
                                                                           amounts to subcontractors for goods and services
■   fishing income; or                                                     rendered in connection with construction activities.
                                                                           Complete a T5018 slip, Statement of Contract Payments.
■   any other remuneration (see “Box 14 – Employment
    income,” on page 9, for a detailed list).                          ■   you paid amounts from a retirement compensation
                                                                           arrangement. Instead, see Guide T4041, Retirement
Do not use this guide if:                                                  Compensation Arrangements Guide, for information
                                                                           about completing a T4A-RCA return.
■   you paid pensions, lump-sum payments, annuities, or
    other income (including amounts paid to a proprietor               Throughout this guide, we refer to other guides, forms,
    or partner of an unincorporated business). Instead, see            interpretation bulletins, and information circulars.
    Guide RC4157, Deducting Income Tax on Pension and                  Generally, if you need any of these, go to
    Other Income, and Filing the T4A Slip and Summary.                 www.cra.gc.ca/forms. You may want to bookmark this
                                                                       address for easier access to our Web site in the future.




If you have a visual impairment, you can get our publications
in braille, large print, etext (CD or diskette), or MP3. For
more information, go to www.cra.gc.ca/alternate or call
1-800-959-2221.




La version française de cette publication est intitulée Guide de l’employeur – Comment établir le feuillet T4 et le Sommaire.


                                                          www.cra.gc.ca
 What’s new?
Reporting of retiring allowances                                   should be reported in the “Other information” area at the
                                                                   bottom of the T4 slip using code 86. For more information,
Starting in January 2011 (for the 2010 taxation year), use the     see page 15.
T4 slip instead of the T4A slip to report eligible and
non-eligible retiring allowance amounts (including those
amounts paid to Status Indians). This will reduce the              Upcoming CPP reform
burden of filing both a T4 slip and a T4A slip for many            The CPP changes for working beneficiaries announced
filers. The T4A slip will still be used to report these types of   May 25, 2009 will be implemented in January 2012. In
income for 2009 and prior years. For more information, see         preparation for the upcoming changes, starting in
page 23.                                                           January 2012 (for the 2011 taxation year), box 26,
                                                                   “CPP/QPP pensionable earnings” will have to be
Mandatory electronic filing                                        completed on the T4 slip at all times.

You must file information returns by Internet File Transfer
in eXtensible mark-up language (XML) if you file more              Reporting change for insurable
than 50 T4 information returns (slips) for a calendar year.        earnings
Mandatory electronic filing relates to the date of filing, not
                                                                   Starting in January 2012 (for the 2011 taxation year), box 24,
the tax year of the returns being filed. If you are filing for a
                                                                   “EI insurable earnings” will have to be completed on the
prior year with more than 50 T4 information returns (slips),
                                                                   T4 slip at all times.
they must also be filed electronically.

Code 86 – Security options election
Under proposed changes, when the employer elects not to
claim a stock option cash-out as an expense, the amount




                                                          www.cra.gc.ca
    Table of contents
                                                                                             Page                                                                                             Page

Chapter 1 – General information .....................................                           5      Filing over the Internet ...................................................             18
What are your responsibilities? .........................................                       5      Filing on paper.................................................................         18
Penalties and interest ..........................................................               5      Filing on electronic media ..............................................                19
   Failure to deduct ..............................................................             5
                                                                                                    Chapter 5 – After you file .................................................                19
   Late filing and failure to file the T4 information
                                                                                                    Amending, cancelling, adding, or replacing slips ..........                                 19
      return .............................................................................      5
                                                                                                      Amending slips................................................................            19
   Failure to remit and late remittances.............................                           5
                                                                                                      Cancelling slips................................................................          19
   Interest...............................................................................      6
                                                                                                      Adding slips .....................................................................        19
   Cancelling or waiving penalties and interest...............                                  6
                                                                                                      Replacing slips .................................................................         19
If an employee leaves ..........................................................                6
                                                                                                    Pension adjustment (PA)....................................................                 19
Changes to your business entity........................................                         6
                                                                                                    Data used by other programs ............................................                    20
   If your business stops operating or a partner or the
      sole proprietor dies ......................................................               6   Chapter 6 – Special situations..........................................                    20
   If you change your business status................................                           6   Barbers and hairdressers, and taxi drivers and drivers
   If your business changes its structure or                                                          of other passenger-carrying vehicles ............................                         20
      organization ..................................................................           6   Employees with power saws or tree trimmers................                                  20
   If your business amalgamates ........................................                        6   Employees outside Canada................................................                    20
How to appeal an assessment or a ruling.........................                                7     Overseas employment tax credit...................................                         21
                                                                                                    Fishing income.....................................................................         21
Chapter 2 – T4 slips ............................................................               7
                                                                                                    Placement or employment agency workers ....................                                 22
When to complete a T4 slip ................................................                     7
                                                                                                      Agency that hires the employee ....................................                       22
Types of T4 slips ..................................................................            7
                                                                                                      Agency that pays the worker.........................................                      22
  Customized T4 slips ........................................................                  7
                                                                                                      Agency whose client pays the worker..........................                             22
  Slips for filing over the Internet .....................................                      8
                                                                                                      Agency that hires a worker under a contract for
  Slips for filing on paper...................................................                  8
                                                                                                        service............................................................................     22
Completing T4 slips.............................................................                8
                                                                                                    Repayment of salary or wages by an employee..............                                   23
  Detailed instructions .......................................................                 8
                                                                                                    Retiring allowances.............................................................            23
  Other information ............................................................               13
                                                                                                      Transfer of a retiring allowance.....................................                     24
  Detailed instructions for taxable benefits .....................                             13
                                                                                                    Salary deferral arrangements ............................................                   24
How to avoid common reporting errors ..........................                                15
                                                                                                      Prescribed plans or arrangements.................................                         24
  CPP/QPP questions ........................................................                   15
                                                                                                      Salary paid while the participant is working ..............                               24
  Employment Insurance (EI) questions ..........................                               16
                                                                                                      Deferred amounts paid to the participant during
Filing T4 slips .......................................................................        16
                                                                                                        the leave period............................................................            25
Distributing T4 slips to your employees ..........................                             16
                                                                                                    Salary paid in error .............................................................          25
Chapter 3 – T4 Summary ...................................................                     16   Seasonal Agricultural Workers Program .........................                             26
Completing the T4 Summary .............................................                        16   Status Indians ......................................................................       26
 Detailed instructions .......................................................                 16     Taxable salary or wages..................................................                 26
                                                                                                      Tax-exempt salary or wages ..........................................                     26
Chapter 4 – T4 information return ....................................                         17
                                                                                                      Partly tax-exempt salary and wages .............................                          26
Filing methods .....................................................................           18
                                                                                                    For more information ........................................................               28




4                                                                                       www.cra.gc.ca
    Chapter 1 – General information                                  Late filing and failure to file the
                                                                     T4 information return
                                                                     You have to file the T4 information return and give the
What are your responsibilities?                                      T4 slips to the employees on or before the last day of
As an employer, you must do the following:                           February following the calendar year to which the
                                                                     information return applies. If the last day of February is a
■   Deduct Canada Pension Plan/Quebec Pension Plan
                                                                     Saturday or Sunday, your information return is due the
    (CPP/QPP) contributions, Employment Insurance (EI)
                                                                     next business day.
    premiums, provincial parental insurance plan (PPIP)
    premiums, and income tax from remuneration or other              We consider your return to be filed on time if we receive it
    amounts you pay. See Guide T4001, Employers’ Guide –             or if it is postmarked on or before the due date.
    Payroll Deductions and Remittances for more information.
                                                                     The penalty for failing to file the T4 information return by
■   Hold these amounts in trust for the Receiver General,            the due date is the greater of $100 or a penalty determined
    except the QPP contributions and PPIP premiums, which            as follows:
    are remitted directly to Revenu Québec. You have to
    keep these amounts separate from the operating funds of                Number of
    your business. Make sure these amounts are not part of                information              Penalty             Maximum
    an estate in liquidation, assignment, receivership, or               returns (slips)          (per day)             penalty
    bankruptcy.                                                             by type
■   Remit these deductions to the Canada Revenue Agency
                                                                            50 or less                $10               $1,000
    (CRA).
■   Report the income and deductions on the T4 information                  51 – 500                  $15               $1,500
    return to the CRA. To do this, complete T4 slips,                      501 – 2,500                $25               $2,500
    Statement of Remuneration Paid, and the related
    T4 Summary, Summary of Remuneration Paid. Detailed                   2,501 – 10,000               $50               $5,000
    instructions on how to complete a T4 slip begin on                   10,001 or more               $75               $7,500
    page 8, and on page 16 for a T4 Summary.
■   File the T4 Summary, together with the related T4 slips,
    on or before the last day of February following the
                                                                     Failure to remit and late remittances
    calendar year to which the slips apply. See page 18 for          We can assess a penalty of up to 20% of the amount you
    information about the filing methods you can use.                failed to remit when:
■   Give employees their T4 slips on or before the last day of       ■   you deduct the amounts, but do not remit them; or
    February following the calendar year to which the slips
                                                                     ■   we receive the amounts you deducted after the due date.
    apply.
                                                                     If the remittance due date is a Saturday, Sunday, or public
■   Keep records. Keep your paper and electronic records for
                                                                     holiday, your remittance is due on the next business day.
    at least six years after the year to which they relate. If you
    want to destroy them before the six-year period is over,         The penalty is:
    complete Form T137, Request for Destruction of Records.
    Go to www.cra.gc.ca/records or see Guide RC4409,                 ■   3% if the amount is one to three days late;
    Keeping Records.                                                 ■   5% if it is four or five days late;
For more information about employer responsibilities, go to          ■   7% if it is six or seven days late; and
www.cra.gc.ca/payroll.
                                                                     ■   10% if it is more than seven days late or if no amount is
                                                                         remitted.
Penalties and interest
                                                                     Generally, we only apply this penalty to the part of the
Failure to deduct                                                    amount you failed to remit that is more than $500.
We can assess a penalty of 10% of the amount you fail to             However, we may apply the penalty to the total amount if
deduct. Generally, we only apply the 10% penalty to                  the failure was made knowingly or under circumstances of
the part of the amount you failed to deduct that is more             gross negligence.
than $500. However, we may apply the 10% penalty to the
total amount if the failure was made knowingly or under              If you are subject to this penalty more than once in a
circumstances of gross negligence.                                   calendar year, we may assess a 20% penalty on the second
                                                                     or later failures if they were made knowingly or under
If you fail to deduct the required amount of income tax              circumstances of gross negligence.
more than once in a calendar year, we may apply
a 20% penalty to the second or later failures if they were               Note
made knowingly or under circumstances of gross                           We consider a non-sufficient funds (NSF) cheque to be a
negligence.                                                              failure to remit and will automatically apply a penalty,
                                                                         as well as an administrative charge.




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Interest                                                             than 50 slips, you must file your return over the Internet,
If you fail to pay an amount, we may apply interest from             as explained on page 18.
the day your payment was due. The interest rate we use is        ■   Prepare and give a Record of Employment (ROE) to each
determined every three months, based on prescribed                   former employee. Generally, you have to send it to them
interest rates. Interest is compounded daily. We also apply          within five calendar days of either the employee’s
interest to unpaid penalties.                                        interruption of earnings, or the date you become aware
                                                                     of the interruption of earnings, but special rules may
Cancelling or waiving penalties and interest                         apply. For more information, visit the Service Canada
The taxpayer relief provisions of the Income Tax Act give us         Web site at www.servicecanada.gc.ca/roeweb, or see the
some discretion to cancel or waive all or part of any interest       publication called How to complete the Record of
charges and penalties. This allows us to consider                    Employment (ROE) Form, which is available by calling
extraordinary circumstances that may have prevented you              Service Canada at 1-800-622-6232.
from fulfilling your obligations under the Act. For details,     ■   When the owner of a sole proprietorship dies, a final
go to www.cra.gc.ca/fairness or Information Circular                 personal income tax and benefit return has to be filed.
IC07-1, Taxpayer Relief Provisions.                                  This return is due by June 15 of the year following death,
                                                                     unless the date of death is between December 16 and
If an employee leaves                                                December 31, in which case the final return is due
                                                                     six months after the date of death. For more information,
If an employee leaves, we suggest you calculate the                  see Guide T4011, Preparing Returns for Deceased Persons.
employee’s earnings for the year to date and give the
employee a T4 slip. Keep our copy of the slip and include it     ■   Close the Business Number (BN) and all CRA business
with your T4 Summary when you file it on or before the               accounts after all the final returns and all the amounts
last day of February of the following year.                          owing have been processed.
In addition, you have to prepare a Record of Employment              To close your payroll account, you can use the “Request
(ROE) for each former employee. Generally, you have to               to close payroll account” service in My Business Account
send it to them within five calendar days of either the              at www.cra.gc.ca/mybusinessaccount.
employee’s interruption of earnings, or the date you
become aware of the interruption of earnings, but special        If you change your business status
rules may apply. For more information, visit the Service
                                                                 If you change your legal status (for example, from a sole
Canada Web site at www.servicecanada.gc.ca/roeweb, or
                                                                 proprietorship to a corporation), we consider you to be a
see the publication called How to Complete the Record of
                                                                 new employer. You may need a new Business Number
Employment Form, which is available by calling Service
                                                                 (BN) and a new payroll account. Call 1-800-959-5525 to let
Canada at 1-800-622-6232.
                                                                 us know if your legal status has changed, or if it will
                                                                 change in the near future.
Changes to your business entity
If your business stops operating or a partner                    If your business changes its structure or
or the sole proprietor dies                                      organization
If your business stops operating or a partner or the sole        A successor employer is one who has acquired all or part of
proprietor dies, you should do the following:                    a business, and who has immediately succeeded the former
                                                                 employer as the new employer of an employee. The
■   Remit all CPP/QPP contributions, EI premiums,                successor employer may, under certain circumstances, take
    PPIP premiums, and income tax deductions of the former       into consideration the CPP/QPP, EI, and PPIP deductions
    employees within seven days of the day your business         already withheld by the previous employer and continue
    ends. For details, see Guide T4001, Employers’ Guide –       withholding and remitting such deductions as if there was
    Payroll Deductions and Remittances. For information on the   no change in employer. If employees have already paid the
    filing of information slips and the remitting requirements   maximum deductions, no further deductions would be
    for Revenu Québec, visit their Web site at                   taken for the year.
    www.revenu.gouv.qc.ca/en/entreprise.
                                                                 Go to “Employer restructuring/Succession of employers”
■   Calculate the pension adjustment (PA) that applies to        at www.cra.gc.ca/cppeiexplained for more information.
    your former employees who accrued benefits for the year
    under your registered pension plan (RPP) or deferred         The above situation may not apply to your business and,
    profit sharing plan (DPSP). For information on how to        therefore, you are still required to deduct CPP/QPP, EI,
    calculate pension adjustments, see Guide T4084, Pension      and PPIP. If this is the case, you may want to ask for
    Adjustment Guide.                                            administrative relief for your employees who have already
                                                                 paid the maximum deductions for the year before the
■   Complete all T4 slips and the T4 Summary using               change. For more information, call 1-800-959-5525.
    electronic filing methods or on paper, and send them to
    the Ottawa Technology Centre within 30 days of the date      If your business amalgamates
    your business ends (or 90 days from the date a partner or
    the sole proprietor dies). Give copies of the T4 slips to    If your business amalgamates with another, special rules
    your former employees. If you have to prepare more           apply. In this case, you as the successor employer can keep
                                                                 the Business Number (BN) of one of the companies, or you

6                                                       www.cra.gc.ca
can apply for a new one. If one of the companies is                For more information on how to appeal a CPP or EI
non-resident, however, you have to apply for a new BN.             assessment or ruling, see Pamphlet P133, Your Appeal
                                                                   Rights – Employment Insurance and Canada Pension Plan
Since no new employer exists for CPP and EI purposes,
                                                                   Coverage.
continue deducting in the normal manner, taking into
account the deductions and remittances that occurred
before the amalgamation. These remittances will be
reported under the payroll account number of the                       Chapter 2 – T4 slips
successor BN.
With an amalgamation, the predecessor companies do not             When to complete a T4 slip
have to file T4 returns for the period leading up to the
                                                                   Most amounts paid to an individual are referred to as
amalgamation. The successor company files the T4 returns
                                                                   remuneration. You have to complete a T4 slip to report the
for the entire year.
                                                                   following:

How to appeal an assessment or a                                   ■   salary, wages (including pay in lieu of termination
                                                                       notice), tips or gratuities, bonuses, vacation pay,
ruling                                                                 employment commissions, gross and insurable earnings
If you receive an assessment for CPP contributions,                    of self-employed fishers, and all other remuneration (see
EI premiums, or income tax that you do not agree with, or              “Box 14 – Employment income,” on page 9, for a detailed
you have received a CPP/EI ruling letter and you disagree              list) you paid to employees during the year (see Note);
with the decision, you have 90 days from the date of the           ■   taxable benefits or allowances;
assessment or the date of the ruling to appeal. However,
before you file an appeal, you may want to call                    ■   retiring allowances;
1-800-959-5525 to clarify the matter. This could solve the
                                                                   ■   deductions you withheld during the year; and
problem and save you the time and trouble of appealing.
                                                                   ■   pension adjustment (PA) amounts for employees who
To appeal the amount of income tax that we indicate you
                                                                       accrued a benefit for the year under your registered
owe, you can:
                                                                       pension plan (RPP) or deferred profit sharing plan
■   register a notice of objection or an appeal electronically         (DPSP).
    using My Account (www.cra.gc.ca/myaccount) or My
                                                                       Note
    Business Account (www.cra.gc.ca/mybusinessaccount);
                                                                       You have to report income on a T4 slip for the year
■   file Form T400A, Objection – Income Tax Act; or                    during which it was paid, regardless of when the
                                                                       services are performed or rendered. For example, if a
■   write to the Chief of Appeals at your local tax services           pay cheque dated in January covers income earned in
    office or tax centre. The addresses of our tax centres are         the last days of December, report the income on the
    listed at the end of this guide. They, along with the              T4 slip for the year that starts in January.
    addresses of our tax services offices, are also available at
    www.cra.gc.ca/tso. Attach a copy of the assessment, state      You have to complete T4 slips for all individuals who
    the reasons why you do not agree with the assessment,          received remuneration from you during the year if:
    and give all the related facts.
                                                                   ■   you had to deduct CPP/QPP contributions, EI
To appeal the CPP contributions or EI premiums that we                 premiums, PPIP premiums, or income tax from the
indicate you owe, or to appeal a CPP/EI rulings decision,              remuneration; or
you can:
                                                                   ■   the remuneration was more than $500.
■   register an appeal electronically using My Business
                                                                       Notes
    Account (www.cra.gc.ca/mybusinessaccount);
                                                                       If you provide employees with taxable group term life
■   file Form CPT100, Appeal of a Ruling Under the Canada              insurance benefits, you always have to prepare T4 slips,
    Pension Plan and/or Employment Insurance Act, or                   even if the total of all remuneration paid in the calendar
    Form CPT101, Appeal of an Assessment Under the Canada              year is $500 or less.
    Pension Plan and/or Employment Insurance Act; or
                                                                       If you provide former employees or retirees with such
■   write to the Chief of Appeals at your local tax services           benefits, you have to prepare a T4A slip. For more
    office or tax centre. The addresses of our tax centres are         information, see Guide RC4157, Deducting Income Tax on
    listed at the end of this guide. They, along with the              Pension and Other Income, and Filing the T4A Slip and
    addresses of our tax services offices, are also available at       Summary.
    www.cra.gc.ca/tso. Attach a copy of the assessment or
    ruling, state the reasons why you do not agree with the        Types of T4 slips
    assessment or ruling, and give all the related facts.
                                                                   Customized T4 slips
                                                                   For those who complete a large number of slips, we accept
                                                                   slips other than our own. However, we must approve your
                                                                   customized slip before you can use it.



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To get our written approval, send two samples of your               on each T4 slip. If you are not able to apportion the PA this
proposed computer-printed slip to:                                  way, you can report it on one slip.
    Business Integration Division
    Electronic and Print Media Directorate                          Follow these guidelines to complete your
    Canada Revenue Agency                                           T4 slips:
    Place de Ville, Tower A                                         ■   Complete the slips clearly and in alphabetical order.
    320 Queen Street, 9th floor
    Ottawa ON K1A 0L5                                               ■   Report, in dollars and cents, all amounts you paid during
                                                                        the year, except pension adjustment amounts, which are
For more information, go to www.cra.gc.ca/customized or                 reported in dollars only.
see Information Circular IC97-2, Customized Forms.
                                                                    ■   Report all amounts in Canadian dollars, even if they
                                                                        were paid in another currency.
Slips for filing over the Internet
For information about completing and filing                         ■   Do not enter hyphens or dashes between numbers
T4 slips over the Internet, go to www.cra.gc.ca/t4internet.             or names.
You can also read the information on page 18.                       ■   Do not enter the dollar sign ($).

Slips for filing on paper                                           ■   Do not show negative dollar amounts on slips; to make
                                                                        changes to previous years, send us amended slips for the
You can order single-page slips that have two slips per                 years in question. See page 19.
page intended for laser or ink jet printers, for typing, or to
be filled out by hand, at www.cra.gc.ca/forms or by                 ■   If you do not have to enter an amount in a box, do not
calling 1-800-959-2221.                                                 enter “nil”—leave the box blank.

You can print, from our Web site, .pdf copies of T4 slips           ■   Do not change the headings of any of the boxes.
that you complete by hand.
You can use fillable T4 slips on our Web site. After
                                                                    Detailed instructions
completing them, you can print them on plain white paper.           These instructions are for all employers who complete
For information, go to www.cra.gc.ca/fillable.                      T4 slips. Refer to additional guidelines in “Chapter 6 –
                                                                    Special situations” beginning on page 20 for:
Completing T4 slips                                                 ■   amounts paid to barbers and hairdressers (page 20);
Make sure the social insurance number (SIN) and name                ■   amounts paid to drivers of taxis and other
you enter on the T4 slip for each employee are the same as              passenger-carrying vehicles (page 20);
on the employee’s SIN card.
                                                                    ■   amounts paid to employees with power saws or tree
An incorrect SIN can affect an employee’s CPP/QPP                       trimmers (page 20);
benefits if the record of earnings file is not accurate. Also, if
the T4 slip has a pension adjustment (PA) amount, the               ■   amounts paid to employees outside Canada (page 20);
employee may receive an inaccurate annual RRSP                      ■   amounts paid to fishers (page 21);
deduction limit statement. In addition, the related
information on the employee’s notice of assessment will be          ■   amounts paid to placement or employment agency
inaccurate.                                                             workers (page 22);

If the individual does not show you his or her SIN card             ■   repayment of salary or wages by an employee (page 23);
within three days of them starting to work, you should be           ■   retiring allowances (page 23);
able to show that you made a reasonable effort to get it. If
you cannot obtain a SIN from the recipient, file your               ■   salary deferral arrangements (page 24);
information return, without the SIN, on or before the last          ■   prescribed plans or arrangements (page 24);
day of February. If you do not, you may be subject to a
penalty of $100 for each failure.                                   ■   salary paid in error (page 25);
For more information, see Information Circular IC82-2,              ■   Seasonal Agricultural Workers Program (page 26); or
Social Insurance Number Legislation that Relates to the
                                                                    ■   amounts paid to Status Indians (page 26).
Preparation of Information Slips, or visit the Service Canada
Web site at www.servicecanada.gc.ca.
                                                                    Employer’s name
If you had an employee who worked in more than one                  Enter your operating or trade name in the space provided
province or territory during the year, prepare a separate           on each slip. This should be the same information that
T4 slip for the earnings and deductions that apply to each          appears on your PD7A statement of account.
province or territory.
If you give employees multiple slips, either because they           Employee’s name and address
were employed in more than one province or territory, or            Enter the employee’s last name, followed by the first name
were on different payrolls, report the PA proportionately           and initial. If the employee has more than one initial, enter
                                                                    the employee’s first name followed by the initials in the
                                                                    “First name” space. If you enter only the employee’s

8                                                          www.cra.gc.ca
initials, enter them at the beginning of the “First name”              Notes
space. Do not enter the title of office or courtesy title of the       For more information about the difference between
employee (such as Director, Mr., or Mrs.). Enter the                   retiring allowances and employment income received as
employee’s address, including the province, territory, or              a result of a loss of employment, see Interpretation
U.S. state, Canadian postal code or U.S. zip code, and                 Bulletin IT-337, Retiring Allowances.
country.
                                                                       If you are paying amounts to placement or employment
                                                                       agency workers, taxi drivers or drivers of other
Year
                                                                       passenger-carrying vehicles, barbers or hairdressers, or
Enter the four digits of the calendar year in which you paid           fishers (self-employed), see the information on “Special
the remuneration to the employee.                                      situations” on page 20 and under Box 29 on page 11.

Box 10 – Province of employment                                    A deduction from taxable income can be claimed for the
Enter one of the following abbreviations to indicate where         amount of employment income earnings (including taxable
the employee reported to work:                                     allowance) by certain Canadian Forces personnel and
                                                                   police. See the explanation under Code 43 on page 14.
AB       Alberta
BC       British Columbia                                          Director’s fees paid to a non-resident director for services
MB       Manitoba                                                  rendered in Canada must also be reported in box 14.
NB       New Brunswick                                             However, a non-resident director is not considered to be
NL       Newfoundland and Labrador                                 employed in Canada when he or she does not attend any
NS       Nova Scotia                                               meetings or perform any other functions in Canada.
NT       Northwest Territories                                     Include commissions, taxable allowances, the value of
NU       Nunavut                                                   taxable benefits (including any GST/HST or other
ON       Ontario                                                   applicable taxes), and any other payments you paid to
PE       Prince Edward Island                                      employees during the year.
QC       Quebec
SK       Saskatchewan                                              Include amounts paid under a supplementary
YT       Yukon                                                     unemployment benefit plan (SUBP) (such as
US       United States                                             employer-paid maternity, parental, and compassionate care
                                                                   top-up amounts) that do not qualify as a SUBP under the
ZZ       Other                                                     Income Tax Act.
         Enter ZZ if an employee worked in a country other
         than Canada or the United States, or if the               Include payments out of an employee benefit plan (EBP)
         employee worked in Canada beyond the limits of a          and amounts that a trustee allocated under an employee
         province or territory (for example, on an offshore        trust. If the trustee allocates the income, but you do not pay
         oil rig).                                                 it immediately, include it in the income of the employee. Do
                                                                   not report it when you make the payment. For more
The province or territory of employment you enter depends          information, see Interpretation Bulletin IT-502, Employee
on where your employee has to report for work. For more            Benefit Plans and Employee Trusts, and its Special Release.
details, see “Which tax tables should you use?” in
Chapter 1 of Guide T4001, Employers’ Guide – Payroll               For emergency volunteers (such as firefighters or
Deductions and Remittances.                                        ambulance technicians), do not include in box 14 the first
                                                                   $1,000. However, if you employed the individual (other
For any employee who worked in or whose employment                 than as a volunteer) for the same or similar duties, the
was located in more than one province or territory in the          whole payment is taxable and should be included in
year, complete separate T4 slips. For each location, indicate      box 14.
the total remuneration paid to the employee and the related
deductions, such as CPP/QPP contributions, EI premiums,            Boxes 16 and 17 – Employee’s CPP/QPP contributions
PPIP premiums, and tax.
                                                                   Enter the amount you deducted from the employee for
                                                                   contributions to the Canada Pension Plan (CPP) or Quebec
Box 12 – Social insurance number                                   Pension Plan (QPP). Make your entry under “CPP” (box 16)
Enter the employee’s social insurance number (SIN) as it           or “QPP” (box 17), depending on the province or territory
appears on the employee’s SIN card. If you do not have the         of employment. Leave both boxes blank if the employee did
SIN, enter nine zeros. See “Completing T4 slips” on page 8         not contribute to either plan.
for information on your obligation to provide a valid SIN.
                                                                   Do not report the employer’s share of CPP or QPP
Box 14 – Employment income                                         contributions on the T4 slip.
Report the total income before deductions. Include all             If an employee contributed to CPP and QPP, the total
salary, wages (including pay in lieu of termination notice),       contribution to both plans should not be more than the
bonuses, vacation pay, tips and gratuities, honorariums,           maximum contribution for the year. If an employee
director’s fees, management fees, and executor’s and               contributed to both plans, you have to prepare two T4 slips
administrator’s fees received to administer an estate (as          as follows:
long as the administrator or executor does not act in this
capacity in the regular course of business).                       ■   one showing the QPP you deducted, the province of
                                                                       employment as Quebec, the applicable pensionable


                                                           www.cra.gc.ca                                                          9
    earnings, and the remuneration the employee earned in         To determine if the employee made past service
    the province of Quebec; and                                   contributions while a contributor or while not a contributor,
                                                                  see Interpretation Bulletin IT-167, Registered Pension Plans –
■   one showing the CPP you deducted, the applicable
                                                                  Employee’s Contributions.
    province or territory of employment (other than Quebec),
    the applicable pensionable earnings, and the                  Include instalment interest in box 20. This includes interest
    remuneration the employee earned in the other province        charged to buy back pensionable service.
    or territory.
                                                                      Notes
If you over-deducted contributions from the employee:                 Do not use box 20 to show what you contributed to an
                                                                      employee’s registered retirement savings plan (RRSP).
■   Do not adjust the amounts you report on the T4 slip. We
                                                                      The employer’s RRSP contribution is a taxable benefit
    will credit the excess CPP contributions to the employee
                                                                      to the employee. Enter code 40 in the “Other
    when he or she files his or her income tax and benefit
                                                                      information” area and the corresponding amount in the
    return.
                                                                      box. Include this amount in box 14.
■   Complete Form PD24, Application for a Refund of
                                                                      If you have a group RRSP for your employees, the
    Overdeducted CPP Contributions or EI Premiums, to apply
                                                                      trustee will send the official receipts for tax purposes to
    for a refund of your CPP overpayment. Send it to us with
                                                                      you or to your employees. If the trustee sends the
    your paper-filed T4 information return or mail it
                                                                      receipts directly to you, provide these copies to the
    separately if you have filed your return electronically.
                                                                      employees. The receipts will show the employee and
    You can request a refund up to four years after the end of        employer contribution amounts. Do not report these
    the year in which the CPP overpayment occurred.                   amounts in box 20.

Box 18 – Employee’s EI premiums                                   Box 22 – Income tax deducted
Enter the amount of EI premiums you deducted from the             Enter the total income tax you deducted from the
employee’s earnings. If you did not deduct premiums,              employee’s remuneration and retiring allowances. This
leave this box blank.                                             includes the federal, provincial (except Quebec), and
                                                                  territorial taxes that apply. If you did not deduct tax, leave
Do not report the employer’s share of EI premiums on the          the box blank.
T4 slip.
                                                                  Do not include any amount you withheld under the
If you over-deducted premiums from an employee:                   authority of a garnishee or a requirement to pay that
■   Do not adjust the amounts you report on the T4 slip. We       applies to the employee’s previously assessed tax arrears.
    will credit the excess EI premiums to the employee when
    he or she files his or her income tax and benefit return.     Box 24 – EI insurable earnings
                                                                  Enter the total amount you used to calculate the employee’s
■   Complete Form PD24, Application for a Refund of
                                                                  EI premiums. Do not include the unpaid portion of any
    Overdeducted CPP Contributions or EI Premiums, to apply
                                                                  earnings from insurable employment that you did not pay
    for a refund of your EI overpayment. Send it to us with
                                                                  because of your bankruptcy, receivership, or non-payment
    your paper-filed T4 information return or mail it
                                                                  of remuneration for which the employee has filed a
    separately if you have filed your return electronically.
                                                                  complaint with the federal, provincial, or territorial labour
    You can request a refund up to three years after the end      authorities.
    of the year in which the EI overpayment occurred.
                                                                  Leave the box blank if:
Box 20 – RPP contributions                                        ■   there are no insurable earnings (for exempt employment,
Enter the total amount the employee contributed to a                  see Box 28 on page 11);
registered pension plan (RPP). If the employee did not            ■   insurable earnings are the same as the employment
contribute to a plan, leave this box blank.                           income in box 14 (see Exception below); or
Enter any deductible retirement compensation arrangement          ■   insurable earnings are over the maximum for the year
(RCA) contributions you withheld from the employee’s                  (except for some of the special situations that are detailed
income. Do not include amounts that are not deductible. If            starting on page 20).
the amount in box 20 includes RPP contributions and
deductible RCA contributions, attach a letter informing the           Exception
employee of the amounts.                                              When the same employer issues more than one T4 slip
                                                                      to an employee, the employer can report the insurable
If the amount you report includes current contributions and           earnings amount for each period of employment in
past service contributions for 1989 or earlier years, enter, in       box 24 of each T4 slip. Reporting these amounts can
the “Other information” area, the following codes along               reduce unnecessary pensionable and insurable earnings
with the corresponding amount:                                        review (PIER) reports for EI deficiency calculations,
■   code 74 for past service contributions while the employee         especially if the employee worked both inside and
    was a contributor; and                                            outside of Quebec.
■   code 75 for past service contributions while the employee         For example, an employee has two T4 slips from the
    was not a contributor.                                            same employer. He earned $25,000 working in Ontario

10                                                       www.cra.gc.ca
  from January 2010 to June 2010. He then earned $25,000         QPP – Regardless of the employee’s province or territory of
  working in Quebec for the remainder of the year. The           residence, complete box 26 if the employee is subject to
  T4 slip for Ontario will report $25,000 in box 14              QPP and the pensionable earnings are more than the
  (“Employment income”) and $25,000 in box 24                    employment earnings in box 14. If the maximum QPP
  (“EI insurable earnings”). The T4 slip for Quebec will         pensionable earnings for the year have been reached on the
  report $25,000 in box 14 and $18,200 in box 24                 Relevé 1 for the employee, but the income in box 14 of the
  ($25,000 + $18,200 = $43,200, which is the maximum             T4 slip is less than the maximum pensionable amount, enter
  insurable earnings for 2010).                                  the maximum pensionable earnings amount in box 26. Only
                                                                 leave the box blank if the maximum QPP pensionable
Box 26 – CPP/QPP pensionable earnings                            earnings for the year have been reached and box 14 is equal
In most cases, you will leave the box blank. However, you        to or greater than the maximum pensionable earnings.
have to complete the box in the following situations:            Revenu Québec considers certain benefits and earnings to
CPP – Complete box 26 if you included any of the                 be pensionable earnings for employees working in Quebec.
following types of remuneration in box 14, “Employment           These include:
income”:                                                         ■   private health benefit plan premiums; and
a) Remuneration paid to the employee:                            ■   assumed earnings – persons 55 years of age or older
   – before and during the month the employee                        whose hours of work are reduced by reason of phased
     turned 18;                                                      retirement may choose, with their employers, to make
                                                                     contributions to the QPP on all or part of the amount of
   – after the month the employee turned 70;                         the reduction in remuneration.
   – during the months the employee was considered to            For details, see Guide TP-1015.G-V, Guide for Employers –
     be disabled under the CPP or QPP; or                        Source Deductions and Contributions, or brochure IN-253-V,
   – after a CPP retirement pension became payable. (The         Taxable Benefits, which you can get from Revenu Québec.
     requirements for a retirement pension paid under
     the QPP are different. For information, see                 Box 28 – Exempt (CPP/QPP, EI, and PPIP)
     Guide TP-1015.G-V, Guide for Employers – Source             CPP/QPP (Canada Pension Plan/Quebec Pension
     Deductions and Contributions, which you can get from        Plan) – Leave this box blank if you entered an amount in
     Revenu Québec.)                                             box 16, 17, or 26. Enter an “X” only if the earnings were
                                                                 exempt for the entire period of employment.
b) Remuneration paid to the employee while the employee
   worked in “excluded employment” (defined in                   EI (Employment Insurance) – Leave this box blank if you
   Chapter 2 of Guide T4001, Employers’ Guide – Payroll          entered an amount in box 18 or 24. Enter an “X” only if the
   Deductions and Remittances).                                  earnings were exempt for the entire period of employment.
c) Amounts for a clergy member’s residence from which            PPIP (provincial parental insurance plan) – Leave this
   you did not deduct CPP contributions (if the clergy           box blank if you entered an amount in box 55 or 56. Enter
   member gets a tax deduction for the residence,                an “X” only if the earnings were exempt for the entire
   CPP contributions are not required).                          period of employment in the province of Quebec.
d) Any excluded income, benefits, or payments as
                                                                 Box 29 – Employment code
   described in Chapter 2 of Guide T4001, Employers’
                                                                 Enter the appropriate code in this box if one of the
   Guide – Payroll Deductions and Remittances.
                                                                 following situations applies. Otherwise, leave it blank.
e) Amounts for non-taxable Status Indian employees for
                                                                 Do not complete box 14, “Employment income,” if you are
   whom you elected to pay CPP.
                                                                 using employment code 11, 12, 13, or 17.
Subtract any of the amounts noted above from the amount
                                                                 11 – Placement or employment agency workers
in box 14, and enter the difference in box 26. Do not change
the amount in box 14.                                            12 – Taxi drivers or drivers of other passenger-carrying
                                                                      vehicles
  Note
  Taxable benefits only – If you provide pensionable             13 – Barbers or hairdressers
  taxable benefits (non-cash) and no other remuneration is
  paid in a pay period (for example, an employee is on an        14 – Withdrawal from a prescribed salary deferral
  unpaid leave of absence and the employer continues to               arrangement plan
  provide benefits during the leave), leave box 26 blank.        15 – Seasonal Agricultural Workers Program
  Do not code the slip CPP-exempt in box 28, since the
  employee may want to elect to pay CPP on the amount.           16 – Detached employee – Social Security agreement

Special rules may apply in certain situations. Please refer to         Note
“Chapter 6 – Special situations”, which begins on page 20,             When CPP is paid by the employer on behalf of
if you are paying amounts for prescribed plans or                      detached employees under employment code 16,
arrangements, to placement or employment agency                        box 14 is left blank if no other type of income is
workers, or to Status Indians.                                         reported. Boxes 16 and 26 are completed with the



                                                        www.cra.gc.ca                                                        11
      appropriate amounts and boxes 18 and 24 are left           ■   the employee died during the year; or
      blank. Do not enter an “X” in the EI exempt box.
                                                                 ■   the employee, even if he or she is still a member of the
17 – Fishers – Self-employed                                         plan, no longer accrues new pension credits in the year
                                                                     (for example, the employee has accrued the maximum
Box 44 – Union dues                                                  number of years of service in respect of the plan).
Use this box only if you and the union agree that the union
will not issue receipts for union dues to employees. In this     Special rules concerning the PA
case, include a certificate of agreement with the                Special calculation rules apply, in some circumstances, to
T4 information return. If you file electronically, you have to   employees who:
keep the certificate of agreement on file in case we ask to
                                                                 ■   left your employment during the year;
see it.
                                                                 ■   are on, or return from, a leave of absence;
Enter in box 44 the amount you deducted from employees
for union dues. Include amounts you paid to a parity or          ■   participate in a salary deferral arrangement; or
advisory committee that qualify for a deduction. Do not
include initiation fees. Also, do not include strike pay the     ■   work for you part-time.
union paid to union members in this box.                         For more information on how to calculate the PA, see
For more information, see Interpretation Bulletin IT-103,        Guide T4084, Pension Adjustment Guide. If you need more
Dues Paid to a Union or to a Parity or Advisory Committee.       help calculating a PA, see your pension plan administrator
                                                                 or call our Registered Plans Directorate at 1-800-267-3100 or
                                                                 613-954-0419 (in Ottawa).
Box 46 – Charitable donations
Enter the amount you deducted from the employee’s
                                                                 Unregistered retirement plans or arrangements
earnings for donations to registered charities in Canada.
                                                                 Measures ensure that the uniform limits on tax-deferred
                                                                 retirement savings take into consideration savings under
Box 50 – RPP or DPSP registration number
                                                                 three types of unregistered retirement plans or
Enter the seven-digit registration number we issue for a
                                                                 arrangements:
registered pension plan (RPP) or a deferred profit sharing
plan (DPSP) or the seven-digit plan identification number        ■   a specified retirement arrangement (SRA);
we issue for an unregistered foreign pension plan under
                                                                 ■   a government-sponsored retirement arrangement
which you report a pension adjustment (PA). Do this even
                                                                     (GSRA); and
if your plan requires only employer contributions.
                                                                 ■   a foreign pension plan.
However, if you make contributions to union pension
funds, you have to indicate the union’s plan number, which       For more information about the PA for these types of plans
the union has to give you. If an employee is a member of         or arrangements, call our Registered Plans Directorate at
more than one plan, insert only the number of the plan           1-800-267-3100 or 613-954-0419 (in Ottawa).
under which the employee has the largest PA.
                                                                 Box 54 – Payroll Account Number
Box 52 – Pension adjustment                                      Enter the 15-character Account Number that you use to
If you have a registered pension plan (RPP) or a deferred        send us your employees’ deductions. This number appears
profit sharing plan (DPSP), enter, in dollars only, the          at the top of your PD7A statement of account. Your Payroll
amount of the employee’s pension adjustment (PA) for the         Account Number should not appear on the two copies of
year. If you have to prepare more than one T4 slip for the       the T4 slip that you give to your employees.
employee because the employee worked for you in more
than one work location, report the PA proportionately on         Box 55 – Employee’s PPIP premiums
each T4 slip. If you cannot apportion the PA, report it on       Enter the provincial parental insurance plan (PPIP)
one slip.                                                        premiums that you deducted for employees working in
If an employee participates in one or more RPPs and/or           Quebec.
DPSPs, you have to calculate his or her PA using the total
amount of all pension credits accumulated by the employee        Box 56 – PPIP insurable earnings
under all these pension plans for the year.                      For employees working in Quebec, enter the total amount
                                                                 used to calculate the employee’s PPIP premiums, up to a
If an employee is on a leave of absence and is still accruing    maximum of $62,500 for 2010.
pensionable service or credits under the plan, there is a
requirement to report the PA on a T4 slip. This is true even     Leave the box blank if:
if the employee has no employment income in the tax year.
                                                                 ■   there are no insurable earnings;
Administrators of multiple employee plans (MEPs) would
report the PA for the employee on leave on a T4A slip.           ■   the insurable earnings are the same as the employment
                                                                     income in box 14; or
Leave box 52 blank if the employee participated in
your RPP or DPSP and one of the following applies:               ■   the insurable earnings are over the maximum for the
                                                                     year.
■   the calculated PA is a negative amount or zero;



12                                                       www.cra.gc.ca
Other information                                             77 – Workers’ compensation benefits repaid to the
The “Other information” area at the bottom of the T4 slip          employer
has boxes for you to enter codes and amounts that relate to   78 – Fishers – Gross income
employment commissions, taxable allowances and benefits,      79 – Fishers – Net partnership amount
deductible amounts, fishers’ income, and other entries if
                                                              80 – Fishers – Shareperson amount
they apply.
                                                              81 – Placement or employment agency workers – Gross
The boxes are not pre-numbered as they are in the top part         income
of the slip. Enter the codes and amounts that apply to the
                                                              82 – Taxi drivers or drivers of other passenger-carrying
employee.
                                                                   vehicles – Gross income
                                                              83 – Barbers or hairdressers – Gross income
Example
                                                              84 – Public transit pass
    Box – Case   Amount – Montant                             85 – Employee-paid premiums for private health
       40              2400     98                                 services plans
                                                              86 – Security options election

                                                              Detailed instructions for taxable benefits
  Note
  If more than six codes apply to the same employee, use      The following instructions explain how to report each of
  an additional T4 slip. Do not repeat all the data on the    the benefits in the above list. Some of these benefits must
  additional slip. Enter only the employer’s name and         include the goods and services tax (GST) and the provincial
  address, and the employee’s SIN and name, and               sales tax (PST, or QST in Quebec) if they apply, or the
  complete the required boxes in the “Other information”      harmonized sales tax (HST).
  area. Report each code and amount only once.                  Note
                                                                See Guide T4130, Employers’ Guide – Taxable Benefits and
Codes 30 to 86 – Taxable allowances and benefits,               Allowances, for details on how to calculate the value of
deductible amounts, employment commissions, and                 these benefits and which taxable benefits are subject to
other entries                                                   GST/HST.
30 – Board and lodging
31 – Special work site                                        Code 30 – Board and lodging
32 – Travel in a prescribed zone                              If you provided an employee with free or subsidized
                                                              housing, or board and lodging, enter code 30 and the
33 – Medical travel assistance
                                                              corresponding taxable amount. Also include this amount
34 – Personal use of employer’s automobile or motor           in box 14.
     vehicle
36 – Interest-free and low-interest loans                     Code 31 – Special work site
37 – Employee home-relocation loan deduction                  If the employee received a benefit for board and lodging at
                                                              a special work site in a prescribed zone and you completed
38 – Security options benefits
                                                              Form TD4, Declaration of Exemption – Employment at a Special
39 – Security options deduction – 110(1)(d)                   Work Site, enter code 31 and the corresponding amount
40 – Other taxable allowances and benefits                    (enter only the exempt portion that relates to work sites
41 – Security options deduction – 110(1)(d.1)                 within 30 kilometres from the nearest urban area having at
                                                              least 40,000 persons). Do not include this amount in box 14
42 – Employment commissions
                                                              or under code 30.
43 – Canadian Forces personnel and police deduction
53 – Deferred security option benefits                        Code 32 – Travel in a prescribed zone
66 – Eligible retiring allowances                             If you provided an employee living in a prescribed zone
                                                              with an amount for travel assistance, enter code 32 and the
67 – Non-eligible retiring allowances
                                                              corresponding amount. Include this amount in box 14. If
68 – Status Indian (exempt income) – Eligible retiring        any part was for medical travel assistance, see code 33.
     allowances
69 – Status Indian (exempt income) – Non-eligible retiring    Code 33 – Medical travel assistance
     allowances                                               If you provided an employee living in a prescribed zone
70 – Municipal officer’s expense allowance                    with an amount for medical travel assistance, identify only
71 – Status Indian employee                                   the medical part under code 33. Ensure the total of the
                                                              travel assistance is reported under code 32.
72 – Section 122.3 income – Employment outside Canada
73 – Number of days outside Canada                            Code 34 – Personal use of employer’s automobile or
74 – Past service contributions for 1989 or earlier years     motor vehicle
     while a contributor                                      If you provided an employee with the use of an automobile
75 – Past service contributions for 1989 or earlier years     or motor vehicle, enter code 34 and the amount
     while not a contributor                                  representing the benefit. Include this amount in box 14.

                                                      www.cra.gc.ca                                                      13
Code 36 – Interest-free and low-interest loans                   Code 53 – Deferred security option benefits
If you provided an employee with an interest-free or             If an employee receives a taxable benefit under a
low-interest loan, including a home-purchase and                 corporation’s agreement to issue its eligible publicly listed
home-relocation loan, because of an office or employment         shares or units of mutual fund trusts to the employee, and
(or intended employment), enter code 36 and the                  he or she wants to defer the taxable benefit until the
corresponding taxable benefit (resulting from the reduced        disposition of the eligible securities, enter code 53 and the
interest). Include this amount in box 14. If any amount was      corresponding amount. Do not include this amount in
for a home-relocation loan, see code 37. For more                box 14.
information, see Interpretation Bulletin IT-421, Benefits to
                                                                   Note
Individuals, Corporations and Shareholders from Loans or Debt.
                                                                   Under proposed changes, for stock options exercised
                                                                   after 4:00 p.m. EST on March 4, 2010, employees will no
Code 37 – Employee home-relocation loan deduction
                                                                   longer be able to defer the taxable benefit from being
If the taxable benefit you provided to your employee under         included in income.
code 36 is the result of an interest-free or low-interest
home-relocation loan, you have to identify the amount the
                                                                 Code 66 – Eligible retiring allowances
employee can deduct under code 37. Do not include this
                                                                 Enter the amount of retiring allowances (also called
amount in box 14.
                                                                 severance pay) that was paid in the year and is eligible for
                                                                 transfer to an RPP or RRSP, even if not transferred. Do not
Code 38 – Security options benefits
                                                                 include this amount in box 14. For more information on
If an employee received a taxable benefit under a                retiring allowances, see page 23.
corporation’s agreement to issue its eligible shares or units
of mutual fund trusts to the employee, enter code 38 and
                                                                 Code 67 – Non-eligible retiring allowances
the corresponding amount. Include this amount in box 14.
                                                                 Enter the amount of retiring allowances (also called
For more information, go to www.cra.gc.ca/stockoptions.
                                                                 severance pay) not eligible for transfer to an RPP or RRSP.
                                                                 Do not include this amount in box 14. For more information
Code 39 – Security options deduction – 110(1)(d)
                                                                 on retiring allowances, see page 23.
If the employee is entitled to a deduction under
paragraph 110(1)(d) of the Income Tax Act, enter code 39
                                                                 Code 68 – Status Indian (exempt income) – Eligible
and one-half of the amount you reported under code 38 for
                                                                 retiring allowances
those shares. Do not include this amount in box 14. For
                                                                 Enter the amount of retiring allowances (also called
more information, go to www.cra.gc.ca/stockoptions.
                                                                 severance pay) that was paid to a Status Indian in the year
                                                                 and is eligible for transfer to an RPP or RRSP, even if not
Code 40 – Other taxable allowances and benefits
                                                                 transferred. Do not include this amount in box 14. For more
If you provided an employee with taxable allowances or           information on retiring allowances, see page 23.
benefits that you did not include elsewhere on the T4 slip,
enter code 40 and the corresponding amount. Include this
                                                                 Code 69 – Status Indian (exempt income) – Non-eligible
amount in box 14. See Guide T4130, Employers’ Guide –
                                                                 retiring allowances
Taxable Benefits and Allowances, for details on calculating
                                                                 Enter the amount of retiring allowances (also called
taxable benefits.
                                                                 severance pay) that was paid to a Status Indian in the year
                                                                 and is not eligible for transfer to an RPP or RRSP. Do not
Code 41 – Security options deduction – 110(1)(d.1)
                                                                 include this amount in box 14. For more information on
If the employee is entitled to a deduction under                 retiring allowances, see page 23.
paragraph 110(1)(d.1) of the Income Tax Act, enter code 41
and one-half of the amount you reported under code 38 for
                                                                 Code 70 – Municipal officer’s expense allowance
those shares. Do not include this amount in box 14. For
                                                                 If you are a municipal corporation or board and you pay an
more information, go to www.cra.gc.ca/stockoptions.
                                                                 expense allowance to an elected officer to perform the
                                                                 duties of that office, enter the non-taxable portion under
Code 42 – Employment commissions
                                                                 code 70.
If an employee sold property or negotiated contracts for
you, enter code 42 and the amount of the employee’s
                                                                 Code 71 – Status Indian employee
commissions. Include this amount in box 14.
                                                                 If you are an employer paying non-taxable salary or wages
                                                                 to a Status Indian, see page 26.
Code 43 – Canadian Forces personnel and police
deduction
                                                                 Code 72 – Section 122.3 income – Employment outside
A deduction from taxable income can be claimed for the
                                                                 Canada
amount of employment earnings (including taxable
                                                                 If your employee is employed outside Canada and is
allowance) of Canadian Forces personnel and police who
                                                                 entitled to an overseas employment tax credit, in
are deployed outside Canada on a high-risk or current
                                                                 accordance with section 122.3 of the Income Tax Act, enter
moderate-risk operational mission. This deduction can be
                                                                 the qualifying amount under code 72. See page 20.
claimed by the employee if those earnings have been
included in calculating income, up to the maximum rate of
pay earned by a non-commissioned member of the
Canadian Forces (approximately $6,000 per month).

14                                                       www.cra.gc.ca
Code 73 – Number of days outside Canada                         ■   the use of an eligible cost-per-trip electronic payment
If your employee is entitled to an overseas employment tax          card. An eligible cost-per-trip electronic payment card is
credit, enter the number of qualifying days outside Canada          a card that is:
under code 73. See page 21.                                         – used for at least 32 one-way trips during an
                                                                      uninterrupted period not exceeding 31 days; and
Code 74 – Past service contributions for 1989 or earlier
years while a contributor                                           – issued by a public transit authority that records the
If an employee made past service contributions to a                   cost and usage and provides a receipt to that effect.
registered pension plan (RPP) for employment in 1989 or         Enter the total of amounts paid by the employee (for
earlier years while a contributor to an RPP, see                example, through payroll deductions) to purchase public
“Box 20 – RPP contributions” on page 10.                        transit passes. Also include amounts that you paid on
                                                                behalf of the employee that are reported as a taxable benefit
Code 75 – Past service contributions for 1989 or earlier        (code 40). The taxable benefit portion must also be included
years while not a contributor                                   in employment income (box 14).
If an employee made past service contributions to a
registered pension plan (RPP) for employment in 1989 or         Code 85 – Employee-paid premiums for private health
earlier years while not a contributor to an RPP, see            services plans
“Box 20 – RPP contributions” on page 10.                        An employee can claim, as a qualifying medical expense,
                                                                premiums he or she paid to a private health services plan.
Code 77 – Workers’ compensation benefits repaid to              Do not include this amount in box 14. The use of code 85 is
the employer                                                    optional; however, if you do not use this code, we may ask
Enter the amount of workers’ compensation benefits repaid       the employee to provide supporting documents.
to the employer that was previously included in the
employee’s salary. This allows employees to claim a             Code 86 – Security options election
corresponding deduction as other employment expenses on         Enter the total amount of the security option cash-outs that
their income tax and benefit returns.                           you have elected not to claim as an expense. This amount is
                                                                already included in box 14.
Code 78 – Fishers – Gross income
See page 21.
                                                                How to avoid common reporting errors
Code 79 – Fishers – Net partnership amount                      The most common reporting errors occur when you do not
See page 22.                                                    correctly complete the following boxes on the T4 slip:
                                                                ■   Box 24, EI insurable earnings;
Code 80 – Fishers – Shareperson amount
See page 22.                                                    ■   Box 26, CPP/QPP pensionable earnings;
                                                                ■   Box 28, Exempt (CPP/QPP, EI, and PPIP).
Code 81 – Placement or employment agency workers
gross income                                                    The following questions and answers may help you avoid
See page 22.                                                    these reporting errors and can serve as a checklist before
                                                                you file your information return.
Code 82 – Taxi drivers and drivers of other
passenger-carrying vehicles gross income                        CPP/QPP questions
See page 20.                                                    Was the employee exempt from CPP/QPP for the entire
                                                                reporting period?
Code 83 – Barbers or hairdressers gross income
See page 20.                                                    If yes, put an ”X” in box 28. Leave boxes 16 or 17 and 26
                                                                blank.
Code 84 – Public transit pass                                   If no, make sure that you deducted contributions for each
Individuals can claim the cost of monthly or longer             type of remuneration that is subject to CPP/QPP.
duration public transit passes. Public transit includes
transit by local bus, streetcar, subway, commuter train or      Did the employee turn 18 or 70 years old during the
bus, and local ferry. Eligible transit passes must allow for    reporting period?
unlimited use for the period they are valid and must be for     If yes, make sure that you:
transit in Canada.
                                                                ■   started to calculate the CPP contributions and
The public transit pass includes costs for:                         pensionable earnings effective the first pay dated on or
■   weekly passes if there are at least four consecutive            after the first of the month following the employee’s
    weekly passes in a 28-day period. Each weekly pass must         18th birthday; or
    give the holder the right to unlimited public transit use   ■   stopped calculating the CPP contributions and
    within an uninterrupted period of 5 to 7 days; and              pensionable earnings after the last pay date in the month
                                                                    of the employee’s 70th birthday.



                                                       www.cra.gc.ca                                                           15
     Note                                                         $25 per day for each such failure with a minimum penalty
     The requirements are different for QPP. For more             of $100 and a maximum of $2,500.
     information, see Guide TP-1015.G-V, Guide for
                                                                  Provide one of the following:
     Employers – Source Deductions and Contributions, which
     you can get from Revenu Québec.                              ■   two copies, sent by mail to their last known address;
Did the employee receive CPP or QPP pension benefits              ■   two copies, delivered in person; or
during the reporting period?
                                                                  ■   one copy distributed electronically (for example, by
If yes, make sure that you calculated the CPP contributions           email) if you have received the employee’s consent in
and pensionable earnings based on the number of months                writing or electronic format.
before the pension became payable.
                                                                  We suggest that you print the two T4 slips that you have to
     Note                                                         give to each employee on one sheet. For security purposes,
     The requirements are different for QPP. For more             do not print your Payroll Account Number (box 54) on
     information, see Guide TP-1015.G-V, Guide for                these copies.
     Employers – Source Deductions and Contributions, which
     you can get from Revenu Québec.                                  Note
                                                                      If T4 slips are returned as undeliverable, we suggest that
If no, leave box 26 blank.                                            you retain the slips with the employee’s file.
Did you deduct contributions from an employee’s
vacation pay, bonuses, director’s fees, or other taxable
benefits?                                                             Chapter 3 – T4 Summary
If yes, see Chapter 6 of Guide T4001, Employers’ Guide –
Payroll Deductions and Remittances, for information on
calculating contributions for vacation pay, bonuses, and
director’s fees. For information on taxable benefits, see
                                                                  I f you are filing electronically, do not send us a paper
                                                                    copy of the slips or summary. For more information, go
                                                                  to www.cra.gc.ca/electronicmedia.
Guide T4130, Employers’ Guide – Taxable Benefits and
                                                                  If you are filing on paper, use the T4 Summary, Summary of
Allowances.
                                                                  Remuneration Paid, to report the totals of the amounts
If no, make sure that you deducted contributions for each         reported on the related T4 slips. Send the original summary
type of remuneration that is subject to CPP or QPP.               and the related slips to the Ottawa Technology Centre. You
                                                                  can find the address at the back of this guide.
For more information about CPP contributions, see
Appendices 2 and 3 in Guide T4001, Employers’ Guide –             As part of our continuing efforts toward sustainable
Payroll Deductions and Remittances.                               development, we no longer mail out the pre-printed
                                                                  T4 Summary. You can get a T4 Summary from our Web site
Employment Insurance (EI) questions                               at www.cra.gc.ca/forms or by calling 1-800-959-2221.
Was the employee exempt from EI for the entire reporting
period?                                                           Completing the T4 Summary
If yes, put an “X” in box 28. Leave boxes 18 and 24 blank.        Report amounts in Canadian dollars and cents, even if they
                                                                  were paid in another currency. See Information Sheet
If no, make sure that you deducted premiums for each type         RC4152, Average Exchange Rates for 2010.
of remuneration that is subject to EI.
                                                                  Complete a separate T4 Summary for each of your payroll
Was the employee a student?                                       accounts. The totals you report on your T4 Summary have
                                                                  to agree with the totals you report on your T4 slips. Errors
If yes, make sure that you deducted premiums for each
                                                                  or omissions can cause unnecessary processing delays.
type of remuneration that is subject to EI, like you do for an
ordinary employee. There is no age limit for deducting EI
premiums.                                                         Detailed instructions
                                                                  In the area at the top of the T4 Summary, enter the
Filing T4 slips                                                   15-character Payroll Account Number that you use to send
                                                                  us your employees’ deductions, your operating or trade
For a description of the filing methods available, see            name, and your address.
“Chapter 4 – T4 information return” starting on page 17, or
go to www.cra.gc.ca/t4internet.                                   Year
                                                                  Enter the last two digits of the calendar year for which you
Distributing T4 slips to your                                     are filing the return.
employees
                                                                  Line 14 – Employment income
You must give employees their T4 slips on or before the last
                                                                  Enter the total of box 14 from all T4 slips.
day of February following the calendar year to which the
slips apply. If you do not, you may be subject to a penalty.
                                                                  Line 16 – Employees’ CPP contributions
The penalty for failing to distribute T4 slips to recipients is
                                                                  Enter the total of box 16 from all T4 slips.


16                                                       www.cra.gc.ca
Line 18 – Employees’ EI premiums                                 Amount enclosed
Enter the total of box 18 from all T4 slips.                     Whether you file electronically or file a paper return, you
                                                                 can make your payment in several different ways:
Line 19 – Employer’s EI premiums
                                                                 ■   My Payment is a payment option that allows you to
Enter your share of EI premiums (multiply the employees’             make payments online, using the CRA’s Web site, from
total premiums by the employer’s premium rate).                      an account at a participating Canadian financial
                                                                     institution. For more information, go to
Line 20 – Registered pension plan (RPP) contributions                www.cra.gc.ca/mypayment.
Enter the total of box 20 from all T4 slips.
                                                                 ■   You may be able to pay electronically using your
Line 22 – Income tax deducted                                        financial institution’s telephone banking, or automated
                                                                     bank machines. Contact your financial institution for
Enter the total of box 22 from all T4 slips.
                                                                     more information.
Line 27 – Employer’s CPP contributions                           ■   You can make your payment at your Canadian financial
Enter your share of CPP contributions.                               institution. Complete your remittance form and present it
                                                                     with your payment. The financial institution will date
Line 52 – Pension adjustment                                         stamp the bottom part and return the top part to you as a
Enter the total of box 52 from all T4 slips.                         receipt.
                                                                 ■   You can also send a cheque or money order payable to
Lines 74 and 75 – Canadian-controlled private                        the Receiver General to any tax centre, with a letter that
corporations or unincorporated employers                             indicates the tax year for which the payment applies, the
Enter the social insurance numbers of any proprietors or             amount covering your outstanding balance, and your
principal owners.                                                    Payroll Account Number. The addresses of our tax
                                                                     centres are listed at the end of this guide.
Lines 76 and 78 – Person to contact about this return
                                                                 ■   You can enclose a cheque or money order payable to the
Enter the name and telephone number of a person that we
                                                                     Receiver General for the balance owing with your
can call to get or clarify information on the T4 Summary.
                                                                     T4 information return.
Line 80 – Total deductions reported                                  Notes
Add the amounts reported on lines 16, 27, 18, 19, and 22 of          Regardless of the filing method, Threshold 2 remitters
the T4 Summary. Enter the total on line 80.                          must remit any balance due electronically or in person at
                                                                     their Canadian financial institution.
Line 82 – Minus: remittances                                         Threshold 2 remittances that are received by the CRA at
Enter the amount you remitted for the year under your                least one full day before the due date will be considered
Payroll Account Number.                                              to be received by a financial institution and a penalty
   Note                                                              will not be charged. See Guide T4001, Employers’ Guide –
   A remittance that was due in January of the current year          Payroll Deductions and Remittances, for more information
   (for deductions made in December of the previous year)            about Threshold 2 remitting requirements.
   is considered late when paid with the previous year’s             If you remit your payment late, any balance owing may
   information return (T4, T4A) and this return is filed after       be subject to penalties and interest at the prescribed rate.
   the remittance due date.
                                                                 Line 88 – Total number of T4 slips filed
Difference                                                       Enter the total number of T4 slips that you are including
Subtract line 82 from line 80. Enter the difference in the       with the T4 Summary.
space provided. If there is no difference between the total
deductions you reported and the amount you remitted for
the year, leave lines 84 and 86 blank. Generally, we do not
charge or refund a difference of $2 or less.                         Chapter 4 – T4 information return
Line 84 – Overpayment
If the amount on line 82 is more than the amount on line 80
(and you do not have to file another type of return for this
                                                                 I  n all instances, you have to file your T4 information
                                                                    return on or before the last day of February following
                                                                 the calendar year to which the information return applies.
account number), enter the difference on line 84. Attach a       If the due date falls on a Saturday or Sunday, or a public
note indicating the reason for the overpayment and               holiday, your return is due the next business day.
whether you want us to transfer this amount to another
                                                                 We consider your return to be filed on time if we receive it
account or another year, or refund the overpayment to you.
                                                                 or it is postmarked by the due date. If you fail to file it on
                                                                 time, we may assess a penalty. See “Penalties and interest”
Line 86 – Balance due                                            on page 5.
If the amount on line 80 is more than the amount on line 82,
enter the difference on line 86.



                                                        www.cra.gc.ca                                                          17
If you have more than one payroll account, you will have to         complete, print, and transmit your T4 information return,
file a separate information return for each account.                which includes the T4 slips and the related T4 Summary.
                                                                    For information about this filing method, go to
If you have overpaid, include a letter explaining the reason
                                                                    www.cra.gc.ca/t4internet.
for the overpayment and how you want us to apply it. If
you owe an amount, indicate on your cheque which                  Internet filing is available from January 10, 2011, to early
account and tax year the payment is for.                          December 2011.

Service bureaus filing returns                                    Web access code
If a service bureau is filing an information return for you,      To file your return using Internet File Transfer, T4 Desktop
you are still responsible for the accuracy of the information     application, or T4 Web forms, you need a Web access code
and for any balance owing.                                        (WAC). If you qualify, you will receive a letter providing
                                                                  you with your WAC. If you do not receive a WAC, call our
Branch offices filing returns                                     help desk at 1-877-322-7849.
If the branch office of a company has sent in                        Note
CPP contributions, EI premiums, and income tax                       Service bureaus use their own Payroll Account Number
deductions under a separate account that only that branch            and Web access code (WAC)—not the WAC of each of
uses, file the T4 information return of that branch as a             the T4 information returns in the submission—to submit
separate return.                                                     the file.

Filing methods                                                    My Business Account
If you file 1 to 50 T4 slips, we encourage you to file over the   My Business Account allows you to file your
Internet in eXtensible mark-up language (XML) by Internet         T4 information return (up to 3.5 MB) over the Internet
File Transfer. However, you can file up to 50 T4 slips on         without a Web access code, using T4 Web forms or Internet
electronic media (DVD, CD, or diskette) or on paper.              File Transfer. You can also verify whether your return has
                                                                  been processed, view your payroll account balance and
If you file more than 50 T4 slips, you must file the return       transactions, view your remitting requirements, and access
over the Internet.                                                other services for your payroll account.
If you use commercial or in-house-developed payroll               Business owners can authorize their employees and
software to manage your business, you can file up to              representatives (for example, service bureaus) to have
150 MB by Internet File Transfer. For example, a service          online access to their payroll account information.
bureau can file multiple T4 returns in one submission,            Authorized employees and representatives use the
provided the total submission does not exceed the 150 MB          “Represent a Client” service to access information and
restriction.                                                      online services on behalf of business owners.
     Note                                                         Log in to My Business Account using your user ID and
     If your return is more than 150 MB, you can either           password. If you have not registered with My Business
     compress your return or you can divide it so that each       Account, go to www.cra.gc.ca/mybusinessaccount. Please
     submission is no more than 150 MB.                           note that it may take up to five business days to get your
For more information about these filing methods, go to            CRA security code in the mail.
www.cra.gc.ca/t4internet.                                         For details, go to www.cra.gc.ca/mybusinessaccount.

Filing over the Internet                                          Filing on paper
■   Internet File Transfer – This convenient filing method is     If you file 1 to 50 T4 slips, we encourage you to file over the
    for employers who use payroll software to manage their        Internet in eXtensible mark-up language (XML) by Internet
    business. Internet File Transfer allows you to transmit a     File Transfer. However, you can file up to 50 T4 slips on
    return with a maximum file size of 150 MB. All you need       paper.
    is a Web browser to connect to the Internet, and your
    software will create, print, and save your electronic         Complete one copy of the T4 slip for each employee and
    T4 information return in XML format. For information          send them with your T4 Summary. Enter the information
    about this filing method, contact your software publisher     for two different employees on one sheet. This will allow us
    or go to www.cra.gc.ca/t4internet.                            to process your information return faster. You must keep a
                                                                  copy of the T4 slips and the T4 Summary for your files.
■   T4 Desktop application – This convenient filing method
    is for employers who have to file a number of T4 slips.       After you complete your paper return, mail it to:
    This downloadable desktop application lets you create,            Ottawa Technology Centre
    save, print, and submit your electronic T4 information            Canada Revenue Agency
    return, which includes the T4 slips and the related               875 Heron Road
    T4 Summary. For information about this filing method,             Ottawa ON K1A 1G9
    go to www.cra.gc.ca/t4internet.
■   T4 Web forms – This convenient filing method is for
    employers who have to file 1 to 6 T4 slips. With T4 Web
    forms, all you need is a compatible Web browser to

18                                                       www.cra.gc.ca
Filing on electronic media                                      addresses of our tax centres are listed at the end of this
For an explanation of the technical specifications and          guide. Do not file an amended T4 Summary.
instructions you need to file on electronic media (DVD, CD,
or diskette), go to www.cra.gc.ca/electronicmedia.              Cancelling slips
Do not send a printed copy of the forms to us. You can          Cancelling slips electronically
print one copy to keep for your file.                           A cancelled slip is considered to be the same as an
                                                                amended slip. See “Amending slips electronically” above.
  Note
  If you use electronic media (DVDs, CDs or diskettes) to       Cancelling paper slips
  file more than 50 information returns (slips), you are        Send us a copy of the original slip clearly marked
  now required to file by Internet File Transfer in             “CANCELLED.” The addresses of our tax centres are listed
  eXtensible mark up language (XML).                            at the end of this guide. Do not file a cancelled
                                                                T4 Summary. Send two copies of the cancelled slip to the
                                                                employee in the same way you sent the originals.
 Chapter 5 – After you file                                         Note
                                                                    If you notice errors on the T4 slips before you file them

W      hen we receive your information return, we check it
       to see if you have prepared it correctly. After an
initial review, we enter your return into our processing
                                                                    with us, you can correct them by preparing new
                                                                    information slips and removing any incorrect copies
                                                                    from the return. If you do not prepare a new slip, initial
system, which captures the information and performs                 any changes you make on the slip. Be sure to also correct
various validity and balancing checks. If there are any             the T4 Summary.
problems, we may contact you.
We also verify the calculations you made on the T4 slips to     Adding slips
make sure that the pensionable and insurable earnings you       After you file your T4 information return, you may
reported agree with the CPP and EI deductions you               discover that you need to send us additional T4 slips. If you
remitted. For more information, see Chapter 4 of                have original slips that were not filed with your return, file
Guide T4001, Employers’ Guide – Payroll Deductions and          them separately either electronically or on paper.
Remittances.
                                                                If the total number of T4 slips you file is more than 50 slips
                                                                for the same calendar year, you have to file the additional
Amending, cancelling, adding, or                                slips over the Internet.
replacing slips
                                                                Adding slips electronically
Amending slips                                                  We accept additional original T4 slips in electronic format.
After you file your information return, you may notice          Go to www.cra.gc.ca/t4internet.
that you made an error when preparing the T4 slips. If so,
you will have to prepare amended slips to correct the           Adding slips on paper
information.                                                    When submitting additional slips on paper, clearly identify
If you receive a pensionable and insurable earnings review      the new slips by writing “ADDITIONAL” at the top of each
(PIER) report, do not send us amended slips. Instead,           slip. Send a copy of the slips to any tax centre. The
respond to the PIER advising of the changes required for        addresses of our tax centres are listed at the end of this
the employees on the listing. For more information, see         guide. Do not file an additional T4 Summary.
Chapter 4 of Guide T4001, Employers’ Guide – Payroll
Deductions and Remittances.                                     Replacing slips
                                                                If you issue T4 slips to replace copies your employees lost
Amending slips electronically                                   or destroyed, do not send us copies of these slips. Clearly
No matter how you originally filed, the method for              identify them as duplicate copies, and keep a copy for your
filing an amended return (cancelling or amending                records.
slips) is based on the number of amended slips. Go
to www.cra.gc.ca/t4internet and select the
“Amending returns” option.
                                                                Pension adjustment (PA)
                                                                You have to recalculate a pension adjustment (PA) in a
Amending paper slips                                            registered pension plan when all of the following
Clearly identify the new slips as amended slips by writing      conditions are met:
“AMENDED” at the top of each slip. Make sure you                ■   an employee returns from a leave of absence or a period
complete all the necessary boxes, including the information         of reduced service;
that was correct on the original slip. Send two copies of the
amended slips to the employee in the same way you sent          ■   the service was not previously pensionable service; and
the originals.                                                  ■   by April 30 of the following year:
Send one copy of the amended slips to any tax centre with a         – benefits are retroactively provided under a defined
letter explaining the reason for the amendment. The                   benefit provision for the period concerned and the

                                                       www.cra.gc.ca                                                         19
      employee makes the commitment to purchase the            Box 10 – Province of employment
      benefits; or                                             Enter the provincial or territorial abbreviation to show
                                                               where the worker reported for work (see the list on page 9).
  – retroactive contributions are made by the employee or
    the employer to a money purchase provision.
                                                               Box 12 – Social insurance number
     Note                                                      Enter the social insurance number (SIN) shown on the
     If the commitment to purchase benefits is made after      worker’s SIN card.
     April 30, a past service pension adjustment will be
     calculated.                                               Box 14 – Employment income
If a recalculated PA applies, you have to report an amended    Leave this box blank. See “Other information” below.
PA for each year after 1989 that is affected by the leave.
                                                               Box 18 – Employee’s EI premiums
You do not have to report an amended PA when the
                                                               Enter the EI premiums remitted on behalf of the worker
difference between the previously reported PA and the
                                                               (worker’s part only).
amended PA is less than $50. However, you do have to
report one if an employee asks you to accurately report
                                                               Box 24 – EI insurable earnings
the PA, or if we ask you to report the amended PA.
                                                               Enter the amount of the worker’s insurable earnings on
For the years in which you did not previously report a PA      which you calculated the EI premium.
for the employee, you have to file an amended T4 slip
showing the correct PA. If you previously reported a PA for    Box 29 – Employment code
the employee in a particular year, you have to show the        Enter the appropriate code for the occupation of the
total PA that applies for that year on an amended T4 slip.     worker. Enter code 13 for a barber or hairdresser or
For information on recalculating a PA, see Guide T4084,        code 12 for a taxi driver or driver of another
Pension Adjustment Guide. For information on calculating       passenger-carrying vehicle.
and reporting a past service pension adjustment (PSPA),
see Guide T4104, Past Service Pension Adjustment Guide.        Box 55 – Employee’s PPIP premiums
                                                               Enter the PPIP premiums remitted on behalf of the worker
                                                               (worker’s part only) while he or she worked in Quebec.
Data used by other programs
Other federal government departments use T4 information.       Box 56 – PPIP insurable earnings
For example, Human Resources and Skills Development            For workers working in Quebec, enter the total amount
Canada (HRSDC) uses the information on the T4 slip to          used to calculate the workers’ PPIP premiums, up to a
update a person’s record of earnings file.                     maximum of $62,500 for 2010.
The information on CPP contributions that we send to
HRSDC determines the CPP benefits that a person will           Other information
receive.                                                       Enter the amounts that relate to the gross earnings of the
                                                               worker, using code 83 for a barber or hairdresser and
                                                               code 82 for a taxi driver or driver of another
                                                               passenger-carrying vehicle.
 Chapter 6 – Special situations
                                                               Employees with power saws or tree
Barbers and hairdressers, and taxi                             trimmers
drivers and drivers of other                                   If you are an employer in the forestry business, you may
passenger-carrying vehicles                                    have employees who, according to their contracts, have to
If these workers are your employees, you have to deduct        use their own power saws or tree trimmers at their own
CPP/QPP contributions, EI premiums, PPIP premiums,             expense.
and income tax as you would for regular employees. If          In box 14, “Employment income,” include rental payments
these workers are not your employees, you have to              you made to employees for the use of their own power
complete a T4 slip for EI and PPIP purposes only. Complete     saws or tree trimmers. You should not reduce the amount
the following entries on the slip.                             in box 14 by the cost or value of saws, trimmers, parts,
                                                               gasoline, or any other materials the employee supplies.
Employer’s name
Enter your operating or trade name.
                                                               Employees outside Canada
Employee’s name and address                                    In situations where you pay CPP on behalf of your
Enter the worker’s name and address, including the             employee who is working outside Canada, for all or part of
province or territory and postal code.                         the year, you have to prepare a T4 slip. See page 11,
                                                               “Box 29 – Employment code,” for specific T4 reporting
                                                               instructions.




20                                                     www.cra.gc.ca
Overseas employment tax credit                                  For more information on fishing income, see Guide T4005,
If you employ a resident of Canada to work outside Canada       Fishers and Employment Insurance and Guide T4004, Fishing
for more than six consecutive months, the employee may be       Income.
entitled to an overseas employment tax credit. The six
consecutive months of employment can start in the current       Employer’s name
year or in a previous year. The employment duties               Enter your operating or trade name.
performed outside Canada must either be to get a contract
for the employer or relate to a contract under which the        Employee’s name and address
employer carried on business outside Canada. See                Enter the fisher’s name and address, including the province
Interpretation Bulletin IT-497, Overseas Employment Tax         or territory and postal code.
Credit, and Chapter 7 of Guide T4001, Employers’ Guide –
Payroll Deductions and Remittances.                             Box 10 – Province of employment
                                                                Enter the provincial or territorial abbreviation to indicate
How to complete the T4 slip                                     where the fisher reported for work (see the list on page 9).
Box 14 – Employment income
Report the total amount of remuneration you paid that           Box 12 – Social insurance number
relates to any employment outside Canada. Do this even if       Enter the social insurance number (SIN) shown on the
an employee has received a letter of authorization from a       fisher’s SIN card.
tax services office or tax centre that allows you to reduce
the amount of income tax you deduct from the employee’s         Box 14 – Employment income
income.                                                         Leave blank. Fishing income is reported using codes 78, 79,
                                                                and 80. See the “Other information – Fishing income”
On the slip, show the income that qualifies for the
                                                                section on the next page.
reduction and the number of days the employee worked
outside Canada.
                                                                Boxes 16 and 17 – Employee’s CPP/QPP contributions
In the “Other information” area, enter in one of the boxes      Do not complete this box. Fishing income is not subject to
code 72 and the income qualifying under section 122.3 of        CPP/QPP contributions.
the Income Tax Act. Also enter in one of the boxes code 73
and the number of days the employee worked outside              Box 18 – Employee’s EI premiums
Canada. The number of days should be a three-digit              Enter the EI premiums you deducted from the fisher’s gross
number that you enter at the beginning of the                   income.
box “Amount.”
                                                                Box 24 – EI insurable earnings
Example                                                         Enter the amount of the fisher’s insurable earnings on
                                                                which you calculated the EI premiums.
    Box – Case     Amount – Montant

       73        089                                            Box 28 – Exempt (CPP/QPP, EI, and PPIP)
                                                                Enter an “X” under CPP/QPP (fisher’s earnings are not
                                                                pensionable).

Fishing income                                                  Box 29 – Employment code
                                                                Enter employment code 17.
Fishing income is reported on the T4 slip.
Fishing income (for example, proceeds of the catch paid to      Box 55 – Employee’s PPIP premiums
a self-employed fisher) and employment income (for              Enter the PPIP premiums you deducted from gross income
example, plant income) can be reported on the same T4 slip      of fishers working in Quebec.
or on separate T4 slips.
                                                                Box 56 – PPIP insurable earnings
The instructions that follow are for fishing income paid to a
                                                                For fishers working in Quebec, enter the total amount used
self-employed fisher. For instructions on paying
                                                                to calculate the fisher’s PPIP premiums, up to a maximum
employment income to an employee, see the detailed
                                                                of $62,500 for 2010.
instructions that start on page 8.
  Notes                                                         Other information – Fishing income
  Do not use code 78, 79, or 80 to report employment
                                                                Code 78 – Fishers – Gross income
  income. Use box 14. See “Box 14 – Employment income”
  on page 9.                                                    Enter the amount paid or payable to the fisher from the
                                                                proceeds of a catch. Do not include this amount in box 14.
  Reporting paid or payable self-employed fisher income
  depends on whether you are using the cash method or           In addition, report either the net partnership or owner
  accrual method of accounting. For an explanation of           amount using code 79 or the shareperson amount using
  these methods, see Chapter 1 of Guide T4004, Fishing          code 80.
  Income.


                                                       www.cra.gc.ca                                                       21
     Note                                                        employees in Quebec). The client of the agency has to
     This income does not include amounts paid for a catch       report these amounts on a T4 slip.
     or part of a catch made by other persons who were not
     members of the crew. For more information, see              Agency that hires a worker under a contract
     “Calculating the insurable earnings of a fisher” in         for service
     Guide T4005, Fishers and Employment Insurance.
                                                                 An agency that hires a worker under a contract for service
Code 79 – Fishers – Net partnership amount                       (that is, an independent worker) is not required to deduct
Enter the amount that is the product of the gross income         CPP/QPP contributions, EI premiums, PPIP premiums, or
(or gross value of the catch) reported under code 78, minus      income tax since the worker is self-employed. Because the
the 25% prescribed amount and the total amount paid to           worker is self-employed, neither the agency nor the client is
the sharepersons reported under code 80, multiplied by           required to file a T4 slip. However, you may be required to
your partnership agreement allocation. (See Example 5 in         file a T4A slip. See Guide RC4157, Deducting Income Tax on
Guide T4005, Fishers and Employment Insurance.) Include this     Pension, and Other Income and Filing the T4A Slip and
amount in box 24 (box 56 for fishers in Quebec). Do not          Summary.
include this amount in box 14.
                                                                 How to complete the T4 slip
Code 80 – Fishers – Shareperson amount                           In all cases, except where an agency hires a worker under a
Enter the amount paid or payable to the fisher from the          contract for service, you complete the T4 slip as follows:
proceeds of a catch based on the sharing arrangement
agreed to before embarking on the fishing trip. Include this     Employer’s name
amount in box 24 (box 56 for fishers in Quebec) and with
                                                                 Enter your operating or trade name.
code 78. Do not include this amount in box 14.
                                                                 Employee’s name and address
Placement or employment agency                                   Enter the employee’s/worker’s name and address,
workers                                                          including the province or territory and postal code.
These guidelines apply to employees/workers engaged by
placement or employment agencies, in the following four          Box 10 – Province of employment
situations:                                                      Enter the provincial or territorial abbreviation to show
                                                                 where the employee/worker reported to work (see the list
■   agency that hires the employee;                              on page 9).
■   agency that pays the worker;
                                                                 Box 12 – Social insurance number
■   agency whose client pays the worker; or                      Enter the social insurance number (SIN) shown on the
■   agency that hires a worker under a contract for service.     employee’s/worker’s SIN card.

                                                                 Box 14 – Employment income
Agency that hires the employee
                                                                 Report the gross earnings before deductions only if the
An agency that hires an employee (even if he or she is           agency hired the employee. If the agency paid the worker
located at a client’s premises) has to deduct CPP/QPP            or the agency’s client paid the worker, leave this box
contributions, EI premiums, income tax, and PPIP                 blank. See “Code 81” on the following page.
premiums (for workers in Quebec) from amounts paid to
these employees. The agency also has to report these             Boxes 16 and 17 – Employee’s CPP/QPP contributions
amounts on a T4 slip for the employee.
                                                                 Enter the CPP/QPP contributions you deducted from the
                                                                 employee’s/worker’s gross earnings.
Agency that pays the worker
If an agency places a worker in employment under the             Box 18 – Employee’s EI premiums
direction and control of a client of the agency and the          Enter the EI premiums you deducted from the
agency pays the worker, the agency is not required to            employee’s/worker’s gross earnings. If the agency’s client
deduct income tax, but is required to deduct CPP/QPP             paid the worker, leave this box blank.
contributions, EI premiums, and PPIP premiums (for
workers in Quebec), from amounts paid to these workers.          Box 22 – Income tax deducted
The agency also has to report these amounts on a T4 slip for     Enter the total income tax you deducted from the
the worker.                                                      employee’s/worker’s remuneration. This includes the
                                                                 federal, provincial (except Quebec), and territorial taxes
Agency whose client pays the worker                              that apply. If the agency paid the worker, leave this box
If an agency places a worker in employment under the             blank.
direction and control of a client of the agency and the client
of the agency pays the worker, the client is required to         Box 24 – EI insurable earnings
deduct CPP/QPP contributions and income tax but is not           Enter the amount of the employee’s/worker’s insurable
required to deduct EI premiums or PPIP premiums (for             earnings on which you calculated the EI premiums. If the
                                                                 agency’s client paid the worker, leave this box blank.

22                                                      www.cra.gc.ca
Box 26 – CPP/QPP pensionable earnings                           Retiring allowances
Enter the amount of the employee’s/worker’s pensionable         Starting in 2011 (for the 2010 tax year) retiring allowances
earnings on which you calculated the CPP/QPP                    will be reported on the T4 slip instead of the T4A slip.
contributions.
                                                                A retiring allowance (also called severance pay) is an
Box 29 – Employment code                                        amount paid to officers or employees when or after they
Enter employment code 11. If the agency hired the               retire from an office or employment, in recognition of long
employee, leave this box blank.                                 service or for the loss of office or employment.
                                                                A retiring allowance includes:
Box 55 – Employee’s PPIP premiums
Enter the PPIP premiums you deducted from the                   ■   payments for unused sick leave credits on termination;
employee’s/worker’s gross earnings while he or she                  and
worked in Quebec. If the agency’s client paid the worker,       ■   amounts individuals receive when their office or
leave this box blank.                                               employment is terminated, even if the amount is for
                                                                    damages (such as wrongful dismissal) when the
Box 56 – PPIP insurable earnings                                    employee does not return to work.
For employees/workers working in Quebec, enter the total
amount used to calculate the employee’s/worker’s PPIP           A retiring allowance does not include:
premiums, up to a maximum of $62,500 for 2010. If the           ■   a superannuation or pension benefit;
agency’s client paid the worker, leave this box blank.
                                                                ■   an amount an individual receives as a result of an
Code 81                                                             employee’s death (these payments may be treated as
                                                                    death benefits);
In the “Other information” area at the bottom of the T4 slip,
use code 81 and enter the gross earnings of placement and       ■   a benefit derived from certain counselling services;
employment agency workers. If the agency hired the
employee, leave this box blank.                                 ■   payments for accumulated vacation leave not taken prior
                                                                    to retirement;

Repayment of salary or wages by an                              ■   wages in lieu of termination notice (see Guide T4001,
                                                                    Employers’ Guide – Payroll Deductions and Remittances);
employee                                                            and
When an employee repays an employer, in the same or a
                                                                ■   damages for violations or alleged violations of an
later year, for salary or wages paid when the employee did
                                                                    employee’s human rights awarded under human rights
not perform his or her duties (for example, the employee
                                                                    legislation to the extent these amounts are not taxable.
was ill and received payments from a wage-loss
replacement plan), the repayment is considered to be a          If you pay a retiring allowance to a resident of Canada,
repayment of salary and wages. It may be claimed as a           deduct income tax from any part you pay directly to the
deduction on the employee’s income tax and benefit return.      recipient. Use the following lump sum withholding rates to
You should give the employee a letter confirming the date       deduct income tax:
and the amount repaid.
                                                                ■   10% (5% for Quebec) on amounts up to and including
  Note                                                              $5,000;
  You cannot adjust the employee’s T4 slip to reduce the
  total employment income or the CPP pensionable and EI         ■   20% (10% for Quebec) on amounts over $5,000 up to and
  insurable earnings. In addition, you cannot adjust your           including $15,000; and
  pay records to reflect the amount of the repayment. Your      ■   30% (15% for Quebec) on amounts over $15,000.
  part for CPP pensionable and EI insurable earnings is
  not refundable.                                               Recipients may have to pay additional tax on these
                                                                amounts when they file their returns. To avoid this
                                                                situation, if a recipient requests it, you can:
Example
In September 2010, Peter became ill and was unable to           ■   calculate the annual tax to deduct from the recipient’s
work. You continue to pay his regular salary. In                    yearly remuneration, including the lump-sum payment
February 2011, he begins to receive payments from a                 (see Guide T4032, Payroll Deductions Tables);
wage-loss replacement plan and repays you the amount of         ■   calculate the annual tax to deduct from the recipient’s
salary he received from September 2010 to February 2011.            yearly remuneration, not including the lump-sum
Do not adjust his 2010 T4 slip to reduce the total                  payment; and
employment income and CPP/QPP pensionable and EI or
PPIP insurable earnings or the current-year pay records to      ■   subtract the second amount from the first amount.
reflect the amount of repayment. Peter can claim a              The result is the amount you deduct from the lump-sum
deduction for the repayment on his 2011 income tax and          payment if the recipient requests it.
benefit return by providing a copy of the letter you gave
him confirming the date and the amount repaid.                  Do not deduct income tax from a lump-sum payment if a
                                                                recipient’s total earnings received or receivable during the
                                                                calendar year, including the lump-sum payment, are less

                                                       www.cra.gc.ca                                                          23
than the “claim amount” on their Form TD1, Personal Tax           The part that you transfer cannot be more than the
Credits Return. This does not apply to lump-sum payments          employee’s available RRSP deduction limit for the year.
paid to non-residents.
                                                                  You do not have to deduct income tax on the amount of
Do not deduct CPP contributions or EI premiums from               eligible retiring allowance that is transferred directly to an
retiring allowances.                                              employee’s RRSP or to an RPP on behalf of the employee.
                                                                  You also do not have to deduct income tax on any part of
If you pay a retiring allowance to a non-resident of
                                                                  the retiring allowance that your employee transfers to a
Canada, you have to withhold 25% of the retiring
                                                                  spousal or common-law partner’s RRSP if you have
allowance (subject to various tax conventions and
                                                                  reasonable grounds to believe your employee can deduct
agreements). Send this amount to the Receiver General on
                                                                  the RRSP contribution when filing his or her personal
the non-resident’s behalf.
                                                                  income tax and benefit return. For more information, see
                                                                  the section called “RRSP contributions you withhold from
Transfer of a retiring allowance                                  remuneration” in Chapter 5 of Guide T4001, Employers’
Employees with years of service before 1996 may be able to        Guide – Payroll Deductions and Remittances.
directly transfer all or part of a retiring allowance to a
                                                                  The portion of the retiring allowance paid in each year that
registered pension plan (RPP) or a registered retirement
                                                                  is eligible for transfer should be reported in the “Other
savings plan (RRSP). This part is commonly referred to as
                                                                  information” area, using code 66 (code 68 in the case of a
the eligible portion or the amount eligible for transfer. A
                                                                  Status Indian). Amounts not eligible for transfer are
retiring allowance may include an eligible portion and a
                                                                  reported in the “Other information” area using code 67
non-eligible portion.
                                                                  (code 69 in the case of a Status Indian). For example, if an
A retiring allowance may be paid over one or more years.          employee receives $60,000 payable in instalments of $10,000
The amounts paid in any particular year may be transferred        over 6 years and has an eligible amount of $40,000, the
to an RRSP or an RPP. The amounts transferred cannot              amounts reported in the first 4 years should be reported
exceed the employee’s eligible portion of the retiring            using code 66, while the amounts paid in years 5 and 6
allowance minus the eligible portion transferred by you in a      should be reported using code 67.
prior year.
                                                                  For more information about retiring allowances, see
The amount that is eligible for transfer under                    Interpretation Bulletin IT-337, Retiring Allowances,
paragraph 60(j.1) of the Income Tax Act (the Act) is              Pamphlet T4145, Electing Under Section 217 of the Income Tax
limited to:                                                       Act and Guide T4061, NR4 – Non-Resident Tax Withholding,
                                                                  Remitting, and Reporting.
■   $2,000 for each year or part of a year before 1996 that the
    employee or former employee worked for you (or a
    person related to you); plus                                  Salary deferral arrangements
■   $1,500 for each year or part of a year before 1989 of that    A salary deferral arrangement is a plan or arrangement
    employment in which none of your contributions to the         made between an employee and an employer. Under such
    RPP or deferred profit sharing plan (DPSP) were vested        an arrangement, an employee postpones receiving salary
    in the employee’s name when you paid the retiring             and wages to a later year. Treat the deferred salary and
    allowance. To determine the equivalent number of years        wages as employment income in the year the employee
    of vesting, refer to the terms of the particular plan. The    earns the amount. Report it on the employee’s T4 slip for
    number can be a fraction.                                     that year.

You can only transfer the eligible portion of the retiring
allowance under paragraph 60(j.1) of the Act to the
                                                                  Prescribed plans or arrangements
employee’s own RRSP or to an RPP under which your                 Prescribed plans or arrangements described in advance
employee is the annuitant. The eligible portion cannot be         income tax ruling ATR39, Deferred Salary Leave Plan, are not
directly transferred to a spousal or common-law partner’s         covered by the above salary deferral rules. Treat the
RRSP under paragraph 60(j.1) of the Act. If you transfer the      deferred amounts in these cases as income in the year the
amount to an RPP, you may have to report a pension                employee receives them. Report the income on the
adjustment (PA). For information, contact your plan               employee’s T4 slip for that year.
administrator.
                                                                  To find out how to report pension adjustments under these
Your employee may choose not to use all or any portion of         circumstances, see Guide T4084, Pension Adjustment Guide.
the amount eligible for transfer under paragraph 60(j.1) of
the Act. If your employee has available RRSP deduction            Salary paid while the participant is working
limit, your employee may transfer some or all of the
                                                                  How to complete the T4 slip
retiring allowance to a spousal or common-law partner
                                                                  Prepare the T4 slip in the following way when you pay a
RRSP up to his or her RRSP deduction limit.
                                                                  salary to the participant while he or she is working.
Your employee may also ask you to transfer some or all of
the non-eligible portion of the retiring allowance to his or      Box 14 – Employment income
her RRSP, or to a spousal or common-law partner’s RRSP.           Enter the participant’s net salary (the salary minus the
The non-eligible portion of a retiring allowance is the           deferred amounts) while the person was working.
amount that exceeds the amount eligible for direct transfer.


24                                                        www.cra.gc.ca
Boxes 16 and 17 – Employee’s CPP/QPP contributions              Box 24 – EI insurable earnings
Enter the CPP/QPP contributions you deducted from the           Leave this box blank.
participant’s net salary (the salary minus the deferred
amounts) while the person was working.                          Box 26 – CPP/QPP pensionable earnings
                                                                Enter the amount of the participant’s pensionable earnings
Box 18 – Employee’s EI premiums                                 on which you calculated the CPP/QPP contributions.
Enter the EI premiums you deducted from the participant’s
gross salary (including deferred amounts) while the person      Box 28 – Exempt (CPP/QPP, EI, and PPIP)
was working.                                                    Enter an “X” under EI. Do not complete the CPP/QPP or
                                                                PPIP part of this box, unless the earnings were exempt for
Box 22 – Income tax deducted                                    the entire period of employment.
Enter the total income tax you deducted from the
participant’s remuneration. This includes the federal,          Box 55 – Employee’s PPIP premiums
provincial (except Quebec), and territorial taxes that apply.   Leave this box blank.

Box 24 – EI insurable earnings                                  Box 56 – PPIP insurable earnings
Enter the amount of insurable earnings on which you             Leave this box blank.
calculated the participant’s EI premiums.

Box 26 – CPP/QPP pensionable earnings
                                                                Salary paid in error
Enter the amount of the participant’s pensionable earnings      If, by mistake, you make a payment or an overpayment to
on which you calculated the CPP/QPP contributions.              an employee who is not entitled to receive it, we will not
                                                                consider this amount to be salary, wages, or an advance.
Box 28 – Exempt (CPP/QPP, EI, and PPIP)                         Do not include the amount in the employee’s income for
Do not complete the CPP/QPP, EI, or PPIP part of this box,      the year it is received. If, after issuing a T4 slip for the
unless the earnings were exempt for the entire period of        employee, you determine that you made a payment by
employment.                                                     mistake, you must issue an amended T4 slip for that year to
                                                                exclude this amount. When the employee repays the
Box 55 – Employee’s PPIP premiums                               amount in the same or a later year, he or she is not allowed
                                                                to deduct it from income.
Enter the PPIP premiums you deducted from the
participant’s gross earnings (including deferred amounts)
while the person was working in Quebec.                         Example
                                                                In 2010, because of a calculation error, you overpaid your
Box 56 – PPIP insurable earnings                                employee $300. She agrees to repay this amount in 2011.
For participants working in Quebec, enter the total amount      You may amend the 2010 T4 slip to reduce the total
used to calculate the participant’s PPIP premiums, up to a      employment income, as well as the CPP/QPP pensionable
maximum of $62,500 for 2010.                                    and EI insurable earnings, by $300. Do not adjust the
                                                                amount of CPP/QPP, EI, and income tax deducted. The
Deferred amounts paid to the participant                        employee will not be able to claim a deduction from income
                                                                in the 2011 tax year for the repayment, but she can amend
during the leave period                                         her 2010 income tax and benefit return.
How to complete the T4 slip
Prepare the T4 slip in the following way when you pay the
                                                                However, the amount should be included on a T4 slip in
deferred amounts to the participant during the leave
                                                                the following situations:
period.
                                                                ■   The employee says that he or she will not repay the
Box 14 – Employment income                                          amount. The amount should be included in employment
Enter the total deferred amounts paid to the participant            income in the year of the overpayment.
during the leave period.
                                                                ■   The employer forgoes his or her right to the amount. The
                                                                    amount should be included in employment income in the
Boxes 16 and 17 – Employee’s CPP/QPP contributions                  year of forgiveness.
Enter the CPP/QPP contributions you deducted from the
participant’s deferred amounts you paid during the leave        ■   The error was obvious. If it should have been obvious to
period.                                                             the employee that there was an error in the amount
                                                                    received and the employee made no effort to correct the
Box 18 – Employee’s EI premiums                                     error, the amount should be included in employment
Leave this box blank.                                               income in the year of the overpayment.
                                                                ■   There was knowledge or collusion. The amount should
Box 22 – Income tax deducted                                        be included in employment income in the year of the
Enter the total income tax you deducted from the                    overpayment.
participant’s remuneration. This includes the federal,
provincial (except Quebec), and territorial taxes that apply.


                                                        www.cra.gc.ca                                                     25
Seasonal Agricultural Workers                                  Box 20 – RPP contributions
Program                                                        Leave this box blank. Registered pension plan (RPP)
                                                               contributions made with respect to tax-exempt employment
If you employ foreign workers under the Seasonal               income are not deductible by the employee.
Agricultural Workers Program, enter code 15 in box 29,
”Employment code,” of the T4 slips for your employees.         Box 24 – EI insurable earnings
For information, see Guide RC4004, Seasonal Agricultural       Enter the amount of insurable earnings on which you
Workers Program.                                               calculated the EI premiums.

Status Indians                                                 Box 26 – CPP/QPP pensionable earnings
The salary or wages you paid to a Status Indian may be         If you did not elect to provide CPP or QPP coverage to all
taxable, tax-exempt, or partly tax-exempt. Use                 your Status Indian employees on their tax-exempt
Form TD1-IN, Determination of Exemption of a Status Indian’s   employment income, leave this box blank.
Employment Income, to determine the type of exemption that     If you did elect to provide CPP/QPP coverage, enter the
applies to a Status Indian’s employment income. For more       amount of pensionable earnings on which you calculated
information, you can also refer to Chapter 7 of                the CPP/QPP contributions.
Guide T4001, Employers’ Guide – Payroll Deductions and
Remittances.                                                   Box 28 – Exempt (CPP/QPP, EI, and PPIP)
                                                               Do not complete the CPP/QPP part of this box if you
Taxable salary or wages                                        entered an amount in box 16, 17, or 26. Enter an “X” under
If you are an employer paying taxable salary or wages to a     CPP/QPP only if the earnings were exempt for the entire
Status Indian, you have to deduct CPP/QPP contributions,       period of employment.
EI premiums, and income tax, as well as PPIP premiums
(for workers in Quebec). Complete all boxes of the T4 slips    Box 44 – Union dues
in the usual way.                                              Leave this box blank. Union dues paid in respect of
                                                               tax-exempt employment income are not deductible by the
Tax-exempt salary or wages                                     Status Indian employee.
If you are an employer paying tax-exempt salary or wages
to a Status Indian, you do not have to deduct CPP/QPP          Box 52 – Pension adjustment
contributions; however, you have to deduct EI premiums,        Tax-exempt salary is included when determining the
and PPIP premiums (for workers in Quebec). For more            pension adjustment amount. See page 12 for details.
information, see Guide T4001, Employers’ Guide – Payroll
Deductions and Remittances.                                    Box 55 – Employee’s PPIP premiums
                                                               Tax-exempt salary or wages paid to a Status Indian in
How to complete the T4 slip                                    Quebec are insurable earnings subject to PPIP premiums.
Prepare the T4 slip in the following way when you pay a        Enter the PPIP premiums you deducted from employees
tax-exempt salary to a Status Indian.                          working in Quebec.

Box 14 – Employment Income                                     Box 56 – PPIP insurable earnings
Leave this box blank. Instead, in the “Other information”      For employees working in Quebec, enter the total amount
area, enter code 71 and the amount of the exempt salary or     used to calculate the employee’s PPIP premiums, up to a
wages paid in the year.                                        maximum of $62,500 for 2010.

Boxes 16 and 17 – Employee’s CPP/QPP contributions             Partly tax-exempt salary and wages
The employment of a Status Indian whose income is              How to complete the T4 slip
exempt from tax is excluded from pensionable earnings.         Prepare the T4 slip in the following way when you pay a
If you did not elect to provide CPP/QPP coverage to all        partly tax-exempt salary to a Status Indian.
your Status Indian employees on their tax-exempt
employment income, leave this box blank.                       Box 14 – Employment income
                                                               Enter the taxable salary or wages paid to the Status Indian
If you did elect to provide CPP/QPP coverage, enter the        employee in box 14. In the “Other information” area, enter
CPP/QPP contributions you deducted from the employee’s         code 71 and the amount of the tax-exempt salary or wages
earnings.                                                      paid in the year.

Box 18 – Employee’s EI premiums                                Boxes 16 and 17 – Employee’s CPP/QPP contributions
Tax-exempt salary or wages paid to a Status Indian are         If you did not elect to provide CPP/QPP coverage to all
insurable earnings subject to EI premiums. Enter the           your Status Indian employees on their tax-exempt
EI premiums you deducted.                                      employment income, enter the CPP/QPP contributions you
                                                               deducted from the employee’s taxable earnings.




26                                                    www.cra.gc.ca
If you did elect to provide CPP/QPP coverage, enter the       Box 26 – CPP/QPP pensionable earnings
CPP/QPP contributions you deducted from the employee’s        Enter the amount of pensionable earnings on which you
earnings.                                                     calculated the CPP/QPP contributions.

Box 18 – Employee’s EI premiums                               Box 44 – Union dues
Taxable and tax-exempt salary or wages paid to a Status       Annual union, professional, or like dues related to
Indian are insurable earnings subject to EI premiums. Enter   tax-exempt income are not deductible. Do not enter these
the EI premiums you deducted.                                 dues in box 44. If the employment income that relates to
                                                              union dues consists of both taxable and tax-exempt income,
Box 20 – RPP contributions                                    you have to prorate the union dues.
Registered pension plan (RPP) contributions that have been
made for tax-exempt income are not deductible. Do not         Box 52 – Pension adjustment
enter those contributions in box 20. If the employment        Taxable and tax-exempt salary is included when
income that relates to an RPP contribution consists of both   determining the pension adjustment amount. See page 12
taxable and tax-exempt income, you have to prorate the        for details.
RPP contribution.
You do not have to prorate the amount of pension              Box 55 – Employee’s PPIP premiums
adjustment (PA). Report the total amount in box 52,           Taxable and tax-exempt salary or wages paid to a Status
“Pension adjustment,” of the T4 slip.                         Indian in Quebec are insurable earnings subject to PPIP
                                                              premiums. Enter the PPIP premiums you deducted from
Box 24 – EI insurable earnings                                employees working in Quebec.
Enter the amount of insurable earnings on which you
calculated the EI premiums.                                   Box 56 – PPIP insurable earnings
                                                              For employees working in Quebec, enter the total amount
                                                              used to calculate the employee’s PPIP premiums, up to a
                                                              maximum of $62,500 for 2010.




                                                      www.cra.gc.ca                                                     27
 For more information
What if you need help?                                         Tax Centres
If you need more help after you read this guide, visit our     Jonquière Tax Centre
Web site at www.cra.gc.ca or call 1-800-959-5525. To get the   2251 René-Lévesque Boulevard
most up-to-date payroll information and products, go to        Jonquière QC G7S 5J1
www.cra.gc.ca/payroll.                                         Shawinigan-Sud Tax Centre
                                                               4695 – 12th Avenue
Forms and publications                                         Shawinigan-Sud QC G9N 7S6
To get forms and publications, go to www.cra.gc.ca/forms       St. John’s Tax Centre
or call us at 1-800-959-2221.                                  290 Empire Avenue
                                                               St. John’s NL A1B 3Z1
Electronic mailing lists                                       Sudbury Tax Centre
We can notify you immediately about new information on         1050 Notre Dame Avenue
payroll, electronic filing for businesses, and more. To        Sudbury ON P3A 5C1
subscribe, free of charge, go to www.cra.gc.ca/lists.
                                                               Summerside Tax Centre
                                                               275 Pope Road
Teletypewriter (TTY) users                                     Summerside PE C1N 6A2
TTY users can call 1-800-665-0354 for bilingual assistance     Surrey Tax Centre
during regular business hours.                                 9755 King George Boulevard
                                                               Surrey BC V3T 5E1
My Business Account                                            Winnipeg Tax Centre
My Business Account allows you to file a T4 information        66 Stapon Road
return over the Internet without a Web access code using       Winnipeg MB R3C 3M2
Internet File Transfer or T4 Web forms. You can also view
your account balance, transactions and remitting
requirements.
                                                               Publications for employers
                                                               ■   Employers’ Guide – Payroll Deductions and Remittances
Authorized employees and representatives can use the               (T4001)
“Represent a Client” service to access information and
online services on behalf of business owners. For more         ■   Employers’ Guide – Taxable Benefits and Allowances (T4130)
information about other online services for payroll
                                                               ■   Deducting Income Tax on Pension and Other Income, and
accounts, go to www.cra.gc.ca/mybusinessaccount.
                                                                   Filing the T4A Slip and Summary (RC4157)

My Payment                                                     ■   Fishers and Employment Insurance (T4005)

My Payment is a payment option that allows individuals
and businesses to make payments online, using the Canada
                                                               Our service complaint process
Revenue Agency’s Web site, from an account at a                If you are not satisfied with the service you have received,
participating Canadian financial institution. For more         contact the CRA office you have been dealing with. You
information, go to www.cra.gc.ca/mypayment.                    may choose to file a service complaint if the issue remains
                                                               unresolved. If you are still not satisfied with the way the
Addresses                                                      CRA has handled your complaint, contact the Taxpayer’s
                                                               Ombudsman. For more information, go to
Ottawa Technology Centre                                       www.cra.gc.ca/complaints or see Booklet RC4420,
Canada Revenue Agency                                          Information on CRA – Service Complaints.
875 Heron Road
Ottawa ON K1A 1G9                                              Your opinion counts
                                                               If you have any comments or suggestions that could help
Electronic Media Processing Unit                               us improve our publications, we would like to hear from
Ottawa Technology Centre                                       you. Please send your comments to:
Canada Revenue Agency
                                                                            Taxpayer Services Directorate
875 Heron Road
                                                                            Canada Revenue Agency
Ottawa ON K1A 1A2
                                                                            750 Heron Road
                                                                            Ottawa ON K1A 0L5




28                                                     www.cra.gc.ca

								
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