Preparing for year end – tax slips

With year end fast approaching, businesses have to make sure that they are well prepared for the upcoming tax season. It is important to make sure that your payroll account is all in order to issue the T4 and RL-1 slips to employees and contractors before the deadline.

The good news is that your PaymentEvolution Payroll account will automatically generate the required T4, T4A and RL-1 slips for your staff. It’ll even create the required company summaries for filing with the Canada Revenue Agency and Revenu Québec. Even if you haven’t run payroll with PaymentEvolution yet, there’s still time to carryover your year-to-date information to create these tax slips.

What are T4 Tax Slips?

A Canadian T4 tax slip, or Statement of Remuneration Paid, is prepared and issued by an employer to advise employees how much employment income they were paid during a tax year and the amount of income tax that was deducted. Québec employees will receive a RL-1, Employment and Other Income Slip, as well a T4 tax slip.

Who in your company should be given a T4 slip?

T4 slips should be issued for each employee who received remuneration with respect to employment where:

  • Deductions for Canada/Quebec Pension Plan contributions, Employment Insurance, Quebec Parental Insurance Plan premiums and/or income tax were required.
  • The remuneration was $500.00 or more
  • Any amount of group term life insurance was provided.

Employment income includes salary, bonuses, vacation pay, controlled tips, commissions, payroll deductions, taxable allowances, the value of taxable benefits and payment in lieu of notice.

What is the Deadline for issuing T4 slips?

T4 tax slips must be completed and issued by the last day of February the year after the calendar year to which the T4 tax slips apply. For payments you made in 2014, the deadline is March 2, 2015 (Feb 28, the typical deadline, falls on a Saturday) .

Note that employees who work in more than one province during the year must have a separate T4 slip for the earnings and payroll deductions for each province in which they were employed. For example, an employee who worked in both Alberta and Ontario will need a separate T4 for the remuneration paid in each province.

As well, an employee must receive a separate T4 from each employer they worked for in a calendar year. For more information regarding T4 slips or to view a sample visit the Canada Revenue Agency website.

How to start your year-end and T4 process

Follow our handy guide on how to complete your year-end and generate your T4, T4A and RL-1 slips.

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