Comprehending every information on each tax slip is not essential when submitting your CRA tax return. However, knowing your CRA tax papers might help you better comprehend the amount of taxes withheld and possibly how to lower your final tax liability. Your CRA tax return includes a T4 slip. However, what is a T4 slip and how does it relate to comprehension of Canadian tax payment procedures?
What is a T4 slip?
All of the compensation that a company paid an employee throughout a calendar year is listed on a T4 slip. Form T4 slips are available in fillable and saveable PDF or PDF formats for paper filing.
What information does the T4 slip contain?
Employers are required by the Canada Revenue Agency (CRA) to provide T4 slips, often known as T4 statements. Both the business and the employee benefit from precise income and tax reporting. The T4 slip is essential for employees to file their tax returns.
A T4 slip contains a number of important details, such as:
- The total amount of employment income (wages, salaries, bonuses, etc.) that the employee received throughout the course of the calendar year is shown in Box 14.
- The entire CPP contributions made by the employee to the Canada Pension Plan are displayed in Box 16.
- The total amount of income tax withheld from the employee’s paycheck is shown in Box 22—Income tax deducted.
- Employee earnings that qualify for employment insurance (EI) premiums are displayed in Box 24—EI insurable earnings.
- Any pension changes that might have an impact on an employee’s capacity to make contributions to an RRSP are reported in Box 52, Pension Adjustment.
How do I get my T4?
Usually, your employer provides you with your T4. Your employer has until the end of February to deliver your T4 slip in person, via mail, or online. Employers are increasingly providing their staff with digital soft copies of their T4s. You may be able to use your employee login to access your T4 slip via your company portal. To find out how to access your T4, pay attention to any updates at work or in your emails.
As soon as your employer files your T4 slips with the CRA, which should typically happen in mid-March, you can view your account online if you have a CRA My Account. T4 slips from prior years are also available on your account.
