Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence. - Helen Keller https://t.co/IpkUddabFJ
T4 Slips: Information for employersin Tax Planning and Tax Preparation
The start of the new year marks the start of the preparations for the tax season. And as business owners and employers, it is important to at least know the basics of what types of income should be included in the T4 slips and when to file them.
Types of income you should report on T4 slips:
- Salary, wages, tips or gratuities, bonuses, vacation pay, employment commissions, gross and insurable earnings of self-employed fishers and all other remuneration you paid to employees during the year;
- Taxable benefits or allowances;
- Retiring allowances;
- Deduction you withheld during the year; and
- Pension adjustment amounts for employees who accrued a benefit for the year under your registered pension plan or deferred profit sharing plan.
Remember, you have to report income on a T4 slip for the year during which it was paid, regardless of when the services were performed. For example, if you paid your employee in January 2018 for income they earned in December 2017, you will have to report that income on their T4 slip for 2018.
When to file: File your T4 and T4A information returns by the last day of February of each year.
Also, provide your employee with 2 copies of the T4. You can either mail it to their last known address, deliver in person or email (if you have consent in writing).
Source: https://www.taxtips.ca/smallbusiness/t4slips.htm, https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/important-dates-businesses/returns.html, https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4-information-employers/t4-slip/what-report-what-report-on-t4-slips.html