T4 slip
Also written as t4.
Definition
The slip issued by an employer showing annual employment income and source deductions for a calendar year. Filed by February 28 of the following year.
Long reference
Handbook
T4 Slips
Citations, procedures, and worked examples for t4 slip.
Related terms
CPP
Canada Pension Plan contributions. Deducted from salary and matched by the employer. A corporation owner pays both halves on any salary to themselves.
EI
Employment Insurance premiums. Generally does not apply to a 1-person corporation owner because they control the corporation. Available voluntarily for certain benefits.
Salary vs dividends
The choice every 1-person corp owner makes: pay yourself via a T4 salary (creates RRSP room, CPP) or non-eligible dividend (no payroll admin, no CPP).