T4 Slips

Definition

The T4 Statement of Remuneration Paid is the annual information slip that reports each employee's gross earnings, taxable benefits, and payroll source deductions for a calendar year. The employer files one T4 slip per employee plus a T4 Summary that reconciles the total of all slips with the amounts already remitted on the RP account. T4s power the employee's T1 return and let CRA match employer remittances to employee income.

Key rules

• T4 slips and the T4 Summary are due to CRA and to each employee no later than the last day of February following the calendar year (Regulations s.205). If February has 29 days (2028), the deadline is February 29; in 2027, the deadline for 2026 T4s is March 1, 2027 (because February 28 is a Sunday), confirmed annually by CRA.
• Employers that file more than five information returns of a given type must file electronically, per ITA s.162(7.02). The Web Forms and XML filing channels are free through My Business Account.
• Late-filing penalties under ITA s.162(7.01) are $25 per day per slip, with a minimum of $100 and a maximum of $2,500 per slip type, scaled by the number of slips (from 1 to 10,000).
• Key boxes to get right: Box 14 (employment income), Box 16 (employee CPP), Box 17 (QPP if Quebec), Box 18 (employee EI), Box 22 (income tax deducted), Box 24 (EI insurable earnings), Box 26 (CPP pensionable earnings), Box 28 (CPP/EI/PPIP exempt indicators), Box 40 (other taxable benefits), Box 44 (union dues), Box 52 (pension adjustment).
• A negative or zero T4 (for example, only taxable benefits) still has to be filed.
• An amended T4 is filed by resubmitting the slip with "Amended" selected. The T4 Summary is also re-filed and CRA will reconcile.

Example

A BC corporation paid its sole employee $85,000 in 2026 and provided a $2,400 employer-paid group life insurance benefit. EI did not apply because the employee is the sole shareholder (40% control exemption).

1. Gross Box 14 = $85,000 + $2,400 taxable benefit = $87,400.
2. Box 40 = $2,400 (taxable benefit).
3. Box 16 CPP and the CPP2 amount are computed on $85,000 salary plus the $2,400 benefit that is CPP-pensionable.
4. Box 18 EI = $0, Box 24 = $0, Box 28 marked "X" for EI exempt.
5. Box 22 reflects actual federal and BC tax withheld.
6. The T4 Summary aggregates this slip and any others, with total remittances matching the sum of PD7A payments. Any difference creates a balance owing or a refund.

Common mistakes

• Forgetting to include non-cash taxable benefits in Box 14. CRA's PIER review catches this, reassesses CPP and EI, and charges arrears interest.
• Missing the Box 28 exemption codes for controlling shareholders. Without the code, CRA expects EI premiums and issues a PIER.
• Issuing slips but never filing the T4 Summary with CRA.
• Paper filing more than five slips, triggering the Regulation 205.1 penalty for failing to file electronically.
• Missing the deadline. The $25/day per slip penalty stacks quickly on a corporation with even 10 employees.

Related concepts

The T4 is the year-end reconciliation of CPP, EI, and income tax withheld through the RP account. Taxable benefits totalled on the slip are cross-referenced in taxable employee benefits.