T4 Slips

Definition

The T4 reports employment income, taxable benefits and deductions for a calendar year. Reconcile the slips and summary with payroll records and the RP account. CRA's T4 filing guide specifies when a slip is required, how each field works and how to correct a filed return.

When and how to file

The normal deadline to file with CRA and provide employees their slips is the last day of February following the year. CRA's weekend and public-holiday rule applies: 2025 T4s were due March 2, 2026, and 2026 T4s are normally due March 1, 2027. The summary goes to CRA, not to each employee.

Generally prepare a slip when remuneration exceeds $500 or deductions were required, with specific exceptions such as taxable group term life insurance even below that amount. Do not create a negative or zero slip indiscriminately. More than five slips of a return type generally requires electronic filing. Filing slips with CRA and distributing employee copies are separate duties.

Late-filing penalties

CRA's published administrative policy varies by the number of late slips of that type. It is not $25 per day for every employee.

The daily amounts run for at most 100 days. Failure to file electronically when required has a separate penalty. Check the current guide rather than treating this table as every possible payroll penalty.

Important boxes

Report employment income in Box 14 and the relevant benefit code in Other information. Employee CPP goes in Box 16, CPP2 in Box 16A; Quebec uses Boxes 17 and 17A for QPP. EI deducted goes in Box 18 and income tax in Box 22. Boxes 24 and 26 report insurable and pensionable earnings under their own rules. Employer contributions do not go in the employee contribution boxes.

A blanket assumption that every non-cash benefit attracts EI is wrong. Determine the actual benefit's treatment and complete Box 28 exemption indicators where required. CRA taxable-benefit guidance

Example

A BC corporation pays its sole shareholder-employee $85,000 salary in 2026 plus a $2,400 taxable group term life insurance benefit. Assume twelve months of CPP eligibility, no election to stop and more than 40% voting control.

• Box 14: $87,400; code 40: $2,400 for the group-life benefit.
• Employee CPP: $4,230.45 in Box 16 and $416 in Box 16A, the 2026 full-year maximums under these assumptions.
• No EI is deducted for the non-insurable controlling-shareholder employment. Leave Box 18 blank, enter zero insurable earnings in Box 24 and mark the EI exemption in Box 28 as instructed by CRA.
• Report actual income tax withheld in Box 22 and pensionable earnings under the Box 26 instructions.

Correcting a return

Amend the affected slip using the proper amendment indicator and retain its unchanged information. Do not file an amended T4 Summary. Give the employee amended copies and follow CRA's payment or refund process separately. An amended slip does not itself send a payroll remittance.

Related concepts

• CPP Contributions
• EI Premiums
• Income Tax Withholding
• Payroll Account (RP)
• Taxable Employee Benefits