T4 in Canada.
Each T4 commonly refers to a statement of earnings in Canada. A T4 slip is a tax form used to report employment income. T4 covers the income in the calendar year from the 1st of January to the end of December for each year
A sample T4 in Canada for 2023
Here are more details of the boxes of a T4 in Canada:
- Box 10 – Employment Income:
- This box shows the total employment income earned by the employee during the tax year. It includes regular salary, wages, overtime pay, bonuses, and any other taxable benefits.
- This box shows the total employment income earned by the employee during the tax year. It includes regular salary, wages, overtime pay, bonuses, and any other taxable benefits.
- Box 22 – Income Tax Deducted:
- This box displays the total amount of income tax that was withheld from the employee’s pay throughout the year. Employers are required to deduct income tax at source based on the employee’s declared tax exemptions and the tax brackets. This box reports the total income tax the employer deducted from the employee or worker’s income. This includes the federal, provincial (except Quebec), and territorial taxes that apply.
- This box displays the total amount of income tax that was withheld from the employee’s pay throughout the year. Employers are required to deduct income tax at source based on the employee’s declared tax exemptions and the tax brackets. This box reports the total income tax the employer deducted from the employee or worker’s income. This includes the federal, provincial (except Quebec), and territorial taxes that apply.
- Box 16 – CPP Contributions:
- Canada Pension Plan (CPP) contribution made by the employee is reported in this box. CPP is a mandatory pension program that provides contributors with a retirement pension and other benefits. This box reports the amount of CPP contributions the employer deducted from an employee or worker.
- Canada Pension Plan (CPP) contribution made by the employee is reported in this box. CPP is a mandatory pension program that provides contributors with a retirement pension and other benefits. This box reports the amount of CPP contributions the employer deducted from an employee or worker.
- Box 18 – EI Premiums:
- Employment Insurance (EI) premiums are contributions made by the employee to fund employment insurance benefits. This box shows the total EI premiums deducted throughout the year. This box reports the amount of EI premiums the employer deducted from an employee or worker.
- Employment Insurance (EI) premiums are contributions made by the employee to fund employment insurance benefits. This box shows the total EI premiums deducted throughout the year. This box reports the amount of EI premiums the employer deducted from an employee or worker.
- Box 20 – RPP Contributions:
- Normally, if the employee participates in a registered pension plan (RPP) and makes contributions, those contributions are reported in this box.
- Normally, if the employee participates in a registered pension plan (RPP) and makes contributions, those contributions are reported in this box.
- Box 40 – Other Information:
- This box may include other taxable benefits or allowances that don’t fit into the other specified boxes. It could include things like certain types of travel benefits, parking benefits, or other employment-related income.
- This box may include other taxable benefits or allowances that don’t fit into the other specified boxes. It could include things like certain types of travel benefits, parking benefits, or other employment-related income.
- Box 40 – Other Information:
- This box may include other taxable benefits or allowances that don’t fit into the other specified boxes. It could include things like certain types of travel benefits, parking benefits, or other employment-related income.
- This box may include other taxable benefits or allowances that don’t fit into the other specified boxes. It could include things like certain types of travel benefits, parking benefits, or other employment-related income.
- Box 44 (Union Dues):
- This box represents the Union Dues deducted by the employer during the tax year. This box shows the total amount of union dues that were withheld from an employee’s pay and remitted to the respective union. This is part of the employment income but is deducted and paid to the unions.
- This box represents the Union Dues deducted by the employer during the tax year. This box shows the total amount of union dues that were withheld from an employee’s pay and remitted to the respective union. This is part of the employment income but is deducted and paid to the unions.
- Other Boxes:
- Depending on the individual’s situation, there might be additional boxes for items such as union dues (Box 44), charitable donations (Box 46), or other deductions.
Employees use the information from their T4 forms to complete their income tax returns. They report their total income, claim eligible deductions, and calculate the final amount of income tax owed or any refund due. Employees need to review their T4 forms for accuracy and keep them for tax filing purposes. Employers are required to provide T4 forms to their employees by the end of February of next year.
So, for example, your 2023 T4 is supposed to be ready and sent to you and the CRA by the end of February 2024.
New for 2023 and 2024 about T4 in Canada:
Box 16A) For T4 summaries filed for the calendar year 2024 and after, add the amounts in box 16A of all T4 slips. Report the total on line 16A. The CRA will provide more instructions by the end of 2023.
Beginning January 1, 2024, you must deduct the second additional CPP contribution (CPP2) on earnings above the annual maximum pensionable earnings using the following rates and maximums.
Learn more: What is the CPP enhancement?
If you want to know more about T5, you can check out this post about T5 in Canada.
If you want to know more about T4A, you can check out this post about T4A in Canada.
