Officially known as the "T4 Statement of Remuneration Paid Form,” T4 is mandatory for filing your taxes. The employer is the supplier of the T4 slips. The following article will explore everything regarding T4 such as what it is, how you get it and why is it so important for a Canadian Employee? You will find a simple guide to the T4 form.
What is meant by a T4 slip?
An information slip that summarizes how much money your employees earned over the past year. It is also used to file income tax every year. A person having multiple jobs will receive multiple T4 slips, one from each employer.
Register your business in Canada todayGET STARTED
Why is a T4 slip so important?
A T4 slip is required for the following reasons:
- A T4 slip is needed in every province where the employee earn their income.
- If employees have been paid more than $500.
- If the employees are inactive or terminated.
- T4 slip is used to show what you have been paid before deductions.
What Information does a T4 slip contain?
An employer's T4 slip includes Information about taxable income, benefits, allowances, deductions and pension plan contributions. The T4 slip contains small boxes, one for each heading. Each box has a specific number for an elaborative view. Some of these boxes are as follows:
Four types of T4 Filing
1. Web Form Method
This method is of great significance as it is free and secure. You need an internet connection to file the information return. Once you submit the Information, you will receive a confirmation number representing the acceptance information.
2. Electronic Method
You can use the electronic method for filing your information slips for a calendar year. Like the web form method, you need an internet connection to proceed with the process.
3. Internet File Transfer (XML)
You can send a maximum of 150 MB file size through a web browser. Your software will then automatically print, create and save all the electronic returns in XML format. However, the file size should not proceed to 150 MB.
4. Filing on Paper
Through the paper method, you can file up to 50 T4 slips. After that, you can use the internet file transfer or web forms online. If you need more slips, you can order a maximum of 9 single-page slips by calling 1-800-959-5525.
How to fill your T4 slips?
You need to complete your T4 slips in following steps:
GET NOTIFIED WHEN NEW ARTICLES ARRIVE
- All amounts should be added in dollars and cents
- Fill in the T4 slips in a clear way
- Fill in the form in alphabetical order
- All amounts need to be added in Canadian dollars
- Don’t use negative amounts
- Avoid changing the box headings
- Avoid use of hyphens/dashes between the numbers
Let’s Wrap it Up!
A T4 slip is a great and easy way to file your tax returns. It would help if you kept in your mind that the tax rules may vary over time and location. So you must keep yourself updated with the latest Information about tax rules and regulations. Yogi & Associates is a great tax adviser firm to advise you accurately about the T4. You can contact us anytime to seek help.