Employer Information

• Employer's Name: Ensure the company name matches the Incorporation Name or the name registered with the Payroll Number.

• CRA Payroll Number: Include the Employer’s CRA Payroll Number.

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Employee Information

• Employee's Name and Address: Spell the name correctly and use the last known address provided by the employee.

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Calendar Year

• This refers to the period from January to December of the year prior to when the employee receives the T4.​

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Box 10

• Province: Enter the province abbreviation (e.g., Alberta = AB, British Columbia = BC).

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Box 12

• SIN: Enter the Social Insurance Number provided by the employee.

  • If the employee has a temporary SIN that may have been replaced by a permanent one, check with them for necessary updates. Have them sign an updated TD1 form if changes are made.

  • If you do not have a SIN, enter all zeros (not ideal, but a workaround).

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Box 14

• Total Income: This box includes all income paid to the employee, such as wages, bonuses, commissions, vacation pay, and allowances. If paid to the employee, it should be included here.

  • Note: Expense reimbursements (e.g., receipts for office supplies) do not need to be included.

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Boxes 16/17 (CPP)

• CPP Total: Enter the employee's CPP contribution only. Each year, the maximum changes and requires to be amended when processing. 

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Boxes 16a/17a (CPP2)---- > Additional Box for Maximum to be determined* will logically follow Box 24/26 

• CPP Total: Enter the employee's CPP2 contribution only. Each year, the maximum changes and requires to be amended when processing, this is new to only the 2024 year. 

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Box 18 (EI)

• EI Total: Enter the employee's EI contribution only. Each year, the maximum changes and requires to be amended when processing. 

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Box 20

• Registered Pension Plan Contributions: Report only the employee's contributions. This box does not include employer contributions.

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Box 22

• Tax Deductions: This is the total amount deducted from employee wages for federal and provincial taxes, calculated based on the TD1 form filled out by the employee.

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Box 24

• EI Maximum: This reflects the maximum EI contribution. If the employee had no EI, this should be $0.

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Box 26

• CPP Maximum: This reflects the maximum CPP contribution. Often, this will be the same as Box 16/17 if the maximums were reached.

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Box 44

• Union Dues: Report only the portion deducted by the employer, based on the collective agreement.

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Box 46

• Charitable Donations: Report any deductions for charitable donations here.

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Box 50

• Pension Plan Registration Number: Enter the 7-digit registration number for the Registered Pension Plan or Deferred Profit Sharing Plan.

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Box 52

• Pension Adjustments: Report the total pension credits for the year. If the employee worked in multiple provinces, report proportionally across T4s. Leave blank if there are no adjustments.

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Let's talk about other boxes

Have you ever wondered what all those boxes on the T4 form mean? As an employee, you might be missing out on potential tax deductions if you don’t check these boxes. As an employer, you may not realize that you need to include specific information there.

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If you're using accounting software or services like Ceridian or Payweb, every time you create an allowance, taxable benefit, or deduction, it gets assigned a code that ultimately appears on the T4 form.

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Remember that Box 14 includes total taxable income, but many of these other boxes are where additional breakdowns occur. The boxes are not prenumbered, which means it’s your responsibility as the employer to inform your accounting software or service about how you categorize these entries.

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If you haven't recorded this information with each paycheck throughout the year, you'll need to make those adjustments before filing the T4s. This may require using alternative software or services to ensure the T4s are accurate.

Additionally, if you have more than six codes to report, you'll need to issue a second T4. This second T4 will only list names and this summary section.

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Common Boxes for Northern Clients

• Box 30: Board and Lodging

• Box 31: Special Work Sites

• Box 32: Travel in a Prescribed Zone

• Box 33: Medical Travel Assistance

• Box 34: Personal Use of an Employer's Vehicle

• Box 36: Interest free and low interest loans

• Box 38: Security Options Benefits

• Box 39: Security Options Deductions

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Box 40 (Other Taxable Benefits)

Box 40 is often referred to as the "everything box" in the industry. This is where all other taxable benefits and allowances are reported, and it’s essential for employers to pay special attention to this box. In many cases, a T2200 form is needed alongside the T4 to clarify the entries in Box 40, enabling employees to claim additional deductions and verify their income.

See T2200 Details for more

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Key Points:

• Benefits and Allowances: All benefits and allowances must be listed in this box.

• Tax Implications: Both Canada Pension Plan (CPP) and Employment Insurance (EI) contributions apply to these amounts.

• Processing Requirements: The total from Box 40 must be included in Box 14.

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Common Examples:

If you provide any of the following, it should be included in Box 40:

• Vehicle Allowance: Any payments made for vehicle use, including per-kilometer rates.

• Professional Allowance: Any allowances given for professional expenses.

• Parking: Any parking allowances provided to employees.

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Important Questions to Consider:

Do you offer your employees any benefits, allowances, or expense reimbursements? If yes, those amounts belong in Box 40.

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Responsibilities of Employers:

• Determine Taxability: Assess whether the benefit or allowance is taxable.

• Calculate Amounts: Ensure accurate calculations for reporting.

• Process Correctly: These amounts should typically be processed through payroll.

• Include in Box 14: Ensure that the total is reflected in Box 14.

• Confirm Required Forms: Check if a T2200 or other documentation is necessary.

  • Need information on filling out a T2200 see here. ​

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For a detailed list of what constitutes a taxable benefit and to understand tax implications, please refer to the in-depth resource provided.

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Questions?

If you have questions or need clarification, please contact us. Many businesses are non-compliant with T4 requirements, which can lead to issues.

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