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T4 Details
Are you Ready for T4s and the implications and reporting for T4s?
Let's start with some basics. Many people think that once they get paid and taxes are deducted, they’ll receive their T4 forms from their employers sometime in February. After that, they either hand them off to their accountant (hopefully not someone like H&R Block) or handle their own taxes.
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But there’s more to T4 forms than meets the eye, and we’re here to help you understand the full picture.
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We’re providing a lot of detailed information below, and remember, we’re always available for a free consultation. If you need further assistance, don’t hesitate to reach out for support.
Let's dive in shall we:
Your first step is to start preparing those T4s.
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Within your payroll software or through your service provider, you should be able to access a year-to-date Payroll Register. This document summarizes all your amounts for the calendar year.
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The Payroll Register details total wages, income tax, CPP, EI, and other amounts paid throughout the year. Every payroll software or service provider will have a version of this form.
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Recommendation: Run these reports and review them carefully before the end of December. If any amendments or corrections are needed, it’s best to make those changes before the last pay date of the year (prior to December 31).
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Filing Method: It’s highly recommended to file your T4s electronically whenever possible, but note that the CRA still accepts paper copies as well.
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Penalties for Late or Incorrect T4s:
Filing late or with errors can lead to penalties imposed by the CRA. The penalties are calculated based on the number of slips, so the more employees you have, the higher the penalty for each day late or for inaccurate forms. It’s critical to file on time to avoid fines.
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CRA Mailing Information:
If you’re filing by mail, use the following addresses:
Jonquière TC
T4 Program
Post Office Box 1300 LCD Jonquière
Jonquière QC G7S 0L5
Courier address (delivery only):
Jonquière TC
T4 Program
2251 René-Lévesque Boulevard
Jonquière QC G7S 5J2
If you need more paper copies, you can order a maximum of T4 forms online or by calling 1-800-959-5525.
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Key Deadlines:
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January 15: Summaries and source remittances are due. Any payments owed must be made by this date.
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February 28: This is the final deadline to file and submit T4s to the CRA and to distribute them to employees without incurring penalties. However, if you owe taxes, those payments must still be made by January 15.
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Please check into the Additional Boxes year over year: See Required Additional Boxes for 2020 T4 Year Article
Need to Manually reconcile your T4s for Year end and Audit Continuity?
We have an Excel document available for T4 reconciliations for year-end purposes.
You must review your payroll register at year-end, ensuring that totals are processed correctly. It’s recommended that this review is signed off by someone other than the payroll remitter to ensure compliance and continuity.
Please click below here and download a copy for free.
This document is editable and includes pivot tables that you can add your benefits and other business by business items to ensure full review specific to your business.
2021 year PIER Rec.
Additional Details that are required to be considered for end of the year Tax docuements
​T4A Forms:
If you work with contractors or others who fall under self-employment, pension, or retirement income, T4As are necessary. These forms have separate requirements from regular T4s, and they must also be submitted by February 28.
Reporting Special COVID-19 Benefits:
If any of your employees received COVID-19 benefits (e.g., CERB, CEWS, CRHP), make sure to report them in the appropriate boxes on the T4. Misreporting these benefits can lead to audits or penalties, so ensure they’re categorized correctly.
RRSP Contributions & Other Deductions:
RRSP contributions, union dues, and other pre-tax deductions should be reported correctly. Make sure that your deductions and taxable benefits are aligned in the proper fields on the T4.
Multiple Jurisdictions:
If you have employees working in multiple provinces, such as Quebec, ensure their wages are broken down correctly for each jurisdiction. This is critical for correct remittance and tax filing.
Year-End Adjustments:
Ensure any year-end adjustments, such as bonuses, reimbursements, or taxable benefits, are accounted for before the last pay date of the year.
Online Payroll Access:
Ensure your employees have access to online payroll portals so they can easily access their T4 forms. Remind employees to update their contact information (such as addresses) to prevent delivery issues, ensure that employees have given you consent to send by email.
Record-Keeping Requirements:
Remember, as an employer, you are required to keep payroll records for at least six years. This includes T4s, payroll registers, and other critical documents that may be requested during an audit.
Payroll Reconciliations:
Perform detailed payroll reconciliations before the end of December. Ensure that all employee contributions are aligned with deductions and taxable benefits. This will minimize errors in your T4s and help prevent issues at tax time.
By covering these important areas and being proactive about your T4s, you will avoid common pitfalls, reduce the chance of penalties, and ensure smooth year-end processing.
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Feeling overwhelmed! We know what to do!!
If you need further assistance, don’t hesitate to reach out for support!
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