With tax season right around the corner, employers are working quickly and efficiently to get all of their employee T4, T4A and RL-1 slips out. Through the year employers are required to withhold, repot and remit the statutory deductions taken from the employees pay. The amounts paid to the employee, and the statutory deductions withheld must be sent to the federal government. In addition to federal withholdings, remitting, and reporting requirements, Quebec employers must also report and remit Quebec statutory deductions withheld during the tax year.
What is a T4 and RL-1 slip and when should it be completed?
A T4 is T4 – Statement of Remuneration, and RL-1 is Releve 1 – Various Employment Remuneration and Income. These are given to employees so the know how much employment income they have been paid, and the amount of income tax and other statutory deductions have been deducted during the current tax year. The T4 slip is equivalent to the W2 that is issued in the United States.
A T4 and RL-1 slip must be completed if you have paid any of the following:
- Salary, wages, tips or gratuities, bonus, vacation pay, employment commission etc.
- Taxable benefits or allowances
- Retiring allowance
- Deductions withheld during the year
- Pension adjustments
- Deducted CPP/QPP contributions, EI premiums, QPIP premiums, or income tax
- Remuneration was more than $500
You have to report any income that was PAID to the employee in that year.
What is the deadline for Issuing T4 and RL-1 Slips?
T4 and RL-1 Slips must be filed and issued by the last day of February of the year following the taxation year being reported.
Please note some General Guidelines when completing the T4 Slips:
- Make sure the Social Insurance Number (SIN) entered is correct
- Employees who worked in multiple provinces should receive a T4 for every province they were employed
- All amounts are reported in Canadian Dollars
- No negative amounts can be reported on the T4
- Do not print dollar signs ($), hyphens or dashes.
Please note some General Guideline when completing the RL-1 Slip
- RL-1 slips are to be filed with the Summary form in alphabetical order by surname.
- All amounts are to be reported in Canadian dollars, however if any amount cannot be expressed in Canadian currency, you must indicate the international abbreviation for the currency in questions in the middle of the form.
- Where there is no amount to report, leave it blank except Box G, Box I. These must always be populated even with 0.00
- No negative amounts are to be reported on the RL-1
Ashley Unger / Payroll Specialist / PEO Canada