Understanding tax forms can be a bit overwhelming, especially if you’re not familiar with them. One of the important tax forms in Canada is the T4 slip. This guide will help you understand what a T4 slip is, when you can expect to receive it in 2024, and how to manage it if there are any issues. Let’s break down everything you need to know about T4 slip in simple terms.
What is a T4?
A T4 slip is a tax document that shows how much money you earned and how much tax was deducted from your wages in a year. This slip covers the period from January 1 to December 31. For the year 2024, you can generate your T4 slip from February 6, 2024, and your employer must give it to you by February 28, 2024.
Key Points About T4 Slips:
- Purpose: Shows your total earnings and deductions for the year.
- Who Gets One: Employees who earn $500 or more in a year from their employer.
- Multiple Slips: You might receive more than one T4 if you had multiple jobs or changes in employment during the year.
When Does T4 Come Out in 2024?
T4 slips for 2024 will follow these important dates:
| Important Dates | Events |
|---|---|
| February 6, 2024 | T4 slips available to generate in Wave |
| February 29, 2024 | Deadline to file T4 slips with CRA |
| February 29, 2024 | Deadline to distribute T4 slips to employees |
When is it Required to Issue T4 Slips?
As an employer, you must issue a T4 slip if:
- You deducted amounts for CPP/QPP, EI, PPIP, or income tax from your employees’ wages.
- You paid more than $500 in total compensation to an employee during the year, except for exempt payments.
Exception: If you paid less than $500 but provided taxable group term life insurance, you must still issue a T4 slip.
How to Generate and Download T4s
To create and download T4 slips, follow these steps:
- Log In: Access your payroll section.
- Generate T4s:
- Click on “Tax Forms.”
- Select “Generate” under Actions if your T4 slips are ready.
- Review the employer summary.
- Fix any missing details if prompted.
- Click “Generate T4s.”
Note: Ensure you have an active payroll subscription to use Wave for generating T4 slips.
How to File T4
After generating your T4 slips:
- Download T4s: Save the slips to distribute to your employees.
- Upload File: Download the XML file for internet filing and upload it to the Canada Revenue Agency (CRA) website.
Note: Wave helps you generate T4 slips but does not file them directly with CRA.
What to Do to Correct T4 Slips
If you notice an error before filing with CRA:
- Start Over: Click “Discard current form and start over.”
- Generate New Form: Follow the steps to generate the corrected T4 slip.
For more details, check your My Account with CRA.
Conclusion
A T4 slip is essential for reporting your earnings and deductions. Knowing when and how to generate, file, and correct your T4 slips ensures that you stay on top of your tax responsibilities. Make sure to keep track of important dates and handle any errors promptly to avoid issues with your tax filings.
FAQ’s
What is a T4 slip?
A T4 slip is a tax document showing your earnings and deductions for a calendar year, from January 1 to December 31.
When will T4 slips be available for 2024?
T4 slips for 2024 will be available to generate from February 6, 2024, and must be distributed to employees by February 28, 2024.
Do I need to issue a T4 slip if I paid less than $500?
Yes, if you provided taxable group term life insurance, you must issue a T4 slip, even if the total payment was less than $500.
How do I correct an error on a T4 slip?
If you spot an error before filing, discard the current form, correct the details, and generate a new T4 slip.
How can I file my T4 slips with CRA?
Download the T4 slips and the XML file for internet filing, then upload the file to the Canada Revenue Agency (CRA) website.
