What is a T4 – Those of you who are unaware of what a T4 slip is and when T4s will be available in 2024? and other relevant details regarding T4s in Canada should stick to this article and scroll down.
T4 Canada: What is a T4?
A T4 slip is a statement slip of the remuneration, which includes all wages and deductions paid within the previous taxation term commencing from Jan. 1 to Dec. 31. From February 6, 2024, employees can forge the T4 slip from the Tax Forms section of their payroll accounts. Employees have access to them by February 28, every year, after that date.
For the preceding calendar year, any employee earning $500 or more in remuneration must obtain a T4 slip from their employer. The employer is responsible for issuing this slip to current and former employees.
If you have changed employment in the same year or had more than one appointment in the same year, you may receive more than one tax slip in the same tax year.
When Does T4 Come Out in 2024?
The employer must file or distribute T4 slips to employees every year before the end of the second month.
The following are important dates to keep in mind:
| Important Dates | Events |
| February 6, 2024 | T4 slips for the previous taxation year are available to generate in Wave |
| February 29, 2024 | Deadline date to file T4 slips with Canada Reserve Agency |
| February 29, 2024 | Deadline date to distribute the slip to employees |
When is it Required to Issue T4 Slips?
In the event you meet any of the following conditions and you are an employer (resident or nonresident), and you paid your employees’ employment remuneration, commissions, subsidies, or benefits, you must present a T4 slip:
- Your employee’s wages were deducted for CPP/QPP, EI, PPIP, or income tax.
- The exception does not apply if the reimbursement paid to your employee is not on the exemption list and the total compensation paid throughout the calendar year exceeds $500 (according to the CRA administrative regulation).
If you provide current or former employees with taxable group term life insurance coverage, even if the amount of all paychecks paid in the calendar year is $500 or less, a T4 slip must be submitted.
How to generate and Download T4s?
The following steps must be taken to accomplish the task:
- Click Tax Forms under the payroll section.
- When your T4 slips are ready, click Generate under Actions.
- You can review the employer summary on the follow-up page.
- If you missed any details, you will see a notification to “Fix Missing”. Fill in the details you missed.
- Finally, click the “Generate T4s” button.
Please note that you must have an active or limited access payroll subscription to generate T4 slips in Wave. If your payroll subscription is lapsed, proceed to the Business Settings option and then tap Billing.
The T4 slips are available in employee Wave accounts as soon as they are generated by the employees.
How to file T4?
After you have created your T4 lips and summary in Wave, the next page will contain a short to-do list. Things you must do are:
- You can download T4s to distribute to your employees.
- Download the XML file for internet file transfer to upload the file to the Canada Reserve Agency website.
You should be aware that Wave does not file T4 slips with the CRA, they generate them instead.
What to do to Correct T4 Slips?
CRA requires you to generate the form again if you commit an error unknowingly before filing and later discover it before filing: click “Discard current form and start over” and follow the steps below:
- In the Payroll section, click Employees.
- Select an employee from the list.
- Then click Personal information.
CRA’s My Account allows you to access your T4 slip information if you need more information.
