What is T4 Slip (Statement of Remuneration Paid)?

The T4 slip is the Canadian equivalent of the US W-2: it reconciles the year's payroll to each employee's individual tax return and to CRA's records. Filing T4s accurately and on time is a critical payroll compliance obligation.

**Filing requirements**

Employers must file a T4 slip for each employee to whom they paid employment income in the calendar year, including salaries, wages, commissions, tips, taxable benefits, and most other remuneration. The T4 Summary (a summary of all T4 slips) accompanies the individual slips. Employers who file 5 or more T4 slips must file electronically. Electronic filing is done through CRA's My Business Account using Internet Filing or XML upload.

**Key boxes on the T4**

Box 14 (Employment income): total gross employment income including all taxable benefits. Box 16 (Employee CPP contributions): CPP1 contributions deducted. Box 16A (Employee CPP2 contributions): CPP2 contributions if applicable. Box 17 (Employee QPP contributions): for Quebec employees. Box 18 (Employee EI premiums): EI deducted. Box 22 (Income tax deducted): total federal and provincial income tax withheld. Box 40 (Other taxable allowances and benefits): taxable benefits not included in Box 14. There are over 40 boxes in total, covering reporting for various taxable allowances, stock options, and special situations.

**Taxable benefits**

Many employer-provided benefits are taxable and must be included in the employee's T4 employment income: personal use of a company vehicle, group life insurance premiums paid by employer, employer-paid tuition for personal interest courses, and gifts and awards over CAD 500 per year. The benefit amount must be calculated and included in Box 14. Some benefits are non-taxable (such as employer contributions to registered pension plans, certain group health insurance premiums, and employer-provided discounts up to certain limits).

**Deadlines and penalties**

T4 slips must be distributed to employees and filed with CRA by the last day of February following the calendar year (so by 28 February 2026 for the 2025 tax year). CRA charges a penalty for late filing of CAD 25 per day for each day the return is late, to a maximum of CAD 2,500. For employers with 50 or more T4s who fail to file electronically, there is an additional penalty of CAD 250.

**Quebec RL-1 slip**

For employees in Quebec, employers must also file the provincial RL-1 slip (Revenu Quebec equivalent of the T4) in addition to the federal T4. The RL-1 is filed with Revenu Quebec and covers Quebec income tax, QPP, and QPIP contributions.