T4 (Annual Report)
T4 (Annual Report)
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A T4 annual payroll refers to the year-end summary Canadian employers prepare for each employee to report total earnings and payroll deductions for the calendar year. It shows employment income, CPP/QPP contributions, EI premiums, and income tax withheld, and employees use it to file their personal tax return.
What a T4 is
A T4 slip, officially called the Statement of Remuneration Paid, identifies the remuneration an employer paid to an employee during the year. It is one of the most important payroll documents because it summarizes the employee’s annual pay and deductions in one place.
What it includes
A T4 usually reports gross employment income, taxable benefits, income tax deducted, CPP or QPP contributions, and EI premiums. Depending on the employee’s situation, it may also include pension contributions, union dues, or other taxable amounts.
Why it matters
For employees, the T4 is needed to complete the annual tax return and confirm that income and deductions were reported correctly. For employers, it is a legal payroll filing that helps reconcile year-end payroll totals with amounts already remitted to the CRA.
Filing timing
Employers must prepare T4 slips after the end of the calendar year and provide them to employees and the CRA by the end of February in most cases. Year-end payroll work usually includes reconciling totals, generating slips, and filing the T4 Summary.