When an employee stops working for you because of layoff, retirement, resignation, or dismissal, we suggest that you calculate the employee's earnings for the year to date and give the employee a T4 slip. Include the information from that T4 slip in your T4 return when you file it on or before the last day of February of the following year.

You must also issue a Record of Employment (ROE).

You may want to consult the List of Provincial and Territorial Ministries of Labour of your employee's province of employment to make sure you have met their requirements. If you are a federally-regulated employer, consult the federal labour standards.

If you pay your employee a retiring allowance, see Retiring allowances to find out how those payments are treated. Retiring allowances must be reported on a T4 slip.

Forms and publications

• Guide T4001, Employers' Guide – Payroll Deductions and Remittances
• Guide RC4120, Employers' Guide – Filing the T4 Slip and Summary

Related topics

• How to Complete the Record of Employment