T4 – Statement of Remuneration Paid

Individuals with employment income will receive an annual T4 slip, Statement of Remuneration Paid, from their employer(s). It summarizes an individual’s employment earnings and deductions for the year (January 1 - December 31).

The total employment income is reported in box 14 and entered on line 10100 - Employment income. This amount will generally entitle an individual to claim the non-refundable tax credit, Line 31260 - Canada employment amount.

Other amounts commonly shown on a T4 slip may entitle an individual to claim certain credits and deductions. They may also affect their total payable (the amount of tax owed). They are shown in the following boxes and affect the following lines on a tax return:

• Box 16, Employee’s CPP contributions - used to calculate:
  • Line 30800 - Base CPP or QPP contributions through employment income; and
  • Line 22215 - Deduction for CPP or QPP enhanced contributions on employment income
• Box 18, Employee’s EI premiums - used to calculate line 31200 - Employment insurance premiums through employment
• Box 20, RPP contributions - claimed on line 20700 - Registered pension plan (RPP) deduction
• Box 22, Income tax deducted - entered on line 43700 - Total income tax deducted
• Box 44, Union dues - claimed on line 21200 - Annual union, professional, or like dues
• Box 52, Pension adjustment - entered on line 20600 – Pension adjustment

The following boxes are for information only:

• Box 24 - EI insurable earnings
• Box 26 - CPP /QPP pensionable earnings

T4E - Statement of Employment Insurance and Other Benefits

Individuals may receive a T4E slip if they received employment insurance benefits and leave for:

• Regular benefits
• Sickness benefits
• Maternity and parental benefits

The T4E slip issued from Service Canada will show amounts such as:

• Box 7 - Repayment rate
• Box 14 - Total benefits paid
• Box 15 - Regular and other benefits paid
• Box 22 - Income tax deducted
• Box 30 - Total repayment

Box 14 shows the Total benefits paid to the individual during the year. Boxes 15, 17, 18, 33, 36 and 37 indicate the type of benefits paid and are included in box 14. The Canada Emergency Response Benefit (CERB) payments are also included in box 14. For more information, see CRA and COVID-19.

Box 22 shows the Income tax deducted at the source. This amount directly affects the total payable on the individual’s income tax and benefit return.

In some cases, individuals may have to repay some of the benefits they received. Box 7 shows the repayment rate for their EI benefit. Individuals will have to complete the repayment chart (found on the back of the T4E slip) to calculate how much of the benefits they have to repay. This amount is reported on line 23500 Social benefits repayment and line 42200 Social benefits repayment of the tax return.

In cases where overpayment amounts were recovered or repaid in the tax year, the total amount will appear in box 30 (which includes Box 26 Overpayment recovered or repaid and Box 27 Reversal of income tax deducted). The Canada Emergency Response Benefit (CERB) repayments are also included in box 30. For more information, see CRA and COVID-19.

Tips, gratuities and occasional earnings

Tips, gratuities, or occasional earnings may not be shown on a T4 slip. If they are not included, it is the individual’s responsibility to provide you with the amounts. The amount earned from January 1 through December 31 must be reported on line 10400 of the individual’s tax return.

Individuals may not have contributed to the CPP for certain income they earned through employment, or they may have contributed less than required. This can happen if any of the following apply:

• they had multiple employers during the year
• they had income, such as tips, from which their employer did not have to withhold contributions
• they were in a type of employment that was not covered under CPP rules, such as casual employment

To calculate and make additional CPP contributions, complete Form CPT20, Election to pay Canada Pension Plan Contributions. For more information, see Line 30800 – Making additional CPP contributions.

Canada workers benefit (CWB)

The Canada workers benefit (CWB) is a refundable tax credit to help working individuals and families earning a low income.

The CWB has two parts:

• basic amount
• disability supplement

For the basic amount, an individual may be eligible if they:

• have employment income
• are a resident of Canada for income tax purposes throughout the year
• are 19 years of age or older on December 31, or they live with their spouse or common-law partner or their child

For the disability supplement, an individual may be eligible if they:

• are eligible for the disability tax credit and have an approved form T2201, Disability Tax Credit Certificate, on file with the Canada Revenue Agency

For more information, see Canada workers benefit – Overview.

Canada workers benefit (CWB) advanced payments

Individuals eligible for the Canada workers benefit (CWB) can receive up to half of their CWB in advance payments. Individuals must apply by August 31^st to receive advance payments which will be issued as four separate instalments. The amount received in the calendar year will appear in box 10 of the RC210. For more information, see Canada workers benefit – Claim and apply.

Background information

Slips included:

• T4 – Statement of Remuneration Paid (ABC Ltd.)
• T4 – Statement of Remuneration Paid (Le Gourmet)
• T4E – Statement of Employment Insurance and Other Benefits
• RC210 – Canada workers benefit advance payments statement

Situation 1: Reporting employment income

Sandra worked at ABC Ltd. during the year.

Slips required:

• T4 – Statement of Remuneration Paid (ABC Ltd.)

Points to remember:

• In the interview setup, check the box next to Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section to enter the T4 slip.

Situation 2: EI benefits, and CWB advance payments

Sandra worked at ABC Ltd. She lost her job during the year and started receiving employment insurance benefits, as well the CWB advance payments.

Slips required:

• T4 – Statement of Remuneration Paid (ABC Ltd.)
• T4E – Statement of Employment Insurance and Other Benefits
• RC210 – Canada workers benefit advance payments statement

Points to remember:

• In the Interview setup, check the box next to Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section to insert the T4 and T4E slips.
• In the left side menu, select Other information slips to enter the RC210 slip.
• The entitled Canada workers benefit (CWB) credit will be displayed on line 45300 Canada workers benefit (CWB) (schedule 6). The CWB advance payments received will be displayed on Line 41500 – Canada workers benefit (CWB) advance payments received.

Situation 3: Tips and additional CPP contributions

Sandra worked at ABC Ltd. and Le Gourmet at the same time. She informed us that she received tips while working at Le Gourmet for a total of $2,000, which was not included on her T4 slip. Sandra would like to make additional CPP contributions for the tips she earned. The address for Le Gourmet is 789 Main Street, City, Province X0X 0X0.

Slips required:

• T4 – Statement of Remuneration Paid (ABC Ltd.)
• T4 – Statement of Remuneration Paid (Le Gourmet)

Points to remember:

• In the Interview setup, check the box next to Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section to enter the T4 slips
• Since Sandra has received tips and would like to make additional contributions to the CPP, select T4 and employment income from the left side menu. Then, select the + sign next to Tips and CPT20 – CPP Election for Other employment earnings
• UFile will automatically calculate the additional CPP contributions applicable to the other employment income

Information slip for Sandra:

T4 – Statement of Remuneration Paid (ABC Ltd.)

T4 – Statement of Remuneration Paid (Le Gourmet)

T4E – Statement of Employment Insurance and Other Benefits

RC210 – Canada workers benefit advance payments statement

Situation 1: Reporting employment income

Situation 2: Reporting employment income, EI benefits and CWB advance payment

Situation 3: Reporting employment income, tips and additional CPP contributions