What to report and what not to report on T4 slips

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It is the obligation of the taxpayer, the employer and the payee to report the income accurately. The employer can correct a reporting error. The employer cannot change the nature of the income paid (for example, from salary to dividends). This is considered retroactive tax planning and is viewed as inaccurately changing the reporting of the income.

Types of income you should report on T4 slips

Most amounts paid to an individual by an employer are referred to as remuneration. You have to fill out a T4 slip to report the following:

You have to fill out T4 slips for all individuals who received remuneration from you during the year if:

You have to report income on a T4 slip for the year during which it was paid, regardless of when the services are performed, or if the employee is deceased. For example, you pay your employee in January 2021 for income they earned in December 2020. You will have to report that income on their T4 slip for 2021 since that is the year it was paid. 

If you provide employees with taxable group term life insurance benefits, you always have to prepare T4 slips, even if the total of all remuneration paid in the calendar year is $500 or less. If you provide former employees or retirees with such benefits, you have to prepare a T4A slip. For more information, see Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary.

If you provide either an employee, a former employee, or a non-resident employee with security options benefits, you have to prepare a T4 slip. For more information, go to Security options.

Types of income you should not report on T4 slips

The following types of income are not reported on a T4 slip.

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