Reporting employment income (T4)
Pre-test question
Sorry, that is incorrect
The individual must contact their employer about incorrect information on a T4 slip. The employer will send the corrected T4 slip information to the CRA. If the tax return must be adjusted, the individual can make the request or if the tax return is eligible for ReFILE it may be submitted by the volunteer.
That is correct
The individual must contact their employer about incorrect information on a T4 slip. The employer will send the corrected T4 slip information to the CRA. If the tax return must be adjusted, the individual can make the request or if the tax return is eligible for ReFILE it may be submitted by the volunteer.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to Key points of the tax software and the Takeaway points
Background information
Situation
Sandra worked at ABC Ltd. during the year. She also received Advanced Canada workers benefit payments.
| Categories | Datas |
|---|---|
| Name | Sandra Couture |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth | May 5, 1995 |
| Marital status | Single |
Required slips
T4 – Statement of Remuneration Paid (ABC Ltd.)
Text version of the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: ABC Ltd.
Employee’s name and address:
Last name: Couture
First name: Sandra
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 18,000.00
Box 16: Employee’s CPP contributions – see over: 761.25
Box 18: Employee’s EI premiums: 284.40
Box 20: RPP contributions: 1,000.00
Box 52: Pension adjustment: 1,800.00
Box 22: Income tax deducted: 700.00
Box 24: EI insurable earnings: 18,000.00
Box 26: CPP/QPP pensionable earnings: 18,000.00
Box 44: Union dues: 200.00
Box 45: Employer-offered dental benefits: 1
RC210 – Advanced Canada workers benefit (ACWB) statement
Text version for the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Couture, Sandra
123 Main Street
City, Province X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
Review your results
Solution to Reporting Employment income (T4).
Key points of the tax software
Important note
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
Sandra's interview
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 income (earned in any province except Quebec) in the T4 and T4E section
- Enter the information from the T4 slip
Advanced Canada workers benefit
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500]
- Enter the information from the RC210 slip
Takeaway points
- Individuals who worked and earned a salary during the year should receive a T4 slip from their employer
- The tax software automatically reports the amounts from the boxes on the T4 to the matching lines of the tax return
- If a box is blank on a T4 slip, leave the matching field blank in the tax software
- Employment income is in box 14 of the T4 slip and reported on line 10100 of the tax return
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