What’s a T4 slip? What small businesses should know

T4 slips are a key part of your payroll responsibilities 

Payroll has an annual lifecycle. At the end of each fiscal year, employers must issue a T4 slip (Statement of Remuneration Paid) for each employee. Your employees and the CRA must receive these tax documents by the last business day of February immediately following the completed fiscal year. 

Your employees will use their T4s to file their personal income tax returns, while the CRA will use the T4s to verify that your business has stayed on top of its payroll tax obligations. 

Here’s a quick recap of what you need to know about form with a short name and a long list of responsibilities. 

What is a T4 slip?

A T4 slip is how your business reports employee income and deductions to the CRA. Each slip shows total earnings, deductions, and taxable benefits, broken down by a set of key boxes and codes. 

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What’s included in a T4 slip?

A T4 includes all forms of taxable income and benefits, such as:

• Wages, salaries, bonuses, commissions, statutory holiday and vacation pay.
• Taxable benefits, like health spending accounts, gym memberships, or personal use of a company vehicle (basically, anything that the government considers income). 

Note: Income on T4s is reported based on when it was paid, not when it was earned. 

When are T4 slips due?

The deadline to issue and file T4 slips and summaries is the last day of February following the tax year. For example, slips for 2025 must be filed and distributed by February 27, 2026.

A T4 is considered on time if it’s received or postmarked on or before the due date. If the last day of February is a weekend or public holiday, it’s due the next business day.  

What happens if you miss the February T4 deadline?

Missing the February T4 deadline has a huge impact on you and your employees. 

• In addition to breaking your promise to manage their payroll the right way, your employees will also be delayed in filing their personal income taxes.
• An equally unhappy CRA assigns fines starting day one — penalties that multiply by both the number of T4s and days late. 

Who gets a copy of the T4 slips?

Both your employees and the CRA get copies of the T4 slips — but for different reasons.

What to know about employee T4s

• Every employee who was paid more than $500 or had income tax, CPP, or EI deducted must receive a copy of their T4 slip.
• If an employee was paid in more than one province or territory during year, you’ll have to create a T4 for each location. 
  
• Income in Québec is reported using a Relevé 1 (RL-1 Employment and Other Income) slip. 
• You can give employees their T4s in person or via mail, e-mail or an online portal. 

What to know about sending T4s to the CRA

• If you issue more than 5 T4s, you must submit them electronically. (If you have fewer than 5 or can’t file electronically, paper is allowed. However, electronic filing is preferred.) 
• You must also send a T4 Summary that recaps all the T4 information for your business. Without this report, your submission will be considered incomplete. 
• If you have more than one payroll account, you’ll have to file T4s and a T4 Summary for each account. 
• For record-keeping, you should retain either electronic or paper copies for the current year plus six years after. 
• As this is financial information, you’ll also want to ensure that you protect your employee and business data. (Yet another vote for electronic submissions.) 

What are some tips for completing a T4?

Tip # 1: Use payroll software that creates them automatically. Otherwise, here are a few key dos and don’ts:

Do

• Report all amounts in Canadian dollars.
• Use dollars and cents for everything except pension adjustments, which are dollars only. 
• Leave unused boxes completely blank.  

Don’t

• Use dollar signs ($).
• Show negative dollar amounts. 
• Enter “nil” or “N/A” in unused boxes. 
• Add hyphens or dashes between numbers. 
• Change any box headings.  

Pro Tip: With payroll software, you can also automate the creation of your T4 Summary and submission to the CRA. 

Keep your payroll on track all year long 

From the first payroll of the year to the last, the best way to stay on top of things and prevent mistakes is to use payroll software, like Huumans. Because we feel this in our bones and we want you to spend more time on your business, we’re offering free payroll for a year for up to 5 employees. 

Resources

For more information on small business payroll, see these helpful links: 

Huumans blog 

• Payroll taxes 101
• Record-keeping 101
• A checklist for choosing payroll software

CRA

• Employers' Guide – Filing the T4 Slip and Summary
• T4 slip — Information for employers
• Downloadable and fillable T4s

FAQs

Who gets a copy of the T4 slip?

Both your employees and the CRA receive copies. Employees use their T4s to file their taxes, while the CRA uses them to verify your payroll reporting.

What is the minimum income for a T4 slip?

You must issue a T4 slip if an employee earned more than $500 in the calendar year or if you deducted income tax, CPP, or EI — even if they earned less than $500.

What’s the difference between a T4 and a T4A?

A T4 is for employees. A T4A is for independent contractors or people you paid more than $500 in non-employment income (like fees or commissions).

How do I file T4 slips with the CRA?

You can file electronically through My Business Account, Web Forms, or Internet File Transfer (XML). Or, use payroll software to make it even easier. 

How long do I need to keep T4 records?

Keep T4 slips, summaries, and related payroll records for six years after the end of the tax year (either in paper or electronic format).

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Fine print changes all the time. We do our best to keep things accurate and helpful, but this blog doesn’t replace your accountant, bookkeeper, or lawyer.

If you catch something off, let us know and we’ll fix it. And if we link to other sites, that’s just us sharing resources — what they say is on them, not us.