What is a T4 in Canada?

T4 is the statement of your salaries and wages that you get from your employer, and you report this income on your T1 general individual income tax return.

Every employer in Canada has to issue a T4 to its employee after the end of the calendar year. In this T4 the employer states the gross amount of salaries and wages paid to the employee, CPP, QPP, EI, and Income tax withheld during the year.

A T4 must also include the name of the employee, his/her social insurance number and address, the province in which he/she was employed, the employer’s name and address, and the employer’s business number with extension RP 0001. 

The employer has to file a copy of the T4 to CRA also by the end of February following the end of the calendar year. In this filing, the employer also includes a summary return stating the gross amount of all wages and salaries paid to all employees, taxes withheld, and the total amount remitted to CRA. In Canada, the employer files this information on T4 SUM.

In addition to the gross wages paid, the employer must also record the amount or value of any other benefit provided to the employee. If the employer has set up a retirement benefit plan, the employer must also record the contribution made to that plan. If the workers are unionized and the employer deducts any union dues then this amount should also be reported on the T4.

Below are the box numbers on the T4 form with an explanation of the item reported

14 – Employment income

16 – Employee's CPP contributions 

17 – Employee's QPP contributions 

18 – Employee's EI premiums

20 – RPP contributions

22 – Income tax deducted

39 – Security options deduction 110(1)(d)

41 – Security options deduction 110(1)(d.1)

42 – Employment commissions

43 – Canadian Armed Forces personnel and police deduction

44 – Union dues

46 – Charitable donations

52 – Pension adjustment

55 – Provincial parental insurance plan (PPIP)

66 – Eligible retiring allowances67 – Non-eligible retiring allowances

74 – Past service contributions for 1989 or earlier years while a contributor

75 – Past service contributions for 1989 or earlier years while not a contributor

77 – Workers' compensation benefits repaid to the employer

78 – Fishers – Gross income

79 – Fishers – Net partnership amount

80 – Fishers – Shareperson amount

81 – Placement or employment agency workers

82 – Taxi drivers and drivers of other passenger-carrying vehicles

83 – Barbers or hairdressers

85 – Employee-paid premiums for private health services plans 

87 – Emergency services volunteer exempt amount

69 – Indian (exempt income) – Non-eligible retiring allowances

71 – Indian (exempt income) – Employment

88 – Indian (exempt income) – Self-employed