Beating the February Deadline
Every year, Canadian employers must issue T4 slips to employees by the last day of February. A robust T4 Filing Checklist is your best defense against the stress of tax season.
Step 1: Reconcile Source Deductions
The first item on your T4 Filing Checklist should be reconciling your total remittances with your payroll records. Any discrepancies found now are much easier to fix before the slips are filed with the CRA.
Step 2: Review Employee Information
Ensure you have correct Social Insurance Numbers (SINs) and current addresses. Inaccurate data on a T4 slip can lead to delays in your employees’ personal tax returns and extra work for you later.
Step 3: Calculate Taxable Benefits
A crucial part of your T4 Filing Checklist is ensuring all non-cash benefits—like life insurance premiums or gym memberships—are added to the appropriate boxes on the T4 slip.
Step 4: Prepare the T4 Summary
Once individual slips are ready, you must complete the T4 Summary. This document totals all the information from the slips and must match your total remittances for the year. Precision is key here.
Conclusion
Year-end doesn’t have to be a nightmare. Following a professional T4 Filing Checklist ensures you start the new year on a high note with the CRA.