T4 slips explained: How Canadian employers file employment income with CRA

Published Friday 2 October 2026

Table of contents

• What is a T4 slip?
• Who needs to file a T4 slip?
• T4 vs T4A: What's the difference?
• What information goes on a T4 slip?
• What is the T4 Summary?
• When are T4 slips due, and what are the penalties?
• How to file T4 slips with the CRA
• How to give employees their T4 slips
• Simplify T4 season with Xero
• FAQs on T4 slips

Key takeaways

• A T4 slip reports the pay and payroll deductions for each employee over a calendar year, and copies go to both the employee and the Canada Revenue Agency (CRA).
• You file a T4 for anyone you paid more than $500 in the year, or from whom you deducted Canada Pension Plan (CPP), Employment Insurance (EI), or income tax.
• T4 slips for the 2026 tax year are due 1 March 2027, and your employees need their copies by the same date.
• Most small employers now file T4 slips online, since anyone filing more than five slips must file electronically.

What is a T4 slip?

A T4 slip, officially the Statement of Remuneration Paid, is the form that reports the total pay and payroll deductions for each employee over a calendar year. As a Canadian employer, you complete one for every employee and send copies to both the worker and the Canada Revenue Agency (CRA).

Think of it as the yearly record that ties your payroll together. It shows what you paid someone and what you held back for CPP, EI, and income tax, so the numbers on your books line up with what the government expects. Filing a T4 is a routine part of running payroll, and once you've done it once, the pattern repeats each year.

Who needs to file a T4 slip?

You need to file a T4 slip for any employee who meets one of the CRA's tests below. This applies whether you're incorporated or a sole proprietor with staff on payroll.

You must file a T4 for each employee who:

• Was paid more than $500: any employee you paid over $500 in the calendar year needs a slip
• Had deductions taken: anyone from whom you deducted CPP, EI, or income tax, no matter the amount
• Received taxable benefits: any employee who received taxable group term life insurance benefits during the year

If you're unsure whether someone crosses these lines, the safer move is to file. The CRA's employers' guide to filing the T4 slip and Summary walks through the edge cases in detail.

T4 vs T4A: What's the difference?

The short answer is what kind of income you're reporting. A T4 reports employment income with source deductions for people on your payroll, while a T4A slip in Canada reports other income.

A T4A covers things like fees for services, self-employed commissions, and pension or retirement income. If you hire a contractor rather than an employee, their pay usually belongs on a T4A, not a T4.

Getting the right slip matters because the two forms tell the CRA different things about the relationship. When you run payroll and withhold deductions, that's a T4. When you pay someone outside payroll for a service, look to the T4A instead.

If you're not sure how to classify a worker, base it on how the work is done rather than the job title. Someone who sets their own hours and invoices you for a project usually points to a T4A, while someone you direct day to day and pay through payroll points to a T4.

What information goes on a T4 slip?

Each T4 slip is a grid of numbered boxes, and most small employers only fill in a handful of them. The boxes report the totals you already track through payroll across the year.

Here are the key boxes you'll usually complete:

• Box 14: employment income, the total pay before deductions
• Box 16 and 17: the employee's CPP or Quebec Pension Plan (QPP) contributions
• Box 18: EI premiums you deducted
• Box 22: income tax deducted
• Box 24: EI insurable earnings
• Box 26: CPP or QPP pensionable earnings
• Box 10: the province of employment

You'll notice most boxes simply mirror figures from your payroll records. If your pay runs are accurate through the year, filling in these boxes becomes a matter of copying the totals across. That's one reason keeping payroll records accurate through the year pays off when February arrives.

What is the T4 Summary?

The T4 Summary adds up the amounts from all the individual T4 slips you're filing, so the CRA can reconcile them in one place.

If you file your slips electronically, you generally don't submit a separate paper Summary, because the electronic system captures those totals for you. This is one reason many small employers find online filing simpler, since it removes a step.

The T4 Summary lets the CRA cross-check your totals against the sum of the individual slips. When both sets of figures agree, your filing is complete and you're less likely to get a follow-up query. If they don't match, that's usually a sign a box was keyed wrong on one of the slips, so a quick review before you send saves time later.

When are T4 slips due, and what are the penalties?

Your T4 slips are due to the CRA by the last day of February each year. For the 2026 tax year, the due date is 1 March 2027 because February 28 is a Sunday. Your employees need their copies by that same date.

Filing late has a cost, so it's worth putting the date in your calendar early. The main penalties to know are:

• Late filing: The penalty starts at a minimum of $100 and scales up with the number of slips and how many days you're late, to a maximum of $7,500.
• Paper filing over the limit: Since January 2024, more than five information returns must be filed electronically, and filing on paper over that limit brings a penalty that starts at $125 and rises with the number of slips.

Meeting the deadline is straightforward once your payroll totals are ready. The CRA's payroll overview for businesses is a helpful reference if you want to confirm dates for a future year.

How to file T4 slips with the CRA

Filing T4 slips follows the same sequence every year, and you can work through it step by step. Here's how to file a T4 in Canada from start to finish.

1. Gather your payroll totals

Pull together the year's totals for each employee: gross pay, CPP or QPP contributions, EI premiums, and income tax deducted. These figures come straight from your payroll records, so having them organized makes the rest of the process quick.

2. Complete a T4 slip for each employee

Fill in a separate T4 slip for every employee, entering their totals in the matching boxes. Double-check names, social insurance numbers, and the province of employment while you're at it.

3. Total everything on the T4 Summary

Add up the amounts across all your slips on the T4 Summary. If you're filing electronically, the system handles this total for you rather than asking for a separate paper form.

4. File electronically, or on paper if you have 5 or fewer slips

File your slips through the CRA's online service, which is required once you have more than five slips. You can review the options on the CRA page for filing information returns electronically.

5. Give employees their copies

Send each employee their copy of the T4 slip by the same deadline. You can do this electronically with their consent, by mail, or in person.

6. Keep your records

Hold on to your payroll records and a copy of each slip. If a question comes up later, having everything filed away means you can answer it quickly.

How to give employees their T4 slips

You need to give each employee their T4 slip by the filing deadline, the same last day of February. You have a few ways to get slips into their hands.

Your options for distributing slips are:

• Electronically: send slips online, provided the employee has given consent to receive them that way
• By mail: post a printed copy to the employee's address on file
• In person: hand a printed copy directly to the employee

Whichever method you choose, aim to deliver early rather than on the deadline. Giving people time to check their slip means fewer last-minute questions when they file their own return.

Simplify T4 season with Xero

T4 season feels lighter when your pay records stay accurate and organized all year. With Xero and its online payroll software, your payroll figures update as you go, so the totals you need for each box are ready when February arrives instead of scattered across spreadsheets.

That means less scrambling to reconcile numbers and more confidence that what you file matches what you paid. Ready to make next tax time easier?

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FAQs on T4 slips

Here are quick answers to common questions employers ask about filing T4 slips.

How do you get a T4 slip as an employer?

You don't request a blank slip in the mail; you complete one yourself through the CRA's online filing service or accounting software. Each slip pulls from the payroll totals you've tracked across the year.

When do you have to send T4 slips to employees?

You need to give employees their copies by the last day of February, which is 1 March 2027 for the 2026 tax year. That's the same date your slips are due to the CRA.

Do you need to file a T4 if you only paid an employee a small amount?

Often yes, because the $500 threshold isn't the only test. If you deducted any CPP, EI, or income tax from their pay, you file a T4 regardless of how little you paid them.

What happens if you file your T4 slips late?

You'll face a late-filing penalty that starts at a minimum of $100 and rises with the number of slips and days late, to a maximum of $7,500. Filing on time is the simplest way to keep that cost off your books.

Can you file T4 slips online?

Yes, and you have to file online once you have more than five slips. Electronic filing also removes the need to submit a separate paper T4 Summary.