What is a T4 slip? A guide for Canadian employers

Published Friday 2 October 2026

Table of contents

• What is a T4 slip?
• Who must prepare and send T4s to employees?
• What’s on a T4 tax form?
• How to file your T4s with the Canada Revenue Agency
• Ways to avoid common T4 filing errors and penalties
• Tips to simplify T4 employment reporting
• Make T4 season easier with Xero
• FAQs on T4 slips

Key takeaways

• A T4 slip reports what you paid an employee in a calendar year and what you deducted. You send copies to the employee and the Canada Revenue Agency (CRA).
• T4 slips and the T4 Summary are due the last day of February, or the next business day if that’s a weekend or holiday. For the 2026 tax year, that’s expected to be Monday, March 1, 2027.
• For 2026, the maximum employee contributions are $4,230.45 for the Canada Pension Plan (CPP) and $416 for second additional CPP contributions (CPP2). The Employment Insurance (EI) maximum is $1,123.07 outside Quebec.
• If you have more than five slips, you must file electronically. Late filing brings a daily penalty based on how many slips are late.

What is a T4 slip?

A T4 slip is the official record of everything you paid an employee during a calendar year, plus the tax and other amounts you deducted. Think of it as a one-page summary of your business payroll for one person.

You use it to tell the CRA how much each employee earned, and how much tax and payroll deductions you withheld and remitted. Your employee uses the same slip to file their personal income tax return.

Say you run a café with four staff. Each person gets their own T4 slip early in the new year, and the CRA gets all four with your T4 Summary.

The CRA lists several methods of giving T4 slips to employees. You can send them:

• by email, once the employee has given you written consent
• through your secure employer portal, where employees can view and print them
• on paper in person, with two copies for each employee
• on paper by mail, also with two copies

Key information to include on a T4 slip

Each T4 slip covers the employee’s income, the deductions you took and a few other amounts. Employment income includes:

• salaries or wages
• bonuses, tips and gratuities
• commissions
• vacation pay

The deductions side shows what you withheld from the employee’s pay. Report:

• federal and provincial income tax withheld
• CPP contributions, employee share only
• EI premiums, employee share only
• other mandatory deductions

Some slips also need extra amounts. Where they apply, include:

• taxable benefits or allowances
• pension adjustments
• gross and insurable earnings for self-employed fishers
• employer-offered dental benefits in box 45

Who must prepare and send T4s to employees?

Any business or organization that pays employment income must prepare T4 slips for employees who meet the CRA’s thresholds. That includes full-time and part-time staff, seasonal workers and commissioned employees.

Under the CRA’s T4 slip rules, you need to issue a slip if either of these applies:

• you deducted CPP or Quebec Pension Plan (QPP) contributions, EI premiums, provincial parental insurance plan (PPIP) premiums or income tax
• the employee’s total remuneration for the year was more than $500

Taxable group term life insurance is the exception to the $500 threshold. For current employees, report it on a T4 slip whatever the amount. For former employees or retirees, it goes on a T4A slip if it’s more than $50.

T4 slips are for employees only. Where a slip is required, fees paid to independent contractors (freelancers) go on a T4A instead. So do amounts paid to a proprietor or partner of an unincorporated business.

What’s on a T4 tax form?

A T4 slip has two main parts: identification details, and numbered boxes for income, deductions and taxes. The CRA uses both to match each slip to the right employee and employer.

Identification

The identification section ties the slip to you and your employee. Include:

• your legal name, your operating or trading name if it’s different, and your address
• the employee’s name, address and postal code
• the province or territory of employment in box 10
• the employee’s social insurance number (SIN) in box 12
• the calendar year you’re reporting

Salary, deductions and taxes

The rest of the slip is a series of numbered boxes. These are the boxes you’ll use most often.

Box 14: employment income

Box 14 shows total employment income before deductions. That includes wages, salary, bonuses, commissions and vacation pay.

Boxes 16, 16A and 17A: CPP and QPP contributions

Box 16 shows the employee’s CPP contributions only, so leave out your employer share. For 2024 slips onward, report CPP2 contributions in box 16A when box 10 shows a province other than Quebec.

For employees working in Quebec, second additional QPP (QPP2) contributions go in box 17A. Pensionable earnings belong in box 26, covered below.

Box 18: EI premiums

Box 18 shows the EI premiums you deducted from the employee’s pay during the year. Leave out your employer share of EI premiums.

When you report an amount here, report insurable earnings in box 24 as well.

Box 22: income tax deducted

Box 22 shows the total income tax deducted from the employee’s pay. That covers federal, provincial (except Quebec) and territorial tax, and you leave the box blank if you deducted none.

Box 24: EI insurable earnings

Box 24 shows the earnings you used to calculate the EI premiums in box 18, up to the year’s maximum insurable earnings. It’s often the same amount as box 14.

Box 26: CPP or QPP pensionable earnings

Box 26 shows the earnings you used to calculate CPP or QPP contributions, including CPP2 or QPP2. It’s usually the same amount as box 14.

Boxes 24 and 26 should always have an amount in them. If either is blank, the CRA uses box 14 to work out any CPP or EI shortfall or overpayment.

Box 28: exemptions

Box 28 shows whether the employee was exempt from CPP or QPP contributions, EI premiums or PPIP premiums. Tick it only when the exemption covered the entire reporting period.

Box 29: employment codes

Box 29 holds a code for specific kinds of work, such as placement or employment agency workers, taxi drivers, and barbers or hairdressers. Participants in the Seasonal Agricultural Workers Program also get a code.

Box 45: employer-offered dental benefits

Box 45 has been mandatory on every T4 slip since the 2023 tax year, including 2026 slips. It shows whether the employee or their family could access dental insurance you offered on December 31.

The CRA sets out five box 45 codes for 2026. Enter:

• code 1 if the employee wasn’t eligible for any dental care insurance
• code 2 if only the employee was eligible
• code 3 if the employee, their spouse and their dependent children were eligible
• code 4 if the employee and their spouse were eligible
• code 5 if the employee and their dependent children were eligible

Security options codes for 2026

If you report security options benefits, the other information area of the slip has a 2026 change. For 2026 and later calendar years, the CRA accepts only codes 38, 39 and 41 for these benefits and related deductions.

2026 CPP and EI limits

CPP and EI deductions stop once an employee reaches the yearly maximums, so these figures shape boxes 16, 16A, 18, 24 and 26. Each time you run payroll in 2026, deduct up to these limits for employees outside Quebec.

For 2026, the CPP figures you’ll use are:

• a basic exemption of $3,500, which stays frozen at that amount
• a year’s maximum pensionable earnings (YMPE) of $74,600
• a year’s additional maximum pensionable earnings (YAMPE) of $85,000
• an employee and employer contribution rate of 5.95%, up to $4,230.45 each
• a CPP2 rate of 4% on earnings between the YMPE and YAMPE, up to $416 each

EI works the same way, with its own ceiling. For 2026, the EI figures are:

• maximum insurable earnings of $68,900
• an employee premium rate of 1.63%, up to $1,123.07 for the year
• an employee premium rate of 1.30% in Quebec, up to $895.70 for the year
• an employer premium of 1.4 times the employee premium

Picture an employee in Ontario earning $90,000 in 2026. They’d reach the CPP maximum of $4,230.45, the CPP2 maximum of $416 and the EI maximum of $1,123.07, and box 24 would show $68,900. These limits reset every year, so check the CRA’s rate pages again for 2027.

How to file your T4s with the Canada Revenue Agency

File your T4 slips and T4 Summary with the CRA, and give employees their copies, by the last day of February after the tax year. When that date lands on a weekend or public holiday, the deadline moves to the next business day.

Create a separate T4 slip for each province or territory where the employee earned income. With your slips, file the T4 Summary, which totals the amounts on all your slips. That covers employment income, CPP contributions, EI premiums and income tax deducted.

Work through these three steps to get your T4 return in on time.

1. Choose your filing method

The CRA accepts T4 returns electronically or on paper, and electronic filing is faster. Filing electronically lets you:

• get confirmation quickly
• file securely
• make changes after you file
• have an authorized representative, such as a tax preparer, file for you

If you file more than five information returns for a calendar year, you must file them electronically. For example, a business with eight employees has eight T4 slips, so it files online.

Filing more than five slips on paper brings a flat penalty based on the number of slips:

• $125 for 6 to 50 slips
• $250 for 51 to 250 slips
• $500 for 251 to 500 slips
• $1,500 for 501 to 2,500 slips
• $2,500 for 2,501 slips or more

Filing online works with or without a web access code. With a code, you can use Web Forms or Internet file transfer. Without one, sign in to My Business Account, or Represent a Client if you’re filing as a representative.

Web Forms lets you file up to 100 slips straight from the CRA website. It also:

• handles original, additional, amended and cancelled slips
• checks your data as you go and prompts you to fix errors
• calculates the T4 Summary totals for you
• lets you save, import and print your slips and summary

Internet file transfer suits businesses that use payroll software. You can upload an XML file of up to 150 MB created by third-party software, or build your own file, which takes longer. When you file electronically, skip sending paper copies of the slips or T4 Summary to the CRA.

If you have five slips or fewer, you can file on paper using the T4 slip form in PDF or fillable PDF format. Fill out one slip per employee, then mail the slips with your T4 Summary to the address on the summary. Keep a copy of both for your records.

2. Confirm the filing deadlines

The exact T4 deadline shifts from year to year because of the weekend rule. For most employers, 2025 T4 slips were due March 2, 2026, because February 28, 2026 fell on a Saturday.

For the 2026 tax year, February 28, 2027 is a Sunday, so slips are expected to be due Monday, March 1, 2027. Confirm the date in the CRA’s employer guide as filing season gets closer.

The same deadline applies to giving employees their copies. When an employee leaves during the year, the deadline stays the same.

Two situations bring the deadline forward. If your business stops operating, file within 30 days of that date. If a sole proprietor or partner dies, file within 90 days of the death.

If you file late, the CRA charges a daily penalty based on how many slips are late, with a minimum of $100:

• $10 a day for 1 to 50 slips, up to $1,000
• $15 a day for 51 to 500 slips, up to $1,500
• $25 a day for 501 to 2,500 slips, up to $2,500
• $50 a day for 2,501 to 10,000 slips, up to $5,000
• $75 a day for 10,001 slips or more, up to $7,500

A separate penalty applies when employees get their copies late. It’s $25 a day for each slip, with a minimum of $100 and a maximum of $2,500.

3. Submit your T4 slips and T4 Summary

Once your slips and summary are ready, you can file them through your CRA account. Follow these steps:

1. Sign in to My Business Account through the CRA sign-in services, or use Represent a Client if you’re a representative.
2. Choose to file your T4 return using Web Forms or an XML file upload.
3. Enter or upload your slips and T4 Summary, then review the totals.
4. Submit the return and save the confirmation number for your records.

Ways to avoid common T4 filing errors and penalties

A careful review before you file keeps your T4 slips accurate and your overall payroll compliance on track. Start with these checks.

Verify employee information

Check that each employee’s name, address and SIN match your payroll system exactly. Confirm the calendar year you’re reporting, too.

Double-check your deductions

Accurate deductions save you from filing amendments later. Common deduction errors include:

• under-deducting CPP contributions or EI premiums
• deducting CPP, CPP2 or EI after the employee reaches the 2026 maximum
• under-deducting or over-deducting income tax
• leaving year-end adjustments to income, deductions or contributions off the slip

If you under-deducted CPP or EI, you’re responsible for remitting both the employee and employer shares of the balance. The CRA can also find these gaps through a pensionable and insurable earnings review (PIER).

A year-end checklist makes this review faster. List each employee’s income and deductions, then check every T4 slip against it before you file.

Correct mistakes promptly

You can add, amend or cancel T4 slips after you file the original return. The CRA lets you amend T4 slips online or on paper, whichever method you used the first time.

Two situations need no amendment: an address-only change, and a PIER report. For a PIER, reply to the report with the changes, and the CRA prepares any amended slip and sends it to you.

Tips to simplify T4 employment reporting

Good records kept all year make T4 preparation quicker. These habits help.

Use an integrated payroll system

Integrated payroll software automates pay runs and deduction calculations, saving you time and cutting errors. It also tracks year-to-date totals, so you can see when each employee reaches a 2026 maximum.

Before you prepare slips, reconcile each employee’s year-to-date deductions against the 2026 caps. Outside Quebec, those are $4,230.45 for CPP, $416 for CPP2 and $1,123.07 for EI. Any amount above a cap is an over-deduction to fix before filing.

Keep accurate records

Up-to-date records capture changes to each employee’s pay as they happen, such as a raise that increases income tax or CPP deductions. Organized records mean fewer year-end surprises and a calmer T4 season.

Offer electronic T4 options

Electronic delivery gets T4 slips to employees instantly and saves on printing and postage. For email, get the employee’s written consent first.

A secure employer portal works without consent for most current employees. Use email with consent, or paper, when the employee:

• is a former employee
• is on extended leave
• has asked for a paper copy
• can’t reasonably access the slip electronically when you issue it

Paper slips still go out as two copies per employee, in person or by mail.

Make T4 season easier with Xero

Accurate T4 slips start with clean payroll data all year, and preparing early gives you time to fix errors before the deadline. Xero keeps your bookkeeping, payroll and reporting in one place, so your year-end figures are easier to check. Try Xero today and get one month free.

FAQs on T4 slips

These answers cover common questions small business owners ask about T4 slips.

When are T4 slips due for the 2026 tax year?

They’re expected to be due Monday, March 1, 2027, because February 28, 2027 falls on a Sunday. You can file and hand out slips any time after December 31, 2026, which gives you extra time to fix errors.

Do I need to issue a T4 if I paid an employee less than $500?

Yes, if you deducted CPP, EI, PPIP or income tax, or gave a current employee taxable group term life insurance. If none of those apply, that employee doesn’t need a T4 slip.

What happens if an employee doesn’t receive their T4 slip?

If a slip is returned to you, keep it in the employee’s file with a note on how you tried to find the right address. Once you’ve filed your T4 return, the employee can also get the slip from the CRA.

How do I handle T4 slips for employees who left during the year?

Issue their T4 slip by the usual deadline, either by mail to their last known address or by email with written consent. For a deceased employee, report amounts on the slip for the year they apply to, using CRA guidance on payments after death.

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

A T4 reports employment income and the payroll deductions you took. Payers issue a T4A (Statement of Pension, Retirement, Annuity, and Other Income) for pensions, lump-sum payments, some fees for services and other amounts.

How long should employers keep copies of T4 records?

Keep T4 records for six years from the end of the last tax year they relate to, unless the CRA lets you destroy them early. For example, keep your 2026 T4 records until the end of 2032.