T4 – Statement of Remuneration Paid

Enter employment income before deductions as shown in box 14 of the T4 slip. The program always assumes that the amount in box A of the RL-1 slip is identical. Where this amount differs, enter it in box A of the RL-1 slip. For example, this happens when there is a taxable benefit with regard to a private health insurance plan for Québec purposes. You can enter “zero” as a Québec employment income (box A), while retaining the desired federal employment income in box 14 or the T4 slip.  

The amount in box 20 minus the total of the amounts of RPP Past Services after 1989, and before 1990 (boxes 74 and 75) corresponds to the contribution for current services. The program does not apply any limits with respect to the deduction for current services. The contributions made to an RPP Current Services that may be deducted in the Québec return must equal the amount deducted in the federal return.

Enter the income tax deducted appearing on a RL-1 slip for a taxpayer who is not a resident of Québec but has employment income earned in Québec. This amount will then be accumulated with the federal tax deducted appearing on the T4 when calculating the federal tax return.

When the employer is in Canada but outside Québec, enter an "x" so that the program will calculate the transfer of deductions on line 43800 of the federal return.

Enter the amounts appearing in box J and in box P of the RL-1 slip.

The amounts entered in box J of the RL-1 slip and in box B of the RL-22 slip are considered to be medical expenses for Québec tax return only.

Amounts appearing in box P of the RL-1 slip and in box A of the RL-22 slip allow the program to calculate the correction of employment income for Québec purposes. The program calculates the difference between these two amounts and posts the result (whether positive or negative) to line 105 of the Québec return.

Note: The amounts appearing in box A and in box B of the RL-22 must be entered on the RL- 22 slip (Jump Code: QR22).

Box 45, Employer-offered dental benefits, has been added to the T4 Slip Summary to indicate the employee's dental insurance status.

For 2023, box 45 might be empty in certain situations.

Box 45 is shown for information purposes only; it does not affect any calculations on the return.

For more information: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4-information-employers/t4-slip.html.

The program assumes that the insurable earnings for employment insurance purposes (box 24 of the slip) are identical to employment income (box 14 of the slip) up to the maximum insurable earnings. If the amount on the T4 differs from the default, override the amount. The program automatically calculates the contribution overpayment, if applicable, and posts the amount to line 45000 of the federal return.

In addition, employees who earn $2,000 or less in a taxation year may claim a refund of the employment insurance contributions in their federal return. Taxpayers whose income is between $2,000 and $2,032 ($2,025 for a Québec resident) are entitled to a decreasing refund. These refunds are also automatically calculated by the program and claimed in the federal return.

The program assumes that the CPP/QPP pensionable earnings (box 26 of the T4 slip) are identical to employment income (box 14 of the slip), up to the maximum allowed. If the amount on the T4 differs from the default, override the amount.

If the taxpayer turns 18 or 70 years of age in the year (based on the birth date in the Identification Form), the program will prorate these amounts. For QPP, the amounts are calculated on a prorate basis only if the taxpayer turned 18 in the year.

The program calculates the overpayment.

The program automatically calculates PPIP/QPIP insurable earnings when the province of employment (box 10 of the T4 slip) is Québec or when the province of residence is Québec and the employee’s PPIP/QPIP contributions are entered in box 55 of the T4 slip.

The PPIP insurable earnings (box 56 of the T4 slip) and QPIP (box I of the RL-1 slip) that are calculated by default in Taxprep are identical to the employment earnings (box A of the RL-1 slip) minus the amounts from boxes J and P of the RL-1 slip. When the amounts from boxes 56 of the T4 slip and I of the RL-1 slip are different from the amounts calculated by the program, override the boxes.

Certain taxable employment benefits included in box 14 may be eligible for special deductions: qualified employee stock option benefits.

Box 14 of the T4 slip generally only includes the taxable portion of the premium paid to volunteer firefighters and search and rescue volunteer, i.e. the amount in excess of the $1,000 exemption. However, for the calculation of the income earned used to determine the federal child care expense deduction and for the calculation of the work income used to determine amount for the Canada workers benefit (CWB), the non-taxable portion (exemption) of this benefit must be taken into account. This amount is indicated in box 87 of the T4 slip.

The worksheet T1 Lines 31220 and 31240 (Jump Code: J31220/31240) allows for the calculation of the volunteer firefighters' amount or the search and rescue volunteers' amount. Only one of these amounts can be claimed by a taxpayer. The former can claim an amount of $3,000 if he meets the conditions giving rise to either one of these credits. However, the taxpayer is not eligible for this amount if they are claiming the exemption indicated on line 87 of the T4 slip. If the taxpayer elects to claim the volunteer firefighters' amount or the search and rescue volunteers' amount (election selected by default by the program), the exemption amount indicated on line 87 of the T4 slip will be included in the employment income on line 10100 of the T1 return.

This deduction may be claimed by members of the Canadian Forces and Canadian police services who were deployed outside Canada. The deduction corresponds to the employment income received during the course of international missions and is shown in box 43 of the T4 slip.