CCH iFirm Tax Forms 2019 v.5.0 (2020.20.28.02)

T4 - Remuneration and Benefits

Use the "Remuneration and benefits" line to enter the salary paid to the employee and the taxable benefits that the employee received during the taxation year, except for the Automobile Benefit, which is calculated in box 34.

Report the total income before deductions. Include all salary, wages (including pay in lieu of termination notice), bonuses, vacation pay, tips and gratuities, honorariums, director’s fees, management fees, and executor’s and administrator’s fees received to administer an estate (as long as the administrator or executor does not act in this capacity in the regular course of business).

Note: Under proposed changes, a deduction from taxable income can be claimed for the amount of employment income earnings (including taxable allowance) to certain Canadian forces personnel and police. See the explanation under Code 43.

Director’s fees paid to a non-resident for services rendered in Canada must also be reported in box 14 of a T4 slip. See Chapter 5 of the publication called Payroll Deductions (Basic Information) (T4001) for details.

Include commissions, taxable allowances, the value of taxable benefits (including any GST/HST or other applicable taxes), and any other payments you paid to employees during the year.

Include amounts paid under a supplementary unemployment benefit (SUB) plan that do not qualify as a SUB plan under the Income Tax Act (such as employer-paid maternity, parental and compassionate care top-up amounts).

If you are in the forestry business and have employees who use their own power saws at their own expense, include rental payments you paid to employees for the use of their power saws. Do not reduce the amount by the cost or value of saws, parts, gasoline, or any other materials the employee supplies.

Include these in box 14, even if they appear separately in the “Other information” area of the slip. Also include payments out of an employee benefit plan (EBP) and amounts that a trustee allocated under an employee trust. If the trustee allocates the income, but you do not pay it immediately, include it in the income of the employee. Do not report it when you make the payment. For more information, see Interpretation Bulletin IT-502, Employee Benefit Plans and Employee Trusts, and its Special Release.