T4/RL-1 - Employment Income

To prepare T4 and RL-1 slips,  enter your data in the combined screen entitled: "T4-RL-1 – Data entry screen."

There is one data entry screen per recipient. To add an employee, use the New button on the Multiple Copy toolbar.

Enter your data in the Federal column. When the “Select this box to transfer data to the RL-1 slip” box is checked, the program posts all the entries in the corresponding Québec box. (Note: This box is checked by default when the province of employment is Québec.)

If an amount is different for Québec purposes, click field in question and press F2. You can then override the line and enter a different amount than the one posted. A pen icon will be displayed to the right of the amount to indicate that an override was performed. To display the automatic calculation, press once again F2 while in the field.

The data that only applies for Québec purposes is entered in the appropriate boxes of the Québec RL-1 column.

Taxable Benefits and Other Entries

Boxes entitled "Other information" allow you to enter data pertaining to the employment commissions, taxable allowances and benefits, deductible amounts and all other applicable entries.

From the drop-down menu, select the applicable code. Then, enter the amount.

Note: The first of these boxes, entitled "Automobile benefits or other information," is used byTaxprep Forms to display the automobile benefit amount, if applicable.

See Also

Calculating the Automobile Benefit

Calculation of CPP/QPP contributions and EI premiums

The program calculates the employee’s CPP/QPP contributions in the following manner: based on the employment income in box 14, the program calculates the gains providing entitlement to a pension under the CPP/QPP without exceeding the applicable maximum, and displays them in box 26 of the entry screen. You can, however, modify the gains, if necessary. The program also calculates the normal contributions based on the gains in box 26 and the weeks of pensionable employment and displays them on the “Employee’s CPP/QPP contributions (deducted amount)” line.

Make sure that the box specifying the applicable public plan (CPP or QPP) that is checked is the appropriate one. By default, the program checks QPP if the province of employment is Québec and CPP in all other cases. The box may, however, be overridden. If an employee is exempted from paying the contribution, check the “CPP/QPP exemption” box.

If the amount you have withheld on employee’s pay cheques corresponds to the amount displayed by the program on the “Employee’s CPP/QPP contributions (deducted amount)” line, no additional entry is required. If this is not the case, override the calculated amount and enter the amount actually withheld.

Employment Insurance premiums are handled in a similar way. Thus, based on the employment income in box 14, the program calculates the insurable gains under the EI, without exceeding the applicable maximum, and displays them in box 24 of the entry screen. You can, however, modify them, if necessary. The program also calculates the regular premium based on the gains in box 24 and displays them on the “Employee’s EI premiums (deducted amount)” line. If an employee is exempted from paying the premium, check the “Exemption EI” box.

If the amount you have withheld on employee’s pay cheques corresponds to the amount displayed by the program on the “Employee’s EI premiums (deducted amount)” line, no additional entry is required. If this is not the case, override the calculated amount and enter the amount actually withheld.

CPP/QPP/EI/QPIP Adjustments

The program includes a mechanism to adjust the employee’s CPP/QPP contributions, EI and QPIP premiums in case of over or under contributions. To enable this function, access the T4/RL-1 Adjustments - Settings and Reconciliation  form and check "Yes" in reply to the question “Do you want to adjust CPP/QPP, EI and QPIP employee contributions?”. You can then limit the application of the adjustments to a maximum amount and specify if you want an adjustment of only the overcontributions or both the over and under contributions. You can also select the new setting Adjust contributions of more than the annual maximum or contributions of less than the calculated amount.

In the case of overcontributions, the adjustment consists in returning the contribution or premium to its normal level. The difference is added to the tax withheld (federal tax if dealing with the CPP or EI or Quebec tax if dealing with the QPP or QPIP). In the case of under contributions, the adjustment consists in using the income tax withheld to eliminate the deficit, and return the contribution to its normal level. In this respect, you can indicate if you want or do not want there to be an adjustment when the tax withheld is insufficient to make up the difference, and specify the maximum amount to claim from tax withheld.

The result of the adjustments for each employee appears on the T4/RL-1 data entry screen. It also prints with the T4 List form and in the new T4/RL-1 Adjustment Report.

Note: The adjustment mechanism is not approved by the Canada Revenue Agency or by Revenu Québec.

Viewing the slips

In order to view the slips prepared before printing, access the "T4 - Statement of remuneration paid" or "RL-1 - Employment and other income" screen. If after this verification it is necessary to modify the information, return to the data entry screen.

Adding or deleting slips from a carried forward file

Once your files from last year have been carried forward, access the Slip Manager dialog box from the Forms/Slip menu. You can add or delete a slip in this dialog box.

See Also

T4 slip - Statement of Remuneration Paid

RL-1 slip - Employment and Other Income

Province and State Two-Letter Codes

Taxable benefits Guide