What is T4 Statement?
Canadian employer-issued slip reporting employment income and deductions, similar to the US W-2.
Definition
The T4 Statement of Remuneration Paid is a Canadian tax slip issued by employers to employees, reporting employment income, CPP contributions, EI premiums, and income tax deducted during the year. It is the Canadian equivalent of the US W-2 form. For cross-border taxpayers, T4 income must be reported on both the Canadian T1 and US Form 1040.
Who Needs to Know This?
Canadian employees who received employment income during the tax year. US citizens working in Canada will use T4 information for both Canadian and US filings.
Key Deadline
Employers must issue T4s by the last day of February
Potential Penalties
For employers: penalties for late or incorrect T4 issuance
Related Forms
Common Mistakes to Avoid
- 1Not converting T4 amounts to USD for US tax reporting
- 2Forgetting to report T4 income on US return
- 3Not understanding CPP and EI deductions on the T4
- 4Missing T4 slips from multiple employers
Related Terms
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