The final result of any payroll system is the production of the T4 Supplementary slips, and T4 Summary, which is required by every employer on an annual basis. A T4 Supplementary slip is prepared for each employee, and indicates the earnings of the employee, as well as the amounts of those deductions that CRA takes an interest in ñ such as CPP, EI and income tax deductions. The T4 Summary simply totals the information in all of the T4 Supplementary slips for the employer, and reconciles the total deductions taken for the year to the total amount remitted to the CRA. Any difference becomes a balance owing by the employer, and will probably be subject to penalties and interest, as if payroll has been properly handled all year, there should not be a balance owing on the T4 Summary. A link to these forms is provided on the Knowledge Net for this chapter.
Regardless of the year end that the employer may have for financial statement purposes, the payroll has to be balanced and T4's have to be issued to employees, with copies provided to the CRA by February 28th of each year, for the previous calendar year.
What is required information for completing T4 slips and the T4 summary?