The T4 slip is the most important document you receive for your Canadian tax return. Every employer you worked for in 2024 sends you one, and it contains all the information you need to report your employment income and the deductions already made on your behalf. Here is a complete explanation of what every box means.
Box 14 is the total employment income your employer paid you during the year. This includes regular salary or wages, overtime pay, bonuses, commissions, and tips that went through payroll. This is the number you report as employment income on your tax return. It does not include self-employment income or amounts not paid through your employer.
Box 22 shows the total federal and provincial income tax your employer withheld from your paycheques throughout the year. This is a credit against the taxes you owe. If box 22 is larger than your total tax owing for the year, you receive a refund. If it is smaller, you owe the difference.
Box 16 shows Canada Pension Plan contributions deducted from your pay. If you are 18 to 70 years old and working, you contribute to CPP. These contributions earn you a federal and provincial tax credit worth approximately 15% of the amount, reducing your taxes slightly. The maximum CPP employee contribution in 2024 was $3,867.50 for CPP1 contributions.
Box 17 shows second additional CPP (CPP2) contributions that were introduced in 2024. These are additional contributions on employment income above the regular CPP maximum. CPP2 contributions also earn a tax credit. Not all employees will have an amount in this box.
Box 18 shows Employment Insurance premiums deducted from your pay. Like CPP contributions, EI premiums generate a federal tax credit. The maximum EI premium for employees in 2024 was $1,049.12.
If your employer has a registered pension plan or deferred profit sharing plan, box 52 shows the pension adjustment. This reduces your RRSP contribution room for the following year. You do not need to enter this on your return — the CRA uses it to calculate your available RRSP room, which appears in CRA My Account and on your Notice of Assessment.
Box 20 shows your contributions to your employer's Registered Pension Plan (RPP). These contributions are deductible from your income, just like RRSP contributions. Enter the box 20 amount on your return to claim this deduction.
If your employer provided housing, board, or lodging as a taxable benefit, the value appears in box 30. This is added to your employment income.
If you exercised employee stock options during the year, box 38 shows the taxable benefit. This is complex — consult the CRA or a tax professional if you have amounts here for the first time.
Box 40 catches various taxable employment benefits not covered by other boxes, such as the personal portion of a company vehicle, employer-paid gym memberships, or gifts exceeding the non-taxable threshold.
If you paid union dues, the amount is shown in box 44. Union dues are deductible from your income — enter them on your return to reduce your taxable income.
Some employers run workplace charitable giving programs and remit donations on your behalf. Box 46 shows the total donated this way. These donations are combined with any other charitable donations you made during the year to calculate your donation tax credit.
If you worked for more than one employer during the year, you receive a separate T4 from each. Enter all of them on your tax return. Your total employment income is the sum of all box 14 amounts. Your total tax withheld is the sum of all box 22 amounts.
Having multiple T4 slips sometimes results in over-withholding of CPP and EI premiums because each employer withholds based on your income with them alone, without knowing about your other jobs. The CRA calculates the actual amounts you owe based on your total income, and if you overpaid CPP or EI, you receive a credit or refund.
Contact your employer's payroll department if you believe your T4 contains an error. Employers must file an amended T4 with the CRA if there is a mistake. Do not alter the slip yourself. If your employer is unresponsive, contact the CRA directly.
If you have not received a T4 by mid-March, check CRA My Account first. Many slips are available digitally before the paper copies arrive. If the slip is not in your CRA account either, contact your employer. If you cannot reach a former employer, call the CRA at 1-800-959-8281 for guidance. You may be able to use a Record of Employment (ROE) or your own records to estimate income, but you should wait for the actual slip if possible.
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