A T4 slip is an official Canadian tax document issued by employers to report the employment income and deductions of their employees for a specific tax year. It is formally known as the T4 Statement of Remuneration Paid and is essential for both employees and the Canada Revenue Agency (CRA) during the personal income tax filing process.

The T4 includes important information such as:

• Total employment income (Box 14)

• Income tax deducted (Box 22)

• Canada Pension Plan (CPP) contributions (Box 16)

• Employment Insurance (EI) premiums (Box 18)

• Employer-paid benefits, such as group insurance or pension contributions

Employers are legally required to issue T4 slips to their employees and submit copies to the CRA by the last day of February following the end of the calendar year. Employees receive their T4s by mail or electronically, and must include the information when filing their personal income tax return.

Missing or inaccurate T4 slips can delay tax refunds or result in penalties. Employees should always verify the information for accuracy.

In summary, the T4 is a critical document for reporting employment earnings and deductions, ensuring compliance with Canadian tax laws and accurate tax reporting.