Prepping the T’s for Tax Season

Time is ticking on T4/T4A season.  With the Friday, February 28 deadline fast approaching, are you procrastinating, preparing or already producing your T4 and T4A Information Returns?

What they are?
A T4 (Statement of Remuneration Paid) is employment income paid during a tax year and the amount of income tax that was deducted.  As well as salary, employment income can be bonuses, vacation pay, tips, honorariums, commissions, taxable allowances, the value of taxable benefits and payment in lieu of notice.

A T4A (Statement of Pension, Retirement, Annuity, and Other Income) is prepared and issued by an employer, a trustee, an estate executor or liquidator, a pension administrator, or a corporate director on certain types of income paid and the amount of income tax that was deducted. It covers:
•    Pension or superannuation
•    Lump-sum payments
•    Self-employed commissions
•    Annuities
•    Retiring allowances
•    Patronage allocations
•    RESP accumulated income payments
•    RESP educational assistance payments
•    Payments under a wage-loss replacement plan
•    Other income, including death benefits, registered disability savings plan payments, research grants, scholarships, bursaries, fellowships, artists’ project grants and prizes

CRA Videos on Preparing T4 and T4A
Telpay does not calculate payroll or issue any T4 / T4A slips, we help accountants, bookkeepers or owners, by providing direct deposit to employees and submitting Canadian Revenue Agency (CRA) Remittances in a timely fashion.  To be prepared, we recommend this helpful link to the CRA website for their excellent series on Preparing T4 / T4A.   There are five segments broken into the following topics:

1) Slips and Summaries: This segment provides a general overview of an employer’s or payer’s payroll obligations, in particular the filing requirements for T4 and T4A information returns-slips and summaries.

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2) Completing T4/T4A Slips and Summaries: This segment provides general information to help employers or payers complete the T4 and T4A information slips and summaries.

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3)Methods of Filing: This segment contains information on the different methods of filing T4/T4A information returns.

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4)Filing Deadlines: This segment provides information on the filing deadlines for T4/T4A information returns.

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5) Penalties and interest: This segment provides information on the different types of penalties and interest associated with T4 and T4A information returns- slips and summaries.

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6) After you file information returns: This segment contains information on the CRA’s review processes once CRA receives an employer or payer’s T4 or T4A information return.

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7) Adjusting information returns: This segment provides employers or payers with different ways you can amend information you’ve previously submitted on a T4 and T4A information return.

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At Telpay, we encourage you to review the CRA Video Series to be ready to file T4/T4A Information Returns on the Friday, February 28th.