How To Prepare A T4 Slip
A T4 slip includes your employment earnings and deductions for the calendar year. You can ask one from your employer if you do not have one by the end of February.
Here are the steps:
- To start there are some basic thing that need to be filled out, such as employers name, his account number (box 54), and SIN in box 12.
- Then you would need to fill out some basic things such as province of employment, and the year in which the employer received the salary.
- The next step would be to check if employees should contribute to EI.
- Shareholders do not have to pay EI if they own 40% of the voting stocks of the company.
- If employee is determined to contribute to EI, box 28’s second checkbox will remain blank.
- The first checkbox under box 28 labelled RPC/RRQ will not be checked if employee is contributing to the Canada Pension Plan
- Enter employee’s income earned in the calendar year in box 14
- Then enter amount of CPP contribution, which is the amount you deducted from the employees’ paycheck in the year
- The Employee and Employer Contribution Rate is 5.25% as of 2020
- Next in box 18 state total amount of EI premiums deducted from paycheck in the calendar year
- The Federal EI Premium rate, as of 2020, is 1.58%
- Box 22 should read how much Income tax was deducted
- Box 24 represents EI insurable earnings in which you need to enter the gross salary and wages (should be equal to the amount in box 14)
- Basically box 24 should read the same as box 14
Finally complete T4 summary
And congratulation you are done!
Muhammad Nasrullah,CPA, CGA, LPA
Chartered Professional Accountant
Licensed Public Accountant
206A – 2365 Finch Ave. West North York, ON. M9M 2W8
Tel: (1) 416-748-0817 ext 101 Fax:(1) 416-748-6814
www.nasrullahcga.com E-mail: firstname.lastname@example.org