If you were employed during the year, you’ll receive a T4: Statement of Remuneration Paid slip from your employer. This slip shows the income you earned in the year as well as any deductions (such as income tax, CPP and EI contributions, union dues, etc.). If you worked at more than one job, you’ll receive a separate T4 from each of your employers.
Note: For tax years 2017 and onwards, employers can send current and active employees their T4 slips electronically without obtaining prior consent from them. Refer to the 2017 federal budget for more information.
If you’re a resident of Québec, you’ll also get an RL-1: Employment and other income slip from your employer that reports your Québec-based income as well as any amounts deducted from that income. Like the T4, you’ll receive a separate RL-1 slip from each employer you had during the year.
I have an amount in box 52 of my T4 slip – what are the tax implications?
If you have an amount showing in box 52 (pension adjustment) of your T4 slip, it won’t affect your refund amount or tax owing, but it will reduce your RRSP deduction limit for the following year.
Your T4 will contain a pension adjustment amount in box 52 if you belong to a company-sponsored registered pension plan (RPP) or to a deferred profit-sharing plan (DPSP). A pension adjustment helps to even the playing field between employees who belong to an employer-sponsored plan and those who don’t.
Let’s take a look at an example for two taxpayers who both earned $50,000 in 2016.
Jason doesn’t belong to an RPP. Given his income in 2016, he’s entitled to contribute $9,000 to his RRSP in 2017 ($50,000 x 18%).
Natalie belongs to an employer-sponsored plan. During 2016, her employer made regular contributions to the registered pension plan on her behalf for a total amount of $1,250. This means her T4 will show a pension adjustment amount of $1,250 and she’ll be entitled to contribute $7,750 to her RRSP in 2017 [($50,000 x 18%) - $1,250].
When I NETFILE my return, do I have to send a copy of my T4 to the Canada Revenue Agency (CRA)?
No. When you NETFILE your taxes, you don’t need to send any slips (or copies of slips) to the CRA or Revenu Québec. You should, however, hang on to these documents and other tax-related information for at least six years after you file, in case either agency asks to see them.
Where do I enter this?
Follow these steps in H&R Block’s 2017 tax software:
- Under the QUICK ENTRY tab, click the QUICK SLIP icon. You'll find yourself here:
- Enter T4 in the search field then click the highlighted selection or press Enter to continue.
- When you arrive at the page for your T4, enter your information into the tax software.
Note: If you also received an RL-1 slip from your employer(s), follow the steps above to enter your information into the tax software.