T4 Filing Guide

Year End Compliance

Transmitter Setup

  1. Transmitter must be setup before T4 Summary is generated. Transmitter is not imported from SimplePay.
  2. To create a Transmitter, go to Manage > Setup
  3. Transmitter No: This is either provided by CRA to you, OR you can use the default transmitter # MM555555

Adjustment Options

CPP/QPP Adjustments

  1. Only one option can be selected i.e A or B
  2. Option A – Adjust CPP/QPP if over maximum/under minimum
    1. CPP will be calculated within the range where the maximum CPP is the lesser of:(
      CPP Pensionable Earnings x 4.95% (5.40% for QPP))
      OR
      Maximum employee contribution of $2,564.10 ($2,797.20 for QPP)
    2. And the minimum CPP is the lesser of:
      ((CPP Pensionable Earnings – $3,500.00) x 4.95% % (5.40% for QPP))
      OR
      Maximum employee contribution of $2,564.10 ($2,797.20 for QPP)
  3. Option B – Adjust CPP/QPP based on number of pensionable Pay Periods
    1. CPP will be calculated as:
      (CPP Pensionable Earnings – Prorated Deduction) x 4.95%
    2. QPP will be calculated as:
      (QPP Pensionable Earnings – Prorated Deduction) x 5.40%
    3. The prorated deduction will be calculated as:
      (Number of pensionable Periods / maximum number of pensionable Periods) x $3,500.00M

Useful Tip:

  • CPP/QPP discrepancies are adjusted to and from tax deducted as necessary. Option B is the default CPP/QPP adjustment option
  • Pensionable periods are entered in each employee’s T4 slip
  • Maximum number of pensionable periods are calculated from Pay Period type selected in Employee setup
  • Example, in employee setup Pay period is selected as 12-Monthly, In T4 Slips, Pensionable Periods are selected as 10, Prorated deduction will be (10/ 12 * 3500) i.e. 2916.67 Instead of 3500

E.I Adjustments

  1. Option A – Adjust EI premiums if over annual maximum (select alone or with option B or C)
    1. If this option is selected, the EI will only be adjusted if it is greater than:
      (EI Insurable Earnings x 1.63% (1.27% in Québec))
      OR
      ($836.19 ($651.51 in Québec))
  2. Option B – Adjust EI premiums based on Insurable Earnings (select only one of options B and C)
  3. If this option is selected, the EI will be calculated as:
    EI Insurable Earnings x 1.63% (1.27% in Québec)
  4. Option C – Adjust insurable earnings based on EI premiums (select only one of options B and C)
    1. This option assumes the entered amount for EI deducted is correct. When this option is selected, EI insurable earnings will be calculated as the minimum of:
      (EI Deducted / 1.63% (1.27% in Québec)) Maximum $51300

Useful Tip:

EI discrepancies are adjusted to and from tax deducted. Options A and B are the defaults.

Transfer Over-Remittance

  1. Transfer employer’s over remittance to selected Employee(s)
  2. When adjustments reduce total deductions for the company, the employer’s portion of the over-remittance may be transferred to the tax of an owner or shareholder.
  3. You can select single/ multiple employees from drop list, any net overpayment of CPP/QPP, EI and PPIP/QPIP resulting from adjustments calculated by the program will be credited to the tax deducted on the T4 of the selected employee(s).

T4 Adjustments

  1. After Adjustment settings have been set, and T4 data is complete, you can adjust T4 data from following options:
    1. On Individual Slips
      1. Apply adjustment button is available in each slip, you can switch it on to apply adjustment on the particular slip and then save the slip data
    2. Bulk Adjustment
      1. Apply adjustment on all employees for T4 Slips in company
      2. Go to Adjustment > Adjustments and press Adjust Slips button in T4 Adjustment Panel
      3. When all slips are adjusted, you can Transfer the over remittance to employee selected in adjustment options screen
    3. You can view details of T4 Adjustment from reports i.e. Adjustment > T4 Report
    4. You can un-adjust slips individually or in bulk same as adjusting slips

Useful Tip:

Once over remittance is transferred to selected employee, you cannot update T4 data, to do that, you have to un-transfer over remittance

T4 XML Filing

  1. Make sure all your T4 data is complete and all the adjustments have been done.
  2. Go to T4 Summary i.e. Compliance > T4 > Summary.
  3. Select Transmitter, Issuer and Contact person.
  4. If Transmitter, Issuer and Contact person are not available in drop list, you can setup them in Manage > Setup
    You can copy information for Contact Person to Issuer and from Issuer to Transmitter
  5. If you are a 1st time remitter , use default Transmitter # already populated. Otherwise Transmitter # is provided by CRA please get in touch with them to get it.
  6. Unmask sensitive information from Unmask link.
  7. Press Generate XML button, it will download XML file, please save the file.
  1. Submit your file to CRA on following link.
https://apps.cra-arc.gc.ca/ebci/leb0/upload/pub/entry-e.do

T4 Paper Filing

  1. Make sure all your T4 data is complete and all the adjustments have been done.
  2. Go to T4 Summary i.e. Compliance > T4 > Summary.
  3. Select Issuer and Contact person.
  4. If Issuer and Contact person are not available in drop list, you can setup them in Manage > Setup  You can copy information for Contact Person to Issuer and from Issuer to Transmitter
  5. Unmask sensitive information from  Unmask link
  6. Press Print PDF button, it will print T4 Summary in PDF.
  7. Mail T4 Summary and T4 Slips to CRA.
    • Ottawa Technology Centre
    • Canada Revenue Agency
    • 875 Heron Road
    • Ottawa ON K1A 1G9
  1. Submit your file to CRA on following link.

Distributing T4 Slips to Employees

  1. To print T4 Slips, go to Compliance > T4 > List.
  2. Click on row to select employee(s), and press Print T4 button, you can print CRA, Employer and Employee copy.
  1. Please make sure pop ups on your browser are enabled to print T4 Slips.
  2. You can send employees, their T4 copies through email, i.e. select employee record from list and press Email button.
  1. Mail T4 Summary and T4 Slips to CRA:
  • Ottawa Technology Centre
  • Canada Revenue Agency
  • 875 Heron Road
  • Ottawa ON K1A 1G9