Have your T4 slips arrived yet?
By James Foskett | Feb-28-2011 | Blog, General Tax
Though many people choose to procrastinate about their tax return, there are those who are just waiting for their slips to come in so they can file their return. It is usually the people who are expecting a refund. And one of the biggest slips everyone waits for is the T4.
Its official name is the Statement of Remuneration Paid. It outlines your gross salary amount as well as the income tax deducted during the year. There are also boxes for items such as union dues, charitable donations made through payroll deductions, and EI insurable premiums and pensionable earnings.
There is a great deal of information on one slip and it is important that you capture it all when you complete your tax return. Do not attempt to complete your return unless you have all your T4s for 2010. Employers are required to register T4s with the Canada Revenue Agency so there is a record. And you can’t just claim it on your 2011 return next year. The T4 has to be used in the right tax year.
If your company went bankrupt last year, you should receive a T4 from the trustee. If your employer fails to provide you with a T4 in time to file your taxes, you can use your last paycheque receipt from 2010. But this is not ideal.
Income can be reported on a number of different T slips. You receive a T4A if you have pension, retirement, annuity or other income. If you are receiving Old Age Security, you will receive a T4A(OAS), while a T4A(P) is for Canada Pension Plan Benefits. For Canadians receiving employment insurance last year, you will receive a T4E. And if you withdrew money from your RRSP in 2010, there will be a T4RSP.
Reporting all your income is a requirement of filing your tax return. If the CRA finds that you failed to declare your income on your tax return, you could be facing penalties and interest. So wait for your slips to come in before you file.