T4 Slip

The T4 slip reports employment income and payroll deductions for use on the personal return.

Definition

A T4 slip is the Statement of Remuneration Paid, the main Canadian slip used to report employment income and related payroll amounts.

Why It Matters

For many taxpayers, the T4 is the most important tax document of the year because it ties wages, payroll deductions, and employment reporting together in one place.

How It Works in Canada

A T4 generally reports employment income paid by an employer along with related amounts such as income tax deducted, CPP contributions, and EI premiums. It feeds directly into the personal return and also reflects the payroll-reporting side of the employer’s obligations.

That is why the T4 sits at the intersection of two workflows:

  • employee filing
  • employer payroll reporting

Some T4 boxes are especially important because they connect directly to the taxpayer’s filing workflow:

Common T4 boxWhat it usually reportsWhy it matters on the return
Box 14Employment incomeThis is the core employment-income amount for the year
Box 22Income tax deductedThis helps determine the credit for tax already withheld
Boxes 16 and 17CPP/QPP contributionsThese feed the CPP/QPP contribution calculation and claim
Box 18EI premiumsThis supports the EI premium claim and overpayment check
Box 44Union duesThis can point to a deduction claim on the return
Box 45Employer-offered dental benefits codeThis supports Canadian Dental Care Plan administration and is not entered as income

The CRA’s individual T4 instructions also make clear that a T4 is not just about gross wages. It carries payroll deduction information and several boxes that point to later lines, schedules, or worksheets on the return.

Practical Example

A salaried employee may use the T4 slip to confirm employment income and payroll deductions before filing the T1 return. If the amounts are wrong, the issue may need to be corrected before or during filing.

Common Misunderstandings

A T4 slip is not the return itself.

It is also not used for every type of income. Other slips, such as T4A or T5, may apply when the payment type is different.

In Quebec-sensitive situations, it is also important not to collapse the T4 into the Releve 1 Slip. They can be related without being the same document.

It is also not only an “income” slip. Several T4 boxes describe deductions, pension adjustments, or employer-reporting details that affect other parts of the tax workflow.

Knowledge Check

  1. Why is the T4 closely connected to payroll tax terms? Answer: Because it reports employment income together with payroll deductions such as income tax, CPP, and EI amounts.

  2. Does every tax slip reporting payment from work have to be a T4? Answer: No. Other income situations can use different slips, such as a T4A.

Caveat

Special boxes, employer corrections, and province-sensitive payroll details can create exceptions, so disputed or unusual T4 reporting should be checked against the current CRA instructions.

Revised on Friday, April 24, 2026