Have you distributed T4 slips to your employees yet?

It’s that time of year again; T4 Season!  2024 T4 slips are due to be handed out to employees by February 28, 2025.  The penalty for failing to distribute T4 slips to recipients is $25 per day for each such failure, with a minimum penalty of $100 and a maximum of $2,500.

There are a few ways to distribute the slips to your employees:

• Secured Portal – You may make the slips accessible to employees on a secured portal
• Email – With written consent from the employee, you can distribute the T4 slips using email
• Paper Format – Two copies of the slip can be provided in paper format to the employee in person or by mail

Quick Tips:

• If the T4 slip is returned as not deliverable, keep a copy with the employee’s file.
• Employee’s address not up to date? If you know you have the incorrect address, do not send the employee’s T4 slip to that address. Document why you did not send the copies and all the efforts you took to retrieve the correct address.
• If you are distributing the slips on paper, print the two T4 slips that you must give each employee on one sheet.
• For security purposes, do not print your payroll program account number (box 54) on the employee copies

• If your employees request the T4 slip on paper, you must give them paper T4 slips.

Your T4 slips also need to be filed with CRA by February 28, 2025.  If you have 50 or fewer slips you can file them on paper, however CRA strongly encourages electronic filing if possible.  If you have more than 50 slips to file, you must file them electronically. There are a couple of ways to do this:

• Web Forms – You can file up to 100 slips using Web Forms. You will then enter the data for each slip directly on CRA’s website.
• Internet File Transfer (XML) – If you use commercial or in-house developed payroll software you can usually create an XML file that can be uploaded to CRA

To submit this information electronically to CRA you can either use your Business Number with a Web Access Code (WAC) or you can log on to you My Business Account.  If you don’t have your WAC you can obtain one through CRA using this link.

Your accountant can also assist with filing the slips electronically using their Represent a Client portal.

The penalty for filing these returns late can be even more costly than failure to distribute. See the chart below for more applicable penalties.