File T4 Slips by February 28

Your T4 Summary and individual T4 slips must be filed with CRA by the last day of February following the calendar year. Late T4 preparation triggers penalties of $100 per day up to $7,500 for each failure. We complete all T4 preparation well before the deadline so your corporation never faces this avoidable penalty.

Issue T4A Slips for Contractors

If your corporation paid subcontractors, freelancers, or commission agents more than $500 in a calendar year, CRA requires a T4A slip for each payee. Missing T4A preparation results in $25 per day per slip in late-filing penalties. We track all contractor payments throughout the year so T4A preparation is seamless at year-end.

Prepare T5 Slips for Dividend Recipients

When your corporation pays dividends to shareholders, a T5 slip must be prepared and filed with CRA by the last day of February. T5 preparation must distinguish between eligible and non-eligible dividends because the gross-up and tax credit rates differ. Incorrect T5 preparation causes shareholders to overpay or underpay personal tax on dividend income.

Report Taxable Benefits on T4 Slips

Company vehicles, employer-paid group insurance, parking, and employee loans must be included as taxable benefits during T4 preparation. CRA auditors review T4 slips specifically for missing taxable benefit amounts and reassess both employer and employee when omissions are found. Accurate T4 preparation of all benefits avoids these costly reassessments.

Reconcile T4 Summary to Payroll Records

Your T4 Summary total must match the cumulative remittances reported on your PD7A statements for the calendar year. Discrepancies between your T4 preparation totals and CRA's trust account records trigger compliance reviews and additional penalty assessments. We reconcile every dollar before completing T4 preparation to eliminate mismatches.

Verify SINs Before T4 and T4A Filing

CRA rejects T4 and T4A slips with invalid or missing Social Insurance Numbers, creating re-filing delays and potential penalties. Verifying every employee and contractor SIN during T4 and T4A preparation — not after CRA sends an error notice — prevents rejected submissions and keeps your year-end T4 preparation on schedule.

Classify Eligible vs Non-Eligible Dividends on T5

Your T5 preparation must correctly report dividends in Box 24 for eligible dividends or Box 10 for non-eligible dividends. Misclassifying dividend types during T5 preparation directly affects the shareholder's personal tax credit calculation. Incorrect T5 classification can cost your shareholders hundreds or thousands in personal tax they should not owe.

Amend Prior-Year Slips Promptly

If you discover errors in previously filed T4, T4A, or T5 slips, file amended slips with CRA as soon as possible. CRA charges compound interest on any resulting tax shortfall from the original filing date. Prompt T4, T4A, or T5 amendment during preparation review stops interest from accumulating on incorrect amounts.

File Electronically When Required

CRA mandates electronic filing of T4, T4A, and T5 information returns when you prepare more than 5 slips. Paper filing above this threshold during T4, T4A, or T5 preparation results in a $100 penalty per slip. We file all T4, T4A, and T5 slips electronically through CRA's internet filing service regardless of volume.

Coordinate T4 and T5 With T2 Filing

Your T4 preparation determines the salary deduction claimed on Schedule 1 of your T2 return, and your T5 preparation must match the dividend declared in your corporate records. Mismatches between T4 or T5 slips and the T2 corporate tax return are a common CRA audit trigger. We cross-reference every slip against your T2 before filing.