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T4 and T4 Summary Report 101

Overview

A T4 (Statement of Remuneration Paid) slip is the end-of-year form you give to each employee and submit to Canada Revenue Agency. The form shows the employee's wages and taxes withheld for the calendar year. 

  • In January or February, you need to create T4 slips for your employees and the CRA. Employees should receive a T4 slip for each province or territory they worked in for your company. (Note: In Québec, you also need to create Relevé 1 slips for your employees and Revenu Québec. for more information, please see RL-1 and RL-1 Summary Report 101)
  • The deadline for e-filing T4s is the last day of February. 

QuickBooks Desktop can create and print T4 slips for you. It can also create a T4 Summary report to help you fill out the T4 Summary form for the CRA. 

Important: If you are uncertain about how to report a specific benefit or amount on the T4 slip, consult your accountant or the CRA.   You must create a T4 slip for each employee who worked for you at any time during the year.

Adjust amounts on T4 slips

If QuickBooks has correct and complete pay cheque detail, you probably do not need to make any adjustments to your employees' T4 slips. T4 adjustments affect both the T4 slips and the T4 Summary Report. They do not affect the employees' pay cheques or your PD7A or Québec Remittance (TPZ-1015) reports.

  1. Display the T4 slip slip to be changed, by going to the Employees menu, selecting Payroll Forms, and then selecting Process T4s.
  2. Select an employee and click Review T4
  3. Enter the adjustment.
    • If you need to correct an amount in a box, double-click the amount and enter an adjustment in the Adjustments window.
    • If you need to correct employee information, click Cancel, and then open the Edit Employee window and make the change.
    • If you need to correct employer information, click Cancel, and then open the Company Information window and make the change.
  4. Click OK to save your adjustment. QuickBooks saves the adjustment for this employee for this tax year even if you make changes to your payroll data later.
Review T4 Slips for completeness

Before you can print your T4 slips, you must review them. If you notice that anything is missing or if you need to adjust for something you don't track on pay cheques, you can edit the fields on the form. 

  1. From the Employees menu, choose Payroll Forms, then Process T4s.
  2. Make sure the correct year is selected.
  3. Select the employees whose T4 slips you plan to review now..
  4. Click Review T4.
  5. Examine the information displayed on the first employee's slip. To adjust the slip, do one of the following:
    • To correct an amount in a box, double-click the amount. Then enter an adjustment in the Adjustments window. Enter all dollar values with no comma separating thousands from hundreds, but with a decimal point and cents (e.g. 12500.00 not $12,500). If the adjustment is a negative amount, enter a minus sign before the amount. Note: Adjustments to a slip only affect that slip and its summary report (T4 Summary or Relevé 1 Summary). They do not affect PD7A reports, Québec Remittance reports, or the employee's pay cheques. If the total on a T4 or Relevé 1 Summary form does not match the amount reported to the CRA through PD7A or TPZ-1015 forms, the CRA may ask for additional information. 
    • To correct the employee's name, address, or SIN, click Cancel. Then open the employee's profile in the Employee List and make the change.
    • To correct the employer's name, address, or Business Number, click Cancel. Then open the Company Information window (Company > My Company > edit icon at top right) and make the change.
  6. Click Next to approve the employee's T4 slip (with changes, if any).
  7. Repeat Steps 5 and 6 to review the T4 slips for the other employees you marked. On the last T4 slip, click OK.
Test printing alignment for T4 slips

If you have a page-oriented printer, QuickBooks prints T4 slips on blank paper, so you do not need to use pre-printed blank forms.

However, if you have a continuous (dot matrix) printer or prefer to use pre-printed forms, you should test how your printer handles them. If the printed text does not align correctly with the boxes on the form, you can make adjustments. QuickBooks remembers the adjustments and applies them again whenever you print year-end slips.

Tip: Don't worry if you can't get the alignment absolutely perfect. The forms are acceptable even if the numbers are not completely inside the boxes.

  1. Load some blank T4 forms into your printer.
    • You can print on preprinted T4 slips provided by CRA or print T4 slips on blank paper from within QuickBooks. The T4 slips printed by QuickBooks are approved by CRA. 
    • Tip: For a rough test, print on blank sheets of paper instead and hold them up to the light in front of a form to test the alignment. When you think the alignment is correct, load blank forms into the printer.
  2. From the File menu, choose Printer Setup and then choose either T4 or Relevé 1 from the Form Name drop-down list.
  3. Click Preview, and then click Print in the Print Preview window. Click Close to close the window.
  4. Examine the printed sample. If the sample did not print correctly, click Align to enter an alignment adjustment.
    • If the text is out of position when you print cheques, sales forms, purchase orders, labels, tax forms, or statements, you can adjust the alignment of the text so that it prints correctly.
    • To do this task
      • Determine which printer type you need to adjust:
        • For a continuous-feed printer, start with coarse adjustments.
          1. Open the Printer Setup window, if it isn't open already.
          2. Click the Form Name drop-down arrow and select the type of form you want to print.
          3. Click the Align button.
          • (For business forms only) Select the template you want to use for alignment and click OK.
          1. Click Coarse, and then click OK to print a sample form.
          2. Look at the pointer line that QuickBooks printed across the middle of the sample, and note the number closest to the arrow points.
            • Enter this number in the Pointer Line Position field and click OK.
            • If necessary, QuickBooks advances the paper and prints another sample.
          3. If QuickBooks printed another sample, enter the new pointer line position from the sample and click OK.
            • Important: If QuickBooks prints a third sample when you click OK, something has gone wrong. Check your printer settings and make sure you aren't adjusting the printer manually.
          4. Note the correct position of the form for future positioning.
          5. Click Fine to make further adjustments. Otherwise, click Cancel and continue printing.
        • For a page-oriented printer, use only fine adjustments.
          • A page-oriented printer prints on separate pages of paper fed from a paper tray. Most laser printers and ink jet printers are page-oriented printers. A few dot matrix printers are also page-oriented printers.
            1. Open the Printer Setup window (File > Printer Setup), if it isn't open already.
            2. Click the Form Name drop-down arrow and select the type of form you want to print.
            3. Click the Align button.
            4. (For business forms only) Select the template you want to use for alignment and click OK.
              • (For cheques only) In the Align Cheques window, select the number of cheques you're printing
            5. Click Print Sample.
            6. Check the alignment grid that QuickBooks printed on the sample to estimate how far to move the text.
            7. In the Vertical and Horizontal fields, enter a number for how much and in what direction to move the printed text.
            8. When the alignment is the way you want it to be, click OK.
Print T4 Slips

If you have a page-oriented printer, you can print T4 slips directly from QuickBooks. You can print on preprinted T4 slips provided by CRA or on blank paper. The T4 slips printed by QuickBooks are approved by CRA.  

  1. Go to the Employees menu and choose Payroll Forms, then Process T4s.
  2. In the Process End Of Year Forms window, make sure that the correct employees are selected and that the correct payroll year is showing.
  3. If needed, click the Form drop-down arrow and select T4.
  4. If you have not already reviewed the slips, you must review the T4 slips before you can print them.
  5. Click Print.
  6. Distribute the printed slips. Usually, the employee receives two copies. If you printed slips for the CRA instead of E-Filing them, the CRA receives one slip.
Print or email T4 slips when an employee has more than six codes
  1. Print or email all your T4 slips for all your employees as you normally would.
  2. Print your T4 Summary report.
    • ImportantTo print or email the extra codes, you need to change the employee's year-end slip. These changes will temporarily make your summary inaccurate. You should therefore print it now.
  3. Return to the Process End Of Year Forms window. (From the Employees menu, choose Payroll Forms, then Process T4s.)
  4. Select the employee who needs a second year-end slip showing only the extra codes.
  5. Click Review.
  6. Zero out all the numbers except the codes you want to print or email.
    • To zero out a number, double-click it. When the Adjust Amount window appears, enter the number again with a "-" sign in front of it (for example, if the amount is "560", enter "-560").
    • ImportantThe codes you are printing or emailing have already been included in QuickBooks calculations on the first year-end slip you printed. You should therefore zero out all the other boxes, even if the codes you are entering seem to affect them.
  7. Print or email the second T4 slip.
  8. Return to the End of Year Forms window again.
  9. Select the employee who needed the second year-end slip showing the extra codes.
  10. Click Review.
  11. Restore all the original numbers on the employee's year-end slip.
    • To restore the original number, double-click the box. When the Adjust Amount window appears, remove the negative number from the box (leaving it blank). If you forget which boxes to restore, refer to the employee's first year-end slip.
    • Important: If you do not restore the original numbers, your year-end summary will be inaccurate.
EFILE T4 Slips for the CRA

To obtain a Web Access Code for electronic T4 filing, contact the Canada Revenue Agency (CRA).

When you activate the 'EFILE T4s' service, QuickBooks checks to see if you have MSXML 6.0 installed on your system. If you do not, you are taken to a Webpage that asks you to download an installation of MSXML 6.0. If you do not install the package at this time, you will be prompted again to install MSXML 6.0 when you press the EFILE button on the Process T4s window. Follow the steps laid out on the MSXML 6.0 installation page. When MSXML 6.0 has been installed, click 'EFILE T4' to continue electronically filing your T4s

Note: To file T4 slips using CRA EFILE, your Business Number must be entered in the Company Information window.

  1. In the Process End Of Year Forms window, confirm that all employees whose slips you want to electronically file are selected.
  2. Note: If you are filing more than 50 T4 slips, you must electronically file using the CRA EFILE service through QuickBooks or directly through the CRA website. The CRA will no longer accept submissions of more than 50 slips in any other format.
  3. Review each slip.
  4. Click EFILE.
  5. Fill in the EFILE window:
    • Enter your transmitter number in the Transmitter Number field.
    • If your company is a sole proprietorship or partnership, enter your and your partner's SIN numbers.
  6. Click Send.
    • QuickBooks compiles an .xml file containing your T4 data. This file has the name '_T4Slips.xml' and, by default, is stored in your QuickBooks directory until it is sent or you close QuickBooks, when it is deleted.
  7. QuickBooks opens the CRA Web site for you. You will need to enter the path to the _T4Slips.xml file, your Business Number, and your Web Access Code. 
Create a T4 Summary report to summarize the T4 slips for your T4 Summary form

After you print your T4 slips, you also need to create a T4 Summary report to summarize the individual T4 slips. Use this report to fill out your T4 Summary form for the CRA. You can get the T4 Summary form by visiting the CRA website at http://www.cra-arc.gc.ca/

Tip: If you sent your employees' T4 slips to the CRA through the Internet (using EFILE), you do not need to create a T4 Summary form.

QuickBooks calculates the amounts for the T4 Summary report by adding up the amounts on all of the T4 slips. Unlike the T4 slips, you cannot edit the T4 Summary report.

  1. To obtain an accurate T4 Summary report, you must first review and print your T4 slips.
  2. From the Reports menu, select Employees & Payroll, then T4 Summary.
  3. Change the dates to show the correct payroll reporting period.
  4. Click OK to generate the report.
  5. Use the figures on the report to fill in your T4 Summary form.
Cancel T4 Slips
In the Process End of Year Forms window,
  1. Make sure that the correct form and year are displayed and click cancelled as the type of form you would like to generate.
  2. Select the employees whose T4 slips you would like to cancel.
  3. Click Review.
  4. When you have finished reviewing each slip, click Next to move on to the next employee's slip, or ok to return to the Process End of Year Forms window.
You will need to send a copy of each cancelled form to your employee and the CRA. You can either email the slips to your employee and EFILE with the CRA, or print the slips to send and submit manually.
Email amended or cancelled T4 slips
To email amended or cancelled T4 slips through QuickBooks
 
Note: Before you email tax slips, you must have each employee's documented consent. Consent from your employees must be written or electronically written. For more information on the legal requirements for emailing employee tax slips, consult the CRA or Revenu Québec.
  1. Open the Process End of Year Forms window by accessing the Payroll Centre from the Employees menu, then selecting the File Forms tab. 
  2. Make sure that the correct year and form are selected.
  3. Select amended or cancelled as the type of form you would like to generate.
  4. Select the employees whose slips you wish to amend or cancel send.
  5. Review each employee's slip and enter any necessary adjustments.
  6. Click Email.
  7. Note: For tax slips with more than 6 special boxes, only the first 6 boxes will be included.
  8. Review the email and make any desired changes to the text.
  9. Click Send.
Note: If you don't need to email your tax slips yet, click close. You can email slips later from the Select Forms to Send window.
  1. The tax slips are sent to your email program (Outlook, Outlook Express, or Windows Mail). Open your email program and click Send/Receive to email the slips to your employees.
For the PDF file
QuickBooks sends each tax slip as a password-protected PDF file. The PDF password for each employee is made up of the first 3 letters of the employee’s last name followed by the date of birth (DOB) in the MMDDYYYY format. If the last name is shorter than three characters, use the whole last name (do not append the first name to it). For more information, please see password requirements when emailing paystubs, T4s & RL-1s in QuickBooks
 
For the .ATF file
Original and amended tax slips are also sent as encrypted ATF files. Employees can upload the ATF file attachments to Intuit TurboTax for at-home tax filing. The password for opening the ATF file is made up of first 3 letters of the employee’s last name followed by last 3 digits of the employee’s Social Insurance number (SIN).
 
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