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T4 and T4 Summary Report

Overview

T4 forms are the yearly forms, which report employee earnings and deductions. Manually preparing these forms can be a daunting task. Luckily, QuickBooks Desktop assists you in preparing T4 forms. This article will guide you through the steps.

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.

Preparing T4's

A T4 slip is the end-of-year form that you give to each employee and submit to the CRA— usually no later than the last day in February. T4s report the employee's wages and taxes withheld for the calendar year. 

Before you create T4 slips, check to make sure that you have correctly entered the employees’ name, address and Social Insurance Numbers. From the Reports menu, choose Employees & Payroll then select Employee Contact List

Review and Adjust T4 slips
  1. From the Employees menu, choose Payroll Forms, then Process T4s.
  2. Make sure the correct year is selected.
  3. Remember to also select any ex-employees who received pay cheques during the year;
  4. Select the employees whose T4 slips you plan to review now..
  5. Click Review T4.
  6. In the Employee T4 preview window, verify the accuracy of the displayed information. You can do so by comparing the T4 to the Payroll Summary report. 
  7. In the rare event that you need to adjust infromation on a T4 slips, 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.
      • 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. 
      • Note: Because the adjustments that you make could have an impact on applicable payroll taxes and remittances, consult with your accountant, Certified ProAdvisor or the CRA before making any adjustments to your employees’ T4s.
    • 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.
  8. Click Next to approve the employee's T4 slip (with changes, if any).
  9. Repeat Steps 5 and 6 to review the T4 slips for the other employees you marked. On the last T4 slip, click OK.
  10. QuickBooks Desktop returns to the Process End of Year Forms window and confirms that you verified all employee T4s by placing a checkmark in the Reviewed column.
Print T4 Slips

You can print T4 slips directly from QuickBooks Desktop. You are no longer required to print on pre-printed forms; Revenue Canada will accept T$ slips printed on plain paper. 

  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. In the Print T4s window, indicate which forms you are printing. 
  7. 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 T4 slip per employee
  8. Once again, QuickBooks Desktop returns to the Process End of Year Forms window and indicates that all T4s have been reviewed and are printed. Select Done to close the window.
Email T4 slips
  1. As with printed T4s, from the Process End of Year Forms window, Review each employee’s slip.
  2. Select Email.
  3. If QuickBooks Desktop has one time messages turn on you will see the following warnings: Please ensure you have documented consent from your employees before emailing their T4 slips. T4s are sent as an attachments in the following formats:
    • For the PDF file. QuickBooks Desktop 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 Desktop
    • 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).
  4. If you do not have an email entered for your employee an Information Missing or Invalid window will open. Enter the missing information and choose OK.
  5. Select Forms to Send window will open, this will allow you to edit, remove or select the T4 to send and choose Send Now and OK.
  6. QuickBooks Desktop returns to the Process End of Year Forms window and confirms that you emailed all employee T4s by placing a checkmark in the Emailed column. 
EFILING T4 Slips

To use this service, you have to meet all of the following conditions:

  • You have a Business Number and a Web Access Code. You can find these at the top of your personalized T4 summary from the CRA. If you didn’t receive or have misplaced your Web Access Code or Business Number, contact the Canada Revenue Agency (CRA) to obtain or replace either of them.
    • Your Business Number must be entered in the Company Information window.
  • You must have a Transmitter Number. If you are a current magnetic media transmitter, use the MM number that the CRA has already assigned to you. If you are a new transmitter, use the number MM 555555.
  • When you activate the 'EFILE T4s' service, QuickBooks Desktop 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: QuickBooks Desktop only prints six codes per slip. If you have an employee with more than six codes, you must create a second slip which shows only the extra codes
Note: If you are filing more than 50 T4 slips, you must electronically file using the CRA EFILE service through QuickBooks Desktop or directly through the CRA website. The CRA will no longer accept submissions of more than 50 slips in any other format.
 
To EFILE:
  1. As with printed and emailed T4s, from the Process End of Year Forms window, Review each employee then click EFile.
  2. Enter your transmitter number in the Transmitter Number field.
  3. Fill in the EFILE window:
    1. If your company is a sole proprietorship or partnership, enter your and your partner's SIN numbers.
    2. Before taking you to CRA’s website, QuickBooks indicates the location of your XML file. 
    3. Important: Take note of this file’s location. You will need to know it in a later step.
  4. Once on the CRA’s website, select Enter Internet file transfer (XML) secure Web site and Agree to the terms and conditions
  5. Enter your account number or transmitter number then enter your Web Access Code. Choose Continue to step two.
  6. Follow the on-screen prompts to complete the process. Once you’re done, the CRA website will inform you whether or not your T4s were successfully filed. 
  7. Make note of the Confirmation ID and close the browser window to return to QuickBooks Desktop.
  8. When QuickBooks Desktop returns to the Process T4 window (and if you successfully e-filed the T4s) you will see an EFILE Submission ID. The CRA does not recognize the EFile Submission ID and QuickBooks Desktop does not record the Confirmation ID that the CRA creates. The CRA requires the Confirmation ID that is created on their website as proof of Efiling. 
  9. Click Send.
    • QuickBooks Desktop compiles an .xml file containing your T4 data. This file has the name '_T4Slips.xml' and, by default, is stored in your QuickBooks Desktop directory until it is sent or you close QuickBooks Desktop, when it is deleted.
Amending T4 Slips

If you notice that one or more of the T4 slips you have filed contain an error, you can amend and re-file the slips using QuickBooks Desktop.

In the Process End of Year Forms window:

  • Make sure that the correct form and year are displayed and click amended as the type of form you would like to generate.
  • Select the employees whose T4 slips you would like to amend.
  • Choose Review. 
  • Double click the box you need to correct.
  • Enter your adjustment and the reason for the change, and select OK.
  • When you have finished entering adjustments for the slip, choose Next to move on to the next employee's slip, or ok if you do not need to make any more changes.

After you have amended your T4 slips, you will need to send a copy of each amended form to your employee and the CRA. You can either email the slips to your employee and EFile using CRA EFILE, or print the slips to send and submit manually.

Note: Do not file an amended summary form when you file amended slips. 

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
  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.
Preparing the T4 Summary Report

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.

If you have not EFILED your T4 slips, once all T4s are printed, you must prepare a T4 Summary. This summary report totals all employee earnings as recorded on the T4s. It also totals the deductions and payroll taxes (CPP and EI) withheld from the employees during the calendar year. Lastly, this form is used to reconcile those amounts with the source deduction payments that you remitted to CRA.

QuickBooks Desktop 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. You can get the T4 Summary form by visiting the CRA website at http://www.cra-arc.gc.ca/
 
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