The T4 slip, officially called the Statement of Remuneration Paid, is a crucial document for Canadian employees. It summarizes your employment income and deductions for the tax year and is essential for accurately filing your income tax return. However, mistakes can occasionally occur on your T4 slip, such as incorrect income amounts, wrong deductions, or errors in personal details. Identifying and correcting these errors promptly is vital to avoid issues with your tax filing and potential reassessments by the Canada Revenue Agency (CRA). This detailed guide explains what steps to take if you find an error on your T4 slip.
Common Types of Errors on a T4 Slip
Errors can vary but often include:
- Incorrect employment income or taxable benefits reported (Box 14 and others)
- Wrong amounts for CPP or EI contributions withheld
- Incorrect employee or employer identification information (name, address, Social Insurance Number)
- Missing or extra information slips
- Errors in deductions like union dues, pension contributions, or taxable allowances
How to Identify Errors on Your T4 Slip
Before filing your tax return, carefully review your T4 slip and compare it against:
- Your pay stubs and year-end income summaries
- Previous tax returns for consistency
- Employer payroll statements or benefits information
If any figures or details don’t match your records, you may have an error that needs correction.
Steps to Take If You Find an Error
- Contact Your Employer Immediately: Inform your payroll or HR department about the suspected error and request a corrected T4 slip. Employers are responsible for issuing accurate slips and can file amended T4s with the CRA.
- Do Not Alter the T4 Slip Yourself: Never change information on the original slip as it is an official document issued to both you and the CRA.
- Wait for the Corrected T4 Slip: Your employer should issue a corrected T4 slip, often marked as “Amended,” reflecting the accurate amounts.
- File Your Tax Return Using the Corrected Slip: Use the updated information when completing your tax return to avoid discrepancies.
What If Your Employer Does Not Correct the Error?
If your employer refuses or delays correcting the T4 slip:
- Contact the CRA directly to report the issue and seek guidance.
- You may still file your tax return using the best available information but should clearly explain any discrepancies in a letter attached to your return.
- The CRA may contact your employer to verify the information or conduct further review.
Filing Your Tax Return With an Incorrect or Missing T4
If you have not received your T4 slip by the tax deadline or suspect errors that remain unresolved, consider:
- Using your final pay stub totals as an estimate, but clearly disclose this to the CRA.
- Requesting an extension to file if necessary to allow time for correction.
- Submitting your return with all other accurate information and following up once the corrected slip is available.
What Happens After You File With a Corrected T4 Slip?
If you file your return based on an amended T4 slip, the CRA will process your return accordingly. If you filed before receiving the correction, you can request an adjustment using Form T1-ADJ (T1 Adjustment Request) to update your tax return.
Tips to Avoid T4 Slip Errors
- Keep detailed records of your pay and deductions throughout the year.
- Review each T4 slip as soon as you receive it.
- Communicate promptly with your employer if you notice discrepancies.
- Use CRA’s My Account online service to verify slips received by the CRA.
- File your return only after receiving all correct slips.
Conclusion
Errors on your T4 slip can lead to incorrect tax filings, delays in refunds, or CRA reassessments. The best course of action is to promptly notify your employer, obtain a corrected slip, and file your tax return with accurate information. If issues arise, the CRA offers support to resolve discrepancies. Staying vigilant and organized will help ensure your tax filing process is smooth and error-free.
