Frequently Asked Questions from Employees for 2019 Year-End and 2020 First Pay Period
Sometimes internal communications get missed. If your employees don't receive, or see, your communications regarding 2019 tax slip information or what they can expect from their first pay of 2020, we've put together a comprehensive FAQ of the most common questions we find employees will ask their Payroll team on the matter.
Employee Tax Slip FAQ for Payroll Year-End
1. Why do I have two T4 Slips?
If you have received more than one T4 from us there are a few possible reasons:
- You worked at different locations and/or different divisions of the company which required us to produce a T4 for each business number you worked in
- You worked or earned income in different ways, for example you were on contract for a period of time and then gained full-time employment with us
- You worked for the company in two different provinces during the year
If any of these apply, and you received the 2 slips together, it is important that you include them both in your tax return.
2. What is box 40 on my T4?
Box 40 on your T4 is the amount of Taxable Benefits that you have received in the year. Taxable Benefits are those benefits that have been paid by the company on your behalf. Examples of Taxable Benefits include Life Insurance and company RRSP contributions. Taxable Benefits are identified as such on your pay statements. If you total the items identified as Taxable Benefits on your pay statements you should arrive at the total in Box 40. If your total is not the same as Box 40 please contact your Payroll team.
3. Why does my income in box 14 on my T4 seem high?
You may have received two or more T4s. The amount shown in Box 14 in each T4 should be totaled and equal to your final December pay statement year-to-date earnings, plus the total of taxable benefits recorded in Box 40 of each T4. If this is not the case please contact your Payroll team.
4. Why does my income in box 14 on my T4 seem low?
Box 14 includes your gross salary as well as all applicable taxable benefits that are shown in Box 40.The amount shown in Box 40 should be added to your gross year-to-date salary from your final December pay statement. The total should equal the amount shown in Box 14. If this is not the case, please contact your Payroll team. AND … if your company had an extra pay period this year you can also include this explanation: This year because we are on a bi-weekly or weekly frequency, our organization had an extra pay period so the amount in Box 14 may be slightly higher than you expected.
5. What is the difference between a T4 and a T4A?
The Canada Revenue Agency requires that different tax slips be used to report specific types of income.
- A T4 is a tax slip issued to report employment income, taxable benefits and retiring allowances.
- A T4A is a tax slip for income such as pension, lump sum payments, and other income as defined by the CRA.
6. How can I get a reprint of my tax slip if I lose it?
You can print as many copies of your T4/T4A from your employee self-service if you opted in to receive your tax slip electronically. If you have not opted in to self-service please contact your Payroll team, we can provide you with a copy of your T4 and help you get registered for self-service.
7. Do I need to print my online tax slips?
If you are filing your taxes electronically, printing the slip is entirely optional as you will always have access to the slips through your employee self-service portal should you need them now or in the future. If you file electronically, you can read the values for each of the tax slip boxes online as you are completing your income tax return.
8. Will Canada Revenue Agency (CRA) accept a self-printed/online tax slip?
The CRA gladly accepts self-printed tax slips from our employee self-service portal. The form generated matches all specifications from CRA and will look almost identical to a printed T4 or T4A.
9. What if there is incorrect information on my T4/T4A?
If your Social Insurance Number is incorrect, or if the financial information on you believe your tax receipt is incorrect, please contact your payroll team, as they may have to reissue a new tax receipt. If your address is incorrect, simply enter the correct information on your tax return.
10. How do I arrange to make changes to my tax claim amounts or have additional taxes deducted from my pay next year?
You will need to complete and submit new TD1 forms (Provincial and Federal) for 2020 indicating the changes or additional amount to be deducted. The TD1 forms can be accessed through your Employee Self-Service or at the CRA website.
11. Why are over half of my tax slip boxes empty?
Only the tax boxes relevant to you will be completed. But if you feel there is a box that should have a value in it please contact your Payroll team.
12. Why is my income in Box 14 greater than the CPP pensionable / EI insurable earnings? (i.e. when Box 14 shows $61,888 and Box 24 is $53,100 and Box 26 is $57,400)
Box 24 EI insurable earnings has a maximum of $53,100 (2018) and Box 26 CPP/QPP pensionable earnings has a maximum of $57,400 (2019). If your income is higher than those amounts it is because you reached the maximums.
13. Who should I contact if I have a question?
If you have additional questions or concerns, please contact your Payroll service team. To facilitate a response to your query, please have your T4 and/or T4A, as well as your final December 2019 pay stub available.
14. I need help filing my tax return.
The Canada Revenue Agency can help you if you're having a tough time filing your income tax return. If you are a student, senior, person with a disability, a newcomer to Canada, or a low-income earner with a simple tax-filing situation, you can contact the Community Volunteer Income Tax Program (CVITP) at: 1-800-959-8281 to ask for help. CVITP volunteers work with members of local community organizations who can help you complete and file your return. Click here for more information on the Community Volunteer Income Tax Program.
1a.Why is my pay cheque less in January than it was in December?
Check your December 2019 pay statement to see if you maxed out on your CPP and EI contributions in 2019. Remember that CPP and EI restart every January.
1b.Why is my pay cheque less in January than it was in December?
The new employee annual maximum contributions for 2020 are:
- CPP: $2,898.00
- QPP: $3,146.40
- EI: $856.36
- Québec EI: $650.40
- QPIP: $387.79
2. Why is my vacation / sick / PTO balance reset to zero?
Vacation is moved into a previous year accrual bank. Sick and / or PTO are restarted every January with new balances.
3. I would like to contribute to my RRSP in the first 60 days of the new year, what is the RRSP annual contribution limit for 2019?
The maximum RRSP annual contribution limit for 2019 is $26,500.
4. How much am I allowed to put into my TFSA for 2020?
The TFSA limit for 2020 is $6,000.
5. Will the minimum wage be changing in 2020, and if so, when and by how much?
6. Why do I need to complete new TD1s each year?
A new TD1 ensures that you inform us of any changes in your life that impact your income tax calculations. This could include having a new dependent, you have recently become a caregiver or have enrolled in school. Completing a new TD1 helps to make sure your taxes will be calculated accurately at the source, your pay.
7. I don't want additional tax to come off my cheque this year, how can I prevent that?
When you complete your new Federal TD1 leave the "Additional Tax to be deducted" box blank and Payroll will not deduct additional tax from your pay.