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Read GuideT4 Preparation: Step-by-Step Filing Guide
Master the complete process of T4 slip preparation, avoid common mistakes, and meet CRA deadlines with confidence. This comprehensive guide walks you through every step.
What You’ll Learn in This Guide
T4 slips are critical documents in Canada’s tax system. They’re not optional—they’re required for every employee you’ve paid during the year. Getting them right matters because errors create headaches for employees and can trigger CRA audits for your business.
We’ve broken down the entire T4 process into manageable steps. You’ll understand what information goes where, how to avoid the mistakes we see most often, and exactly when everything’s due. By the time you finish reading, you’ll feel prepared to handle T4 season with minimal stress.
February 28
Employee Deadline
March 31
CRA Deadline
5 Copies
Required Per Slip
The T4 Preparation Process
Follow these five key steps to prepare accurate T4 slips for every employee.
01
Gather Employee Information
Start by pulling together your employee records. You’ll need their SIN, full legal name, current address, and employment start/end dates if applicable. This is foundational—incorrect information here cascades through the rest of the form. Double-check spelling on names especially. The CRA matches this against social insurance records and mismatches cause problems.
02
Calculate Employment Income
This goes in Box 14 (Total Employment Income). Add up all gross wages, salaries, taxable benefits, and gratuities. Don’t include pension adjustments or deferred income plan contributions. The figure should match your payroll records exactly. We recommend running a separate calculation and comparing it to your payroll system before you finalize anything.
03
Record Deductions and Contributions
Populate the deduction boxes carefully. Income tax deducted (Box 22), CPP contributions (Box 16), EI premiums (Box 18), and union dues (Box 44) are the main ones. Many businesses miss Box 20 (Registered Pension Plan deductions) or Box 52 (Taxable benefits). These aren’t optional—if you’ve deducted or contributed these amounts from the employee’s pay, they go on the T4.
04
Verify Against Payroll Records
Before you print anything, do a complete verification. Cross-reference each T4 against your year-end payroll report. Total employment income, deductions, and contributions should match your records exactly. We recommend a checklist: Does the SIN match? Is the name spelled correctly? Do all boxes add up? This step catches errors before they reach employees or the CRA.
05
File with CRA and Distribute
You’ll file one copy with the CRA by March 31 and give copies to employees by February 28. That’s an important distinction—employees get theirs first. Use NETFILE to submit electronically if you’re filing more than five T4s. Keep copies for your records. It’s not done until everything’s submitted and distributed on time.
Common T4 Errors and How to Avoid Them
Most T4 mistakes fall into a few categories. Here’s what we see regularly and how to prevent each one.
Incorrect SIN Format
Social Insurance Numbers must be formatted exactly: 123-456-789. No spaces, no dashes in the wrong places. The CRA rejects or flags forms with mismatched SINs. Verify against the employee’s original documents when you hire them—don’t rely on what they tell you verbally.
Missing or Wrong Employment Dates
If someone started mid-year or left mid-year, you must indicate that. Box 12 shows employment dates. Leaving this blank when someone didn’t work the full year creates discrepancies. The CRA knows when people change jobs, so mismatches trigger questions.
Box Totals That Don’t Reconcile
Your T4 totals need to match your payroll reports. If Box 14 (total income) doesn’t equal what you paid them, something’s wrong. Run the numbers twice. We’ve caught errors this way that would’ve caused audit flags for employees months later.
Forgetting Taxable Benefits
Company vehicle use, health insurance premiums you pay, parking allowances—these count as taxable benefits and go on the T4. Forgetting them means the employee’s T4 shows less income than the CRA expects. This creates matching problems when they file their tax return.
Critical Deadlines You Can’t Miss
T4 deadlines are fixed. There’s no extension, no flexibility. Miss these and you’re looking at penalties and CRA correspondence.
February 28, 2026
Provide T4 copies to employees
This is the employee deadline. They need it by this date for
their own tax filing.
March 31, 2026
File T4s with CRA
Your deadline to submit all T4s to Canada Revenue Agency.
Use NETFILE if you’re filing more than five.
Mark both dates on your calendar now. The CRA doesn’t accept “I didn’t know” as an excuse. Late filing can result in penalties of $100 per late slip (up to $12,500 per month), plus interest on any unpaid taxes. It’s worth organizing your payroll early to meet these deadlines comfortably.
Tools and Resources for T4 Preparation
These resources make the process more efficient and help you stay accurate.
CRA T4 Guide
The official CRA guide explains every box, field requirement, and deadline. It’s the authoritative source. Download it from the CRA website or request it directly.
Payroll Software
Most modern payroll systems generate T4s automatically from your year-end payroll data. They handle calculations and formatting. Wagepoint, ADP, Ceridian, and similar platforms all include this.
NETFILE Portal
File electronically through CRA’s NETFILE system. It’s faster, more secure, and the CRA confirms receipt immediately. You’ll need to register your business first.
Verification Checklist
Create a simple checklist: SIN format, employment dates, income totals, deductions, benefits. Run through it for every employee before submission. Catches mistakes before they cause problems.
Key Takeaways for T4 Success
T4 preparation doesn’t have to be stressful. It’s really about following a systematic process: gather information accurately, calculate numbers carefully, verify everything, and submit on time. We’ve covered the complete process here—from the initial setup through CRA filing.
The most important things to remember are these: double-check SINs and names, make sure all numbers reconcile with your payroll records, include every deduction and contribution, and hit those February 28 and March 31 deadlines. Do those things and you’ll avoid most problems.
If you’re using payroll software, it’s handling much of this automatically. If you’re preparing T4s manually, take your time and use a checklist. Either way, verify the results against your payroll data before you submit anything to the CRA.
Need More Guidance?
Explore our related guides on CPP contributions, EI premiums, and payroll remittance schedules. Each guide provides the specific details you need for other aspects of payroll accounting in Canada.
Important Disclaimer
This guide provides educational information about T4 preparation based on CRA requirements and standard payroll practices. Tax laws change, and circumstances vary widely. This isn’t personalized tax or accounting advice. If you’re unsure about any aspect of T4 preparation for your specific situation, consult with a qualified accountant, bookkeeper, or contact the Canada Revenue Agency directly at 1-800-959-5525. The CRA website (canada.ca/taxes) also provides official forms, guides, and updated information.
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