Understanding and Filing T4s, T5s, and Other CRA Forms

Understanding CRA information returns — T4s, T5s, and other forms — is essential for both filing compliance and personal tax planning. Each form serves a specific purpose and has its own filing requirements.

T4 — Statement of Remuneration Paid reports employment income, CPP/EI deductions, income tax withheld, and certain taxable benefits for each employee. Employers must prepare and file T4s by the last day of February following the calendar year.

T4A — Statement of Pension, Retirement, Annuity, and Other Income covers various types of income including commissions to self-employed individuals, fees for services, pensions, and other types of income not reported on a T4.

T5 — Statement of Investment Income reports dividends, interest, and other investment income paid to investors. This applies to corporations that pay dividends to shareholders and financial institutions reporting interest income.

T5018 — Statement of Contract Payments is required by businesses in the construction industry to report payments to subcontractors. This form is filed annually and is used by the CRA to verify that subcontractors report their income.

T2200 — Declaration of Conditions of Employment is not filed with the CRA but must be completed by employers for employees who claim employment expenses. The form certifies the conditions of employment that require the employee to incur expenses.

NR4 — Statement of Amounts Paid or Credited to Non-Residents of Canada reports payments subject to Part XIII withholding tax, including management fees, dividends, interest, and royalties paid to non-residents.

Penalties for late filing are significant. T4 and T5 late-filing penalties start at $100 and increase based on the number of slips and the length of the delay. Repeated late filing triggers higher penalties.

Accuracy is critical. Information reported on these slips must match amounts reported on the recipient's personal or corporate tax return. Discrepancies trigger CRA inquiries and can result in reassessments. Reconcile all information returns against your books before filing.