Francesca Giroux, CPA
For the Lakeside Leader
T4s should be filed for the 2017 year and given or mailed to all employees by February 28, 2018. The penalty for failing to file an information return or to distribute to recipients late is the greater of $100 or for 50 or less T4’s, $10 per day late up to a maximum of $1,000. The penalty per day and maximum penalty increase with the number of T4 slips filed. If you have more than 50 T4’s to file the penalty rates can be found at www.canada.gc.ca by typing in T4 – Information for employers in the search box. Once you have reached the T4 – Information for employers page select penalties.
There are additional penalties such as failure to obtain your employee’s social insurance number (SIN). If you do not make a reasonable effort to obtain your employee’s SIN you may be subject to a penalty of $100 for each failure. On the other hand, an employee who refuses to give you his or her SIN may also be subject to a penalty of $100. Per Canada Pension Plan (CPP) regulations you must tell employees who do not have a SIN how to obtain one by referring them to the Service Canada Centre within three days of the start of their employment and ask them for proof of SIN application and SIN card once received.
After you file your returns the Canada Revenue Agency (CRA) checks the calculations made on the T4 slips that were filed with your T4 Summary to ensure that the required CPP contributions and Employment Insurance (EI) premiums were reported correctly. The CPP and EI balances reported are agreed to the deductions withheld and remitted. If there is a difference between the CPP contributions or EI premiums required and the ones that were reported or remitted you will receive a Pensionable and Insurable Earnings Review (PIER) listing and summary that will indicate the balance due. Check to ensure that the PIER report is correct before remitting the balance due. The employer is responsible for remitting the balance due, including the employee’s share.
Please e-mail your questions to [email protected]
Information provided is of a general nature. As each individual or company’s situation is unique, you may wish to consult with your CPA for information specific to your own needs.