Canadian Payroll Reporter

6 Canadian HR Reporter, a Thomson Reuters business 2014 T4s have been completed for all individuals who, in the ordinary course of an office or employ- ment, received remuneration during the year, where C/QPP contributions, EI premiums, QPIP premiums or income tax were required to be deducted or where remuneration was more than $500. T4As have been completed for all individuals who received the following types of remuneration, if it was more than $500 or you de- ducted income tax from it: pen- sion or superannuation; lump sum payments; self-employed commissions; annuities; patron- age allocations; or other income described in the Canada Revenue Agency's (CRA's) guide Deduct- ing Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary (RC4157). No employee has contributed more than the 2014 CPP maxi- mum of $2,425.50. No employee has contributed more than $913.68 in EI premi- ums, the 2014 EI maximum for employees in all parts of Canada, except Quebec. The maximum EI premium for Quebec employ- ees is $743.58. Manual cheques have been in- cluded and cancelled cheques have been excluded from all year- to-date earnings totals and de- ductions totals that are reported on the T4 and T4A slips. All taxable benefits have been included as employment income and the corresponding source deduction totals have been up- dated. The latter is especially im- portant for individuals below the yearly pensionable earnings. Group term life insurance tax- able benefits for current employ- ees have been reported using code 40 in the "Other Informa- tion" area of the T4. For retired employees, report the benefit on a T4A in the "Other Informa- tion" area, using code 119 even if the total amount of all benefits paid in the calendar year is $500 or less. Multi-employer plan ad- ministrators or trustees that pro- vide taxable benefits from group term life insurance to former employees or employees of such a plan are required to prepare a T4A slip only if the benefit is more than $25. Box 24 (EI insurable earnings) on the T4 has been completed. In the box, report the total amount used to calculate the employee's EI premiums, up to the annual maximum insurable earnings ($48,600 for 2014). If the em- ployee had no insurable earnings or was exempt from EI, enter "0". Box 26 (CPP/QPP pensionable earnings) on the T4 slip has been completed. In the box, report the employee's pensionable earn- ings for the year, up to the annual maximum pensionable earnings ($52,500 for 2014). If the employ- ee had no pensionable earnings or was exempt from, enter "0". Two T4 slips have been pre- pared for employees who con- tributed to both the CPP and QPP: One showing the QPP deducted and the applicable pensionable earnings and remu- neration the employee earned in Quebec, and the other show- ing the CPP deducted and the applicable pensionable earnings and remuneration the employee earned in any other jurisdiction. The CPP contribution or EI premium amounts reported on the T4 have not been adjusted if you over-deducted employee contributions. The CRA will credit the employee with the over-contribution when he or she files a personal income tax return. To apply for a refund for the employer overpayment, complete form PD24, Applica- tion for a Refund of Overdeducted CPP Contributions or EI Premi- ums. Send it in with your T4s if filing on paper. If filing electroni- cally, send the form in separately by mail. All retiring allowances paid to terminated employees have been reported on a T4. Employers are required to enter the amount of a retiring allowance that is eligible for tax-free transfer to a regis- tered pension plan (RPP) or reg- istered retirement savings plan (RRSP) in the "Other Informa- tion" area of the T4, using code 66 and the amount that is not eli- gible for transfer using code 67. For Status Indians, use code 68 for the eligible amount and code 69 for the non-eligible portion. Employers that contribute to RPPs or deferred profit-sharing plans (DPSPs) for their employ- ees have reported a pension ad- justment (PA) in box 52 of the T4. Enter only the dollar amount (no cents). Leave the box blank if the PA is zero or a negative amount, the employee died in the year or the employee is all paid up (i.e., the employee no longer accrues new pension credits in the year, although he remains a member of the plan). The maximum limit for 2014 for money purchase plans is $24,930 and for DPSPs, it is $12,465. Each employee receives a sepa- rate T4 for each province/ter- ritory in which she performed work at an establishment of the employer. If an employee is re- ceiving more than one T4 slip, you should ensure the PA (if ap- plicable) is reported proportion- ately on each. If this is not pos- sible, report the PA on one slip. Negative dollar amounts are not reported. To adjust amounts reported in previous years, send in an amended form for the year(s) concerned. Amounts are reported only in Canadian currency. Top-up amounts paid to em- ployees receiving workers' com- pensation benefits are reported on the T4. The actual workers' compensation benefits are not reported on the form. With the exception of Quebec, workers' compensation benefits are re- ported by the provincial/territo- rial boards on form T5007, State- ment of Benefits. The 15-character Account Number used to send in em- ployee deductions is shown on all forms except copies of infor- mation slips that are provided to employees. A separate set of information slips and related summaries (if filing on paper) has been pre- pared for each payroll deduc- tions account. If filing on paper, the totals re- ported on the summary forms match the totals reported on the information slips. All relevant information (i.e., the codes and amounts that re- late to employment commis- sions, taxable allowances or ben- efits, and deductible amounts that apply) has been reported in the "Other Information" area at the bottom of the T4 and the T4A. Employees have a valid social insurance number. The headings of the boxes have not been changed. The dollar sign ($) has not been printed or typed on the forms. The forms have been completed clearly and in alphabetical order. If the form is computer-generat- ed or typed, use a standard 10 or 12 characters per inch (CPI) font. No hyphens or dashes have been inserted between numbers or names. Where no amount is entered in a box, leave the box blank. Do not enter "nil". Amounts paid to non-residents for services rendered in Canada that they did not perform in the ordinary course of employment have been reported on a T4A- NR. If pensions, annuities or invest- ment income were paid or cred- ited to non-residents, trusts or corporations, this was reported on form NR4. Employers with Quebec payrolls also have to file RL-1s with Reve- nu Québec. Before completing RL-1s, verify that: The amounts reported on the RL-1 pertain to remuneration paid to and amounts deducted at source from employees who re- port to work at their employer's place of business in Quebec and to those who are not required to report to work, but who are paid from the employer's business lo- cated in Quebec. All salaries and wages have been reported regardless of the amount and whether deductions at source have been taken. No employee has contributed more than the 2014 QPP maxi- mum of $2,535.75. No employee has contributed more than $385.71 in QPIP pre- miums, the 2014 maximum. Manual cheques have been in- cluded and cancelled cheques have been excluded from all year- to-date earnings totals and de- ductions totals that are reported on the RL-1. All taxable benefits have been included as employment income and the corresponding source deduction totals have been up- News December 2014 | CPR from YEAR-END on page 1 Additional payroll requirements for Quebec see PAYROLL on page 8

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