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How to Prepare and File T4 Slips

Step-by-step guide to preparing, filing, and distributing T4 slips in QBO Payroll before the February 28 deadline.

What You Will Need

  • Access to QBO Payroll (or your payroll software)
  • Access to CRA My Business Account or CRA Web Forms
  • All payroll runs for the calendar year completed and finalized

What Goes on a T4

Each T4 reports the employee's:

Box

What it is

Box 14

Employment income (total gross wages)

Box 16

Employee CPP contributions

Box 18

Employee EI premiums

Box 22

Income tax deducted

Box 52

Pension adjustment (if applicable)

Box 40

Taxable benefits (if you provided any — vehicle, group insurance, etc.)

If you provided taxable benefits to employees during the year (company car, group benefits plan, housing allowance), those amounts must be included on the T4 and are subject to payroll deductions.


Normal Procedure

Step 1: Finalize the year's payroll

Before preparing T4s, make sure all payroll runs for the year are processed and correct. This includes:

  • All regular pay periods completed
  • Any bonuses, commissions, or irregular payments recorded
  • Taxable benefits calculated and added to employment income
  • Any payroll corrections completed

Step 2: Generate T4s in QBO Payroll

  1. In QBO Payroll, go to Payroll > Year End > T4s.
  2. Select the tax year.
  3. QBO will generate a T4 for each employee based on the payroll records.
  4. Review each T4 for accuracy — confirm the amounts in each box match your records.
  5. If corrections are needed, adjust the underlying payroll run first, then regenerate.

Step 3: File T4s with the CRA

You must file the T4s (the "T4 Summary" return) with the CRA by February 28 (or last day of February):

Option A: File through QBO

QBO Payroll allows direct e-filing to the CRA from within the software. Go to Payroll > Year End > File T4s and follow the prompts.


Option B: File through CRA My Business Account

Log in, go to Payroll > File T4 slips, and upload the XML file generated by your payroll software.


Option C: Paper filing

Only available for employers with fewer than 6 employees. Download the T4 forms from the CRA website, complete them, and mail with the T4 Summary.


Step 4: Distribute T4s to employees

Give each employee their T4 slip by the last day of February. You can:

  • Email a PDF copy
  • Provide access through an employee self-serve portal (if your payroll software supports it)
  • Hand-deliver or mail a paper copy

Employees need their T4 to file their personal income tax return.


Abnormal Procedures

You filed T4s and then discovered an error.

File an amended T4 for the affected employee. In QBO Payroll or through CRA My Business Account, you can file a T4 amendment. Notify the employee of the correction and provide an updated slip.


An employee left mid-year and you cannot reach them.

You are still required to file their T4 with the CRA. Mail a copy to their last known address. Keep documentation that you attempted to deliver it.


You have a large number of employees and missed the deadline.

File as soon as possible. The CRA charges a late-filing penalty based on the number of T4s outstanding and how late they are (starting at $100 minimum, scaling up). Filing late is better than not filing.


You paid someone as a contractor but the CRA says they should have been an employee.

You may be required to issue a T4 and remit backdated source deductions. This is a significant compliance issue — get your Mesa CPA advisor involved immediately.


FAQ

What is the difference between a T4 and a T4A?

A T4 is for employees — it reports employment income and source deductions. A T4A is for non-employment income paid to individuals — contractors, pension income, RESP payments, etc. If you paid a contractor more than $500 during the year, you file a T4A for them.


Do I need to file a T4 Summary even if I have no employees?

No. A T4 Summary (the employer's summary form that accompanies the T4 slips) is only required if you are filing T4 slips. If you have no employees, nothing is required.


What if an employee earned very little — do they still need a T4?

Generally, if you withheld any CPP, EI, or income tax from an employee's pay during the year, you must issue a T4 regardless of how small the amount.


Can employees access their T4s through the CRA's website?

Yes — employees can log in to CRA My Account and access their T4s directly, typically by late March. This does not replace your obligation to provide them directly by the end of February.