T4 slips and year-end payroll reporting for 2026

When 2026 T4 slips are due

You must file your T4 return and give each employee a copy of their T4 slip by the last day of February following the calendar year. For 2026 payroll, that falls on Sunday, February 28, 2027, so the CRA’s next-business-day rule moves the due date to Monday, March 1, 2027. The CRA’s business deadlines page and Sora’s deadlines guide show the same date.

Income goes on the slip for the year it was paid, not the year the work was done. A December 2026 shift paid in January 2027 belongs on the 2027 slips. Check your pay dates, rather than your work periods, when you review the year.

If an employee leaves during the year, the due date does not change. The CRA suggests giving them a T4 slip with their earnings to date, and you still file it with the rest of your return. A Record of Employment is a separate requirement.

What the T4 return includes

A T4 return has two parts: one T4 slip for each employee and a T4 Summary that totals them. The summary adds up the employee CPP contributions, employee EI premiums, income tax deducted and employment income from the slips, then adds your own share of CPP and EI. It also records how many slips you filed.

A slip is generally required for salary, wages, bonuses and vacation pay, and for taxable benefits or allowances, as well as whenever you were required to deduct CPP, EI or income tax. Amounts paid to people who are not employees are a separate question. A T4 slip issued by mistake to a sole proprietor or partner should be cancelled. If you are unsure whether someone is an employee, settle that before year-end; the employee-or-contractor tool can help you organize the facts.

Who has to file electronically

For returns filed on or after January 1, 2024, the threshold is more than 5 information returns. Each slip counts as one return, and the count is by type. If you file six T4 slips, you must file them electronically. Older guidance that mentions 50 slips applies to earlier years, so check the date on any source you rely on.

The CRA offers Web Forms for up to 100 slips, or internet file transfer of an XML file produced by payroll software. Paper filing is available only for one to five slips.

Filing on paper when you were required to file electronically carries a penalty. It starts at $125 for 6 to 50 slips and is assessed for each type of return, so six T4 slips and six NR4 slips on paper would draw two penalties.

Reconcile remittances to the T4 totals before you file

The summary asks for the total of CPP, EI and tax deductions on line 80 and the amount you actually remitted for the year on line 82. The CRA compares them. If they differ, you may owe a balance or have an overpayment. Generally, the CRA does not charge or refund a difference of $2 or less.

Do not wait for the filing deadline to find a gap. In January, compare your payroll register totals for the year with the payments shown in your CRA account and your bank. Check the employer shares too, since they are part of line 80. Timing is a common source of confusion: the final December payroll is often remitted in January, so be clear which payments belong to which year.

Do not send a regular remittance with the T4 return. If the return is filed after the remittance due date, the payment is considered late. Remittances have their own schedule, described in the payroll remittance entry and the CRA’s due-date page.

Taxable benefits on the T4

Taxable benefits and allowances are part of employment income. They are reported in box 14 and, for many of them, also in the Other information area with a code. Personal use of an employer’s vehicle is code 34. A taxable interest-free or low-interest loan is code 36. Other taxable allowances and benefits not reported elsewhere on the slip go under code 40.

Benefits cause problems because nobody invoices them. A gift card, a parking spot or a vehicle may never pass through payroll, so it does not appear in the register. Before year-end, ask what the business provided beyond wages. Whether a particular perk is taxable depends on its nature and value, so confirm it with the CRA’s benefit guidance or your accountant, rather than assuming.

Benefits can also affect CPP and EI. The slip reports pensionable earnings in box 26 and insurable earnings in box 24, and the CRA may question amounts that do not line up with the contributions deducted.

Common errors to check for

Several mistakes recur. A missing or wrong social insurance number is one. If you do not have an employee’s number, the CRA tells you to enter nine zeros, but if the employee does not provide it within three days of starting work, you need to be able to show you made a reasonable effort to get it, or a $100 penalty can apply for each number. Another is a slip issued in error to an owner who is a sole proprietor or partner, which should be cancelled rather than left in place.

Others include reporting income in the wrong calendar year, leaving benefits off the slip, entering the wrong province of employment, and putting numbers on the summary that do not match the slips. Do not show negative amounts on a slip.

After filing, the CRA may send a pensionable and insurable earnings review (PIER) report listing employees whose slips need attention. Respond to it with the corrections it asks for rather than amending the slips separately.

Late filing and other penalties

A late T4 return can attract a penalty based on the number of slips filed late and how many days late they are. The minimum is $100. The per-day amount is $10 for 1 to 50 slips, up to a maximum of $1,000, and it rises for larger returns. The CRA notes an administrative policy that reduces the assessed penalty for small businesses, but you should not plan around it.

Separately, if you do not give an employee their slip on time, the penalty can be $25 per day per slip, with a minimum of $100 and a maximum of $2,500. Unpaid amounts accrue interest, and interest also applies to unpaid penalties.

If a penalty arises from circumstances outside your control, you can ask the CRA to cancel or waive it through the taxpayer relief provisions. Keep records of what happened.

A year-end routine and what to bring

A workable routine is short. In early January, confirm the final pay date and remittances for 2026. Reconcile the payroll register to CRA remittances. Review employee details, including names, SINs and addresses. List every taxable benefit. Prepare the slips, and only then file and distribute them. Keep a copy of the slips and summary with your records.

This article is different from the first-payroll checklist, which covers setting payroll up. For year-end help, bring the payroll register, remittance confirmations, a list of benefits and any corrections made during the year, and describe your payroll needs to Sora so the scope is clear.