T-Slips

Following is a quick refresher on some of the various T-slips you may receive and when you should expect to receive them.

T4
T4's are used to report employment income including salaries and wages, commission income, and taxable allowances and benefits. These payments are subject to payroll withholdings (CPP, EI and income tax as applicable). Employers are required to file their T4 returns and issue the T4 slips to their employees by February 28. Don't forget to ensure your employer has a current Form TD1 on file, especially if your circumstances warrant reduced income tax withholding.

T4A
T4A's are issued if you received pensions, retiring allowances, annuities and other income. Such payments may be subject to income tax withholding depending on the nature of the income. T4A returns must also be filed by February 28, along with the issuance of the T4A slips.

Other T4 slips that may be applicable include T4A(P) for CPP benefits, T4A(OAS) for Old Age Security payments, T4E for Employment Insurance benefits, T4RSP for Registered Retirement Savings Plan income (including withdrawals from an RRSP other than those withdrawn under the Home Buyers Plan), and T4RIF for registered retirement income funds.

T5018
If you are in the construction business, amounts paid to subcontractors must be reported on the T5018 "Contract Payments". Payors of such amounts can prepare the slips on either a calendar year basis or a fiscal year basis; however, issuance can be no later than six months after the end of the reporting period. For example, if the payor chooses the fiscal year basis and the fiscal year end is March 31 then the T5018 return is due September 30.

T5
T5's are used to report investment income including interest, dividends, and certain foreign income. These may be issued in Canadian dollars or in a foreign currency depending on the nature of the investments. The slip will clearly indicate which foreign currency, if any, is applicable so that the amounts can be converted to Canadian dollars for reporting on the tax return. Payors are required to file the T5 returns and issue the T5 slips by February 28.

T3
T3's are used to report income and designations from a trust or an estate. This covers a range of payments from interest and gains on mutual funds to certain distributions from inter vivos (living) trusts and testamentary trusts (created on death via a will). T3 returns must be filed and T3 slips must be issued within 90 days of the trust's taxation year. Only testamentary trusts are allowed to have a year end other than the calendar year, though many with that option still choose a December 31 taxation year. Thus, for the majority of trusts and estates, you can expect to receive the T3 slip around March 31.

If you don't receive your slips within a few days of the respective deadlines, you should contact the issuer to follow up. Always be sure the issuer has the correct and current information (i.e. name spelled correctly, correct SIN, current address).

Caren MacLeod
Scott, Rankin & Gardiner Chartered Accountants
www.srgg.com