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T4 Slip Explained | How to Read Your T4 Statement

Updated

What Is a T4 Slip?

The T4 Statement of Remuneration Paid is a tax form that shows:

  • How much you earned from employment
  • How much income tax was deducted
  • Your CPP and EI contributions
  • Other deductions and taxable benefits

You need your T4 to file your income tax return. Your employer must provide it by the end of February.

T4 Box Guide

Income Boxes

Box Description What It Means
Box 14 Employment income Your total taxable employment income before deductions
Box 26 CPP/QPP pensionable earnings Income used to calculate CPP contributions
Box 24 EI insurable earnings Income used to calculate EI premiums

Box 14 is the main number you’ll report on your tax return. It includes your salary, wages, bonuses, vacation pay, and taxable benefits.

Deduction Boxes

Box Description 2025 Rates
Box 16 CPP contributions 5.95% of pensionable earnings (max $3,867.50)
Box 17 QPP contributions (Quebec) 6.40% (max $4,160.80)
Box 18 EI premiums 1.64% of insurable earnings (max $1,077.48)
Box 22 Income tax deducted Tax your employer withheld

Additional CPP (CPP2)

Box Description 2025 Amount
Box 16A Second CPP contributions (CPP2) 4% on earnings $68,500–$73,200 (max $188)

CPP2 is an additional contribution on earnings above the first earnings ceiling. Most employees pay this through payroll deductions.

Taxable Benefits Boxes

Box Description
Box 30 Board and lodging
Box 32 Travel in a prescribed zone
Box 33 Medical travel assistance
Box 34 Personal use of employer’s auto
Box 36 Interest-free/low-interest loan benefit
Box 38 Security options benefits
Box 40 Other taxable allowances and benefits

Taxable benefits are already included in Box 14. These boxes provide details on what benefits were included.

Other Important Boxes

Box Description
Box 20 RPP contributions (pension)
Box 42 Employment commissions
Box 44 Union dues
Box 46 Charitable donations (payroll)
Box 52 Pension adjustment (PA)
Box 55 Employee PRPP contributions

Reading Your T4: Example

A typical T4 might show:

Box Amount Description
Box 14 $75,000 Employment income
Box 16 $3,867.50 CPP contributions
Box 18 $1,077.48 EI premiums
Box 22 $12,500 Income tax deducted
Box 44 $520 Union dues
Box 52 $8,200 Pension adjustment

This employee earned $75,000, paid maximum CPP and EI, had $12,500 withheld for income tax, and contributed to a workplace pension.

How T4 Boxes Affect Your Taxes

Box 14: Employment Income

  • Reported on line 10100 of your tax return
  • This is your taxable employment income
  • Already includes taxable benefits

Box 16/17: CPP/QPP Contributions

  • Claimed as a non-refundable tax credit
  • Reduces your taxes owed
  • Half gives a 15% federal credit, half reduces taxable income

Box 18: EI Premiums

  • Claimed as a non-refundable tax credit
  • 15% federal credit on your EI contributions

Box 20: RPP Contributions

  • Claimed as a deduction (line 20700)
  • Directly reduces taxable income

Box 22: Income Tax Deducted

  • Compared to your actual tax owing
  • Overpayment = refund
  • Underpayment = taxes owed

Box 44: Union Dues

  • Claimed as a deduction (line 21200)
  • Directly reduces taxable income

Box 52: Pension Adjustment

  • Reduces your RRSP contribution room
  • Already factored into your Notice of Assessment

Multiple T4 Slips

If you worked multiple jobs, you’ll receive a T4 from each employer. Add all your T4s together:

  • Total employment income (all Box 14)
  • Total tax deducted (all Box 22)
  • Total CPP contributions (all Box 16)
  • Total EI premiums (all Box 18)

If you over-contributed to CPP or EI due to multiple jobs, you’ll receive a refund when you file.

T4 vs Other Tax Slips

Slip Used For
T4 Employment income
T4A Pensions, annuities, other income
T4E Employment Insurance benefits
T4RSP RRSP withdrawals
T4RIF RRIF withdrawals
T5 Investment income (interest, dividends)
T3 Trust income
T2202 Tuition and education amounts

Common T4 Questions

What if I didn’t receive my T4?

  1. Contact your employer first
  2. Check CRA My Account (available mid-February)
  3. If still missing by late March, contact CRA
  4. You can file using your pay stubs if necessary

Can I file without my T4?

Yes, but you must use accurate figures from your pay stubs. CRA will eventually receive your T4 and check it against your return.

What if my T4 is wrong?

Contact your employer immediately. Common errors include:

  • Wrong address (doesn’t affect tax calculation)
  • Missing income
  • Incorrect tax deducted
  • Wrong SIN (critical to fix)