The deadline to give employees their T4 slips is February 28, 2021 (or the next business day as this falls on a Sunday.) The failure to distribute T4 slips on time is $25/day for each failure with a minimum penalty of $100 and a maximum of $2500.

 

How to distribute T4 slips:

  1.   Secured Portal: You may distribute T4s electronically by making them accessible on a secured portal and with a secured printer.
  2.   Email: You can only distribute T4s through email if you receive written consent from the employee.
  3.   In-Person or by Mail: You can distribute T4s to your employee either through mail or in-person if you provide two copies of the T4 slip in paper format.

 

Quick Tips:

  • If the T4 slip is returned as not deliverable, keep a copy with the employee’s file.
  • Employee’s address not up to date? If you know you have the incorrect address, do not send the employee’s T4 slip to that address. Document why you did not send the copies and all the efforts you took to retrieve the correct address.
  • Print the two T4 slips that you must give each employee on one sheet.

Filing Information Returns Online

You need to distribute your T4s to your employees and file the T4 information return with the CRA by the last day of February. If there are more than 50 slips, you must file electronically with the CRA (no paper filing).

The penalty for filing these returns late can be even more costly than failure to distribute. See the chart below for more applicable penalties.

Penalties for failing to file information returns online

Struggling? Feeling overwhelmed?

Our bookkeeping team is always here to help and happily serve our clients! Please contact one of our many bookkeepers for help at bookkeeping@rlb.ca.

In the meantime, check out other upcoming tax deadlines for 2021.

Reference: How to distribute your T4 Slips