T4’s are due by February 28th to Revenue Canada. Are you ready?
Here’s a checklist of what you need:
- Employee information (SIN, address, date of birth)
- 2012 payroll summary including gross pay, deductions
- Your payroll account number
- The total paid for source deductions in 2012
- CRA access code (to file online)
For each employee you need to know and how much you paid in gross wages and what was deducted. If you aren’t using a payroll service you can easily track this using an excel spreadsheet. I recommend using one for each month that you can also calculate your monthly remittance. (see example in picture below) At the end of the year it is best to summarize the year per employee adding their personal information. When each employee is added to the summary page this gives an opportunity to confirm the amount paid with the totals you now have on the summary page. (Total deducted from employees + employer contribution = amount paid during the year to CRA for source deductions)
Once you have confirmed your numbers you are ready file your T4’s. I recommend using Canada Revenue Agency’s website to file T4’s online. (Web forms is easiest to enter your data directly, print the form and file). In order to file T4’s online you will need your access code. This is mailed out to you in January. If you don’t have it, you can retrieve your access code online. You will need your account number, the type of return you are filing (T4) and information from the previous years filing.
Using Web Forms produces the T4 for each employee and complete’s the T4 summary. Be sure to enter the total amount paid for 2012 on the summary page. A confirmation file is created that provides all T4’s and summary to be saved to your computer. From here print the forms and provide employees with two copies.