TurboTax: T4 & Foreign Slip

 

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Relevant Material: "In Canada, the T4 slip (Statement of Remuneration Paid) is the standard document used to report annual employment income and source deductions. When foreign income or non-resident status is involved, specific "foreign slips" like the T4A-NR or NR4 become significant for both domestic and cross-border tax compliance. 

Significance of the T4 Slip
  • Income Reporting: Summarizes gross salary, wages, and bonuses (Box 14) for the calendar year.
  • Mandatory Deductions: Documents contributions to the Canada Pension Plan (CPP), Employment Insurance (EI), and income tax withheld at the source.
  • Taxable Benefits: Includes non-cash compensation such as employer-paid health premiums or company car usage.
  • RRSP Limits: Reports the Pension Adjustment (Box 52), which directly reduces your Registered Retirement Savings Plan (RRSP) deduction limit for the following year. 
Foreign Income & Non-Resident Slips
If you are a Canadian resident with foreign income, or a non-resident with Canadian income, the following slips and rules apply:
  • T4A-NR: Issued to non-residents for services performed in Canada that were not part of regular employment (e.g., contract work or fees).
  • NR4: Reports Canadian-source income (like dividends or pensions) paid to non-residents that is subject to non-resident withholding tax.
  • Foreign Tax Credits: Canadian residents must report worldwide income. To avoid double taxation on foreign earnings already taxed abroad, you can claim a Foreign Tax Credit (Form T2209) on your Canadian return.
  • Cross-Border Equivalent: For those filing in both the US and Canada, a Canadian T4 is generally considered equivalent to a US W-2, while a T4A corresponds to a 1042-S. 
Key Deadlines & Requirements
  • Distribution: Employers must provide T4 slips to employees by the last day of February following the tax year.
  • Global Reporting: If the total cost of your foreign property exceeds $100,000 CAD, you must also file form T1135 (Foreign Income Verification Statement).
  • Currency Conversion: All foreign income reported on Canadian returns must be converted to Canadian dollars using the exchange rate at the time of receipt or the annual average rate. .." (Google) 
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Relevant Material: "

T4 slip – Information for employers

On this page

What is a T4 slip

A T4 slip identifies all of the remuneration paid by an employer to an employee during a calendar year.

You can get a Form T4 slip in a PDF or PDF fillable/saveable format to file on paper.

Sample

T4 2024 slip

When to issue

If you are an employer (resident or non-resident) and you paid your employees employment income, commissions, taxable allowances and benefits, fishing income, or any other remuneration, you must issue a T4 slip if any of the following apply:

  • You deducted CPP/QPP, EI, PPIP, or income tax from remuneration paid to your employee..." (Google) 
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