Essential T4 Preparation Guide

What Ontario Employers Need to Know for 2024 Filing

As Ontario businesses prepare for T4 season, understanding the nuances of proper preparation and filing is crucial for maintaining CRA compliance. Whether you’re a medical practice, dental office, or growing SME, this comprehensive guide will help you navigate the T4 preparation process for the 2024 tax year.

Key Deadlines for 2024 T4s

Mark these critical dates in your calendar:

• February 29, 2025: Deadline to file T4 information returns
• February 29, 2025: Deadline to distribute T4 slips to employees
• March 15, 2025: First penalty-free deadline extension (if applicable)

Missing these deadlines can result in significant penalties, starting at $100 and increasing based on the number of T4 slips and days late.

Essential Information Required for 2024 T4s

Box-by-Box Breakdown

Mandatory Boxes

• Box 14: Employment income (before deductions)
• Box 16: Employee’s CPP contributions
• Box 18: Employee’s EI premiums
• Box 22: Income tax deducted
• Box 24: EI insurable earnings
• Box 26: CPP/QPP pensionable earnings
• Box 28: Exempt status
• Box 29: Employment code

Additional Required Information

• Employee’s full name and address
• Employee’s Social Insurance Number (SIN)
• Your business’s account number
• Calendar year of reporting

Special Considerations for 2024

Several updates and special considerations apply for the 2024 tax year:

1. Remote Work Allowances
   • Report taxable home office allowances in Box 14
   • Use Code 42 for home office equipment reimbursements
   • Document ongoing remote work arrangements
2. Benefits Updates
   • New thresholds for health spending accounts
   • Updated calculations for automobile benefits
   • Modified rules for stock option deductions
   • Enhanced reporting for wellness benefits
3. Pension Adjustments
   • Updated CPP contribution rates
   • New pension adjustment calculations
   • Modified RRSP deduction limits
   • Special considerations for part-time employees

Healthcare Industry Specifics

Medical and Dental Practices

Special considerations for healthcare providers include:

1. Professional Development
   • Conference attendance allowances
   • Medical journal subscriptions
   • Professional membership dues
   • Continuing education credits
2. Practice-Specific Benefits
   • Medical staff benefits reporting
   • On-call compensation
   • Locum arrangements
   • Clinical bonus structures
3. Equipment Usage
   • Personal use of practice equipment
   • Home office medical equipment
   • Mobile device allowances
   • Vehicle use for patient visits

Common Errors to Avoid

1. SIN Errors

• Always verify SINs against official documents
• Use the CRA’s SIN verification service
• Report temporary SINs correctly
• Maintain SIN confidentiality protocols

2. Box Code Mistakes

• Double-check employment codes
• Verify pension adjustment calculations
• Ensure proper use of exempt codes
• Review special payments coding

3. Amount Reporting Errors

• Reconcile payroll records before filing
• Include all taxable benefits
• Properly calculate pensionable earnings
• Account for mid-year adjustments

Electronic Filing Requirements

Who Must File Electronically?

Businesses must file electronically if they:

• Issue more than 50 T4 slips
• Submit any amended T4 slips
• Operate multiple business locations
• Have complex reporting requirements

Filing Methods

1. CRA’s Web Forms application
2. My Business Account
3. Represent a Client
4. XML filing for larger businesses

Year-End Checklist

✓ Verify employee information

✓ Reconcile payroll accounts

✓ Calculate taxable benefits

✓ Review special payments

✓ Check compliance requirements

✓ Prepare distribution method

✓ Plan for deadline adherence

✓ Document any special circumstances

T4 Record Keeping Requirements

Maintain detailed records, including:

• Payroll registers
• Time sheets
• Benefit calculations
• Employment contracts
• Reimbursement documentation
• Remote work agreements
• Vehicle logbooks
• Professional development records

Keep these records for six years from the end of the last tax year they relate to.

Preparing for Changes in 2025

Stay informed about upcoming changes:

• New digital filing requirements
• Updated benefit calculations
• Modified reporting thresholds
• Enhanced security measures
• Changes to remote work policies
• Updated healthcare benefit reporting

Get Expert T4 Help

At K.K. Chartered Professional Accountant, we specialize in helping Ontario businesses navigate T4 preparation and filing. Our team stays current with CRA requirements and can help ensure your T4 process is smooth and compliant.

Ready for expert T4 preparation assistance?

Contact us today at 855-667-1727 or via the form here to:

• Review your T4 preparation process
• Ensure compliance with current requirements
• Address special situations
• Plan for efficient filing
• Avoid common pitfalls

Don’t risk penalties or filing errors. Let our experienced team help you navigate T4 season successfully.