Canadian Payroll Reporter

December 2018

Focuses on issues of importance to payroll professionals across Canada. It contains news, case studies, profiles and tracks payroll-related legislation to help employers comply with all the rules and regulations governing their organizations.

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News December 2018 | CPR News Advance preparation eases reporting process • For T4 box 18, the maximum employee EI premium for 2018 is $858.22 for employees in all parts of Canada, except Que- bec. For Quebec employees, it is $672.10. Report premiums in box C on an RL-1. • In T4 box 24, report the total amount used to calculate the employee's EI premiums, up to the 2018 maximum insurable earnings, $51,700. • In T4 box 26, enter the em- ployee's C/QPP pensionable earnings for the year, up to the 2018 maximum, $55,900. On the RL-1, report the employ- ee's QPP pensionable earnings, up to $55,900, in box G. • If the employee contributed to both the CPP and the QPP, complete two T4 slips, one for the CPP and one for the QPP. On the RL-1, enter code G-2 in one of the boxes in the Ren- seignements complémentaires area, followed by the total amount of CPP pensionable earnings reported on the T4. • Report the employee's QPIP premiums on a T4 in box 55. In box 56, enter the total amount of insurable earnings used to calculate the premiums, up to the 2018 maximum, $74,000. Leave the box blank if there are no insurable earnings, the insurable earnings are the same as employment income reported in box 14, or the in- surable earnings are over the annual maximum. • For an RL-1, report employee QPIP premiums in box H. The maximum employee premium for 2018 is $405.52. Leave the box blank if you did not deduct premiums. Report the total amount of insurable salary or wages from which you deduct- ed QPIP premiums in box I, up to $74,000. • If you over-deducted CPP con- tributions or EI premiums, do not adjust the amounts re- ported on the T4. The CRA will credit employees with the over-contribution when they file their personal tax return. Apply for a refund for the em- ployer overpayment using form PD24. • Include all taxable benefits and allowances in employment income and ensure that cor- responding source deduction totals have been updated. For current employees, report the taxable benefit from employer- paid group term life insurance premiums in box 14 on the T4 and under code 40. For former or retired employees, report the benefit on a T4A, using code 119; however, beginning in 2018, employers do not have to report it if it is the only amount they would be report- ing on the T4A and the premi- um paid does not exceed $50. • Report retiring allowances on a T4. Use code 66 for the amount eligible for tax-free transfer to a registered pension plan (RPP) or registered retire- ment savings plan (code 68 for Status Indians). Use code 67 to report the non-eligible amount (code 69 for Status Indians). For Quebec, report retiring al- lowances in box O on an RL-1, using code RJ. • Report a pension adjustment (PA) in T4 box 52 if the em- ployer contributed to an RPP or a deferred profit-sharing plan for the employee. Enter only the dollar amount. Leave the box blank if the PA is zero or a negative amount, the em- ployee died in the year, or the employee is all paid up. • The CRA requires employers using paper year-end forms to also file a related summary form. For Revenu Quebec, em- ployers must complete an RL-1 summary form. • Employers may distribute 2018 T4s and RL-1s to em- ployees electronically without needing their consent as long as they provide employees with a secure portal and site to access and print them and they give employees the option to receive a paper copy upon request. Otherwise, employ- ers must provide employees with two paper copies of the T4 and copy 2 of the RL-1(for Quebec), unless they already have their consent to deliver the forms electronically. Em- ployers must also provide pa- per copies of the forms if em- ployees request it or if, at the time the employer issues the form, the employee is on an extended leave or is no longer employed by the employer, or the employee cannot reason- ably be expected to have access to an electronic T4/RL-1. • Employers with up to 50 in- formation slips of one type to file for a calendar year may file their returns with the CRA and Revenu Québec on paper or over the internet. • Employers with more than 50 information slips of one type to file must file over the internet. The CRA and Revenu Québec can penalize employers who fail to do this. • To change information af- ter submitting a return to the CRA or Revenu Québec, file an amended form by following the procedures in the CRA's Em- ployers' Guide — Filing the T4 Slip and Summary (RC4120) and Revenu Québec's Guide to Filing the RL-1 Slip: Employ- ment and Other Income (RL- 1.G-V). • If employees lose their paper T4, employers may give them a replacement slip. Mark it as "DUPLICATE" and keep a copy for your records. Do not send it to the CRA. Reve- nu Québec follows a similar procedure. For more year-end reporting information, see https://www. canada.ca/en/revenue-agen- cy/ser vices/tax/businesses/ topics/payroll/completing- filing-information-returns. html (CRA) and https://www. revenuquebec.ca/en/business- es/rl-slips-and-summaries/ (Revenu Québec). Note: The tips are based on information available in late October. Check the CRA's and Revenu Québec's websites and their updated guides for any changes. from YEAR-END on page 3 Published 12 times a year by Thomson Reuters Canada Ltd. 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