Canadian Payroll Reporter

News PD24, Application for a Refund of Overdeducted CPP Contribu- tions or EI Premiums. If you issued manual cheques during the year, include them in all year-to-date earnings and de- ductions totals reported on T4s and T4As. Exclude all cancelled cheques. Include all taxable benefits in employment income and make sure that corresponding source deduction totals have been up- dated. Report group term life in- surance taxable benefits in the "Other Information" area of the T4 using code 40 for current em- ployees. For retired employees, report the benefit in the "Other Information" area of a T4A, us- ing code 119 even if the total amount of all benefits paid in the calendar year is $500 or less. Multi-employer plan adminis- trators or trustees who provide group term life insurance tax- able benefits to retirees, current employees or former employees must report the benefit on a T4A only if it is more than $25. Report retiring allowances in the "Other Information" area of the T4. Use code 66 to report the amount of the retiring allowance that is eligible for tax-free trans- fer to a registered pension plan (RPP) or registered retirement savings plan (RRSP) (code 68 for Status Indians). Use code 67 to report the amount that is not eligible for transfer (code 69 for Status Indians). Report a pension adjustment (PA) in T4 box 52 if the em- ployer contributed to an RPP or a deferred profit-sharing plan (DPSP) for the employee. En- ter only the dollar amount (no cents). Leave the box blank if the PA is zero or a negative amount, the employee died in the year or the employee is all paid up. The maximum contribution limit for 2016 for money purchase plans is $26,010 and for DPSPs, it is $13,005. If an employee worked in more than one province/terri- tory during the year, complete a separate T4 for each jurisdiction. Ensure that the PA (if applicable) is reported proportionately on each T4. If this is not possible, report the PA on one slip. Make sure you have a valid so- cial insurance number for each employee and that you have cor- rectly reported it on the infor- mation slips. Report all amounts in Cana- dian currency. For RL-1s, if this is not possible, enter "200" in one of the blank boxes in the Ren- seignements complémentaires area, followed by the type of cur- rency used. The CRA requires employers using paper T4s, T4As, T4A- NRs or NR4s to also file a related summary form. Employers fil- ing electronically do not com- plete a separate summary form. For Revenu Quebec, employers must complete RL-1 summary forms. Give employees two copies of their T4, T4A, T4A-NR and NR4 form by delivering them in person or mailing them to each employee's last known address. If the employee is no longer em- ployed by the employer and the mailed slips are returned, keep the slips with the employee's file. Instead of providing printed copies of the forms, employers may give employees T4, T4A, T4A-NR and NR4 slips in an electronic format as long as em- ployees have consented to this in writing. Give Quebec employees copy 2 of the RL forms. Employers may provide a paper version or, if they have the employee's written consent, an electronic version. Employers with up to 50 in- formation slips of one type to file for a calendar year may file their returns on paper or over the In- ternet. Employers with more than 50 information slips of one type to file must file over the Inter- net. Both the CRA and Revenu Québec can penalize employers who fail to do this, with penalties ranging from $250 to $2,500, de- pending on the number of infor- mation slips by type the employ- er failed to file over the Internet. Filing on CDs, DVDs, USB keys or diskettes is no longer permitted. To change information on a T4 or RL slip already sent to the CRA or Revenu Québec, file an amended form. Follow the pro- cedures set out 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: Employment and Other Income (RL-1.G-V). The guides also provide information on how to cancel slips. If employees lose their T4, employers may give them a re- placement slip. Mark the slip as "DUPLICATE" and keep a copy for your records. Do not send a copy to the CRA. Revenu Qué- bec follows a similar procedure. Before submitting the forms, it is always wise to check and double check them. This may not only reduce the need for is- suing amended forms, it could also help to avoid a CRA Pen- sionable and Insurable Earnings Review (PIER) report. The CRA issues PIER reports when it determines that the amounts an employer reported for C/QPP contributions and/or EI premiums do not match the amounts required based on its Payroll Deductions Tables. Be- sides having to check and correct the errors shown on the PIER re- port, payroll professionals may also have to remit an outstand- ing balance to the CRA, which could include interest charges. Staying organized, starting early and sticking to the rules can help to make year-end re- porting less stressful. Note: The tips are based on in- formation available in October. Check the CRA and Revenu Qué- bec websites and updated guides for any changes. Published 12 times a year by Thomson Reuters Canada Ltd. 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No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, photocopying, recording or otherwise without the written permission of the publisher (Carswell, a Thomson Reuters business). Return Mail Registration # 1522825 | Return Postage Guaranteed Paid News Revenue Toronto Canadian Payroll Reporter is part of the Canadian HR Reporter group of publications: • Canadian HR Reporter — www.hrreporter.com • Canadian Occupational Safety magazine — www.cos-mag.com • Canadian Payroll Reporter — www.payroll-reporter.com • Canadian Employment Law Today — www.employmentlawtoday.com • Canadian Labour Reporter — www.labour-reporter.com See carswell.com for information December 2016 | CPR from GEARING UP on page 3 Consent still needed, but electronic shift is on Staying organized, starting early and sticking to the rules can help to make year-end reporting less stressful.

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