Canadian Payroll Reporter

December 2017 | CPR Published 12 times a year by Thomson Reuters Canada Ltd. Subscription rate: $179 per year Customer Service Tel: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) Fax: (416) 298-5106 E-mail: customersupport.legaltaxcanada @tr.com Website: www.carswell.com One Corporate Plaza 2075 Kennedy Road Toronto, Ontario, Canada M1T 3V4 Director, Media Solutions, Canada Karen Lorimer Publisher/Editor-in-Chief Todd Humber Editor Sheila Brawn sbrawn@rogers.com Editor/Supervisor Sarah Dobson News Editor Marcel Vander Wier Sales Manager Paul Burton paul.burton@thomsonreuters.com (416) 649-9928 Marketing Manager Robert Symes rob.symes@thomsonreuters.com (416) 649-9551 Circulation Co-ordinator Keith Fulford keith.fulford@thomsonreuters.com (416) 649-9585 Payroll Reporter Can R Can R adian adian a www.payroll-reporter.com ©2017 Thomson Reuters Canada Ltd ISBN/ISSN: 978-0-7798-2810-4 All rights reserved. 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 (Thomson Reuters, Media Solutions, Canada). 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 Carefully following rules prevents CRA reviews On the RL-1, report the employ- ee's QPP pensionable earnings, up to $55,300, in box G. If the employee had no pensionable earnings, enter "0." 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 an RL-1, enter code G-2 in one of the boxes in the Renseignements complémentaires area, followed by the total amount of CPP pen- sionable earnings reported in T4 box 26. Report the employee's QPIP premiums on a T4 in box 55. In box 56, enter the total amount of insurable earnings used to calcu- late the premiums, up to $72,500, the maximum for 2017. Leave the box blank if there are no insur- able earnings, the insurable earn- ings are the same as employment income reported in box 14, or the insurable earnings are over the maximum for the year. For an RL-1, report employee QPIP premiums in box H. The maximum employee premium for 2017 is $397.30. Leave the box blank if you did not deduct premiums. Report the total amount of insurable salary or wages from which you deducted QPIP premiums in box I, up to the $72,500 maximum for 2017. If you over-deducted CPP contributions 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. To apply for a refund for the employer over- payment, submit form 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 deductions totals reported on the forms. If there are cancelled cheques, exclude the amounts from the year-to-date earnings and deductions totals. Include all taxable benefits and allowances in employment income and ensure that corre- sponding source deduction to- tals have been updated. Report retiring allowances in the "Other Information" area of the T4. Use code 66 for the amount eligible for tax-free transfer to an RPP or RRSP (code 68 for Status Indians). Use code 67 to report the non-eligible amount (code 69 for Status In- dians). For Quebec, report the total amount of the retiring al- lowances in box O on an RL-1, using code RJ. Report a pension adjustment (PA) in T4 box 52 if the employer contributed to an RPP or a de- ferred profit-sharing plan for the employee. Enter only the dollar amount. Leave the box blank if the PA is zero or a nega- tive amount, the employee died in the year or the employee is all paid up. If a worker served in more than one jurisdiction during the year, complete a separate T4 for each. Ensure that each employee has a valid social insurance num- ber and that you have correctly reported it on the forms. 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 relat- ed summary form. For Revenu Quebec, employers must com- plete an RL-1 summary form. Beginning with 2017 year-end reporting, employers may dis- tribute T4s to employees elec- tronically without their prior consent. To do so, employers must provide employees with a secure portal and site to access and print their T4s. They must also give employees the option to receive paper copies of their T4 if they request it. The new rules apply only to T4s and not to other year-end forms. Revenu Québec has imple- mented similar electronic distri- bution rules for RL-1s. Employ- ers who are distributing paper forms must give employees copy 2 of the form. Employers with up to 50 infor- mation slips of one type to file for a calendar year may file their re- turns with the CRA and Revenu Québec on paper or online. Employers with more than 50 information slips of one type to file must file online. Both the CRA and Revenu Québec can penalize employers who fail to do this, with penalties ranging from $250 to $2,500. To change information on a form after submitting a return to the CRA or Revenu Québec, file an amended form by follow- ing the procedures in the CRA's Employers' 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). If employees lose their paper T4, employers may give them a replacement slip. Mark the slip as "DUPLICATE" and keep a copy for your records. Do not send a copy to the CRA. Revenu Québec follows a similar procedure. Carefully following the rules and checking the forms before submitting them may help to avoid a CRA Pensionable and In- surable Earnings Review (PIER) report. The CRA issues it if it determines that the deductions reported for C/QPP contribu- tions and/or EI premiums do not match the amounts required. Besides having to check and correct the errors shown on the PIER report, payroll staff may also have to remit an outstand- ing balance to the CRA, which could include interest charges. Note: Tips are based on informa- tion available in early November. from YEAR-END on page 3 If a worker served in more than one jurisdiction during the year, complete a separate T4 for each.

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