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Canadian HR Reporter, a Thomson Reuters business 2017
News CPR
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December 2017
Time to gear up for year-end
Tips for successfully filing T4 and RL-1 information returns in Canada, Quebec
BY THOMSON REUTERS' PAYROLL CONSULTING GROUP
FOR PAYROLL professionals,
December is about more than
the holidays. It's also time to fin-
ish preparing for the 2018 tax
year and year-end reporting.
With T4 and RL information
returns due by Feb. 28, payroll
staffers have a lot to do in a short
period. The following tips can
help you stay on top of 2017 year-
end reporting requirements:
Prepare T4s for employees
who received remuneration dur-
ing the year, where Canada/Que-
bec Pension Plan (C/QPP) contri-
butions, employment insurance
(EI) premiums, Quebec Parental
Insurance Plan (QPIP) premiums
or income tax were required to
be deducted or if their remu-
neration exceeded $500. Besides
wages and salary, remuneration
includes bonuses, commissions,
taxable benefits and allowances,
and other payments.
Complete T4As to report
pension or superannuation pay-
ments, lump-sum payments, self-
employed commissions, or other
income described in the Canada
Revenue Agency's (CRA) guide
Deducting Income Tax on Pen-
sion and Other Income, and Fil-
ing the T4A Slip and Summary
(RC4157) if the amount was
more than $500 or you deducted
income tax.
If you paid amounts to non-
residents for services rendered
in Canada that they did not per-
form in the ordinary course of
employment, report them on a
T4A-NR. If you paid or credited
pensions, annuities or invest-
ment income to non-residents,
trusts or corporations, use form
NR4 to report the amounts. The
filing deadline for NR4s is April
3 since the normal March 31 due
date falls on a Saturday; however,
as a best practice, try to submit
the slips by March 29.
Employers with Quebec pay-
rolls must also prepare a year-
end information return for
Revenu Québec. It requires em-
ployers to complete RL-1 forms
for employees who reported to
work at their place of business in
Quebec or who were paid from
their business in Quebec if they
were not required to report to
work. Use RL-2s to report retire-
ment and annuity income.
When completing forms, re-
port earnings based on the year
paid, not on the year the employ-
ee earned them.
For T4 boxes 16 and 17, the
2017 maximum employee CPP
contribution is $2,564.10. For
QPP, it is $2,797.20. On an RL-1,
report QPP contributions in box
B. Do not report CPP contribu-
tions in box B. Instead, enter
code B-1 in one of the boxes in
the Renseignements complé-
mentaires area, followed by the
amount of CPP contributions.
For T4 box 18, the maximum
employee EI premium for 2017
is $836.19 for employees in all
parts of Canada, except Que-
bec. For Quebec employees, it is
$651.51. On an RL-1, use box C
to report EI premiums.
In T4 box 24, report the total
amount used to calculate the
employee's EI premiums, up to
$51,300, the maximum insur-
able earnings for 2017. If the
employee had no insurable earn-
ings, enter "0."
In T4 box 26, enter the em-
ployee's C/QPP pensionable
earnings for the year, up to
$55,300, the maximum for 2017.
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