T4 Summary of Renumeration Paid

T4 Summary of Renumeration Paid

  • Employee’s Income:

    “Base pay” refers to regular compensation received by an employee for effectively just showing up. Employers may pay base pay as a salary, an hourly wage or for piece work. … Base pay, in more specific terms, refers to what an employee makes per hour, week or completed project.

  • Employee’s CPP Contributions:

    An employee who is between 65 and 70 years old may elect to stop contributing to the CPP by submitting to you form CPT30 Election.

  • Employee’s EI Premiums:

    Each year, we give the maximum insurable earnings and rate for you to calculate the amount of EI to deduct from your employees. You have to deduct EI premiums from insurable earnings you pay to your employees. In addition, you must pay 1.4 times the amount of the employee’s premiums.

  • Pension Adjustments:

    If your client participates in a company-sponsored registered pension plan (RPP) or deferred profit-sharing plan (DPSP), he or she will have a pension adjustment (PA) entered in box 52 of the T4 slip. The PA represents a mandatory deduction applied to the taxpayer’s RRSP contribution room for the next calendar year.