T4 question

[mmouse]

I just got my T4 and want to verify it's correct, since my employer doesn't give out payslips.

On my T4 there are 5 boxes filled out:

14 - total employment income
16 - employee's cpp contributions
18 - employee's EI premiums
22 - income tax deducted
24 - EI insurable earnings

Is it correct that: box 14 minus 16 minus 18 minus 22 should equal the total net pay I received during the year?

 

[tboy]

What do you mean your employer doesn't give out pay slips? You should at least get an itemized distribution of your pay on the cheque stub that comes attached to the cheque. If you have direct deposit you should get a statement/cheque for that as well.

What's he do, just hand you a wad of cash?

 

[mmouse]

That's right, no paystub. The fucker just hands me a check every 2 weeks. It has no breakdown of deductions. Luckily it's the same amount each time, so multiplying it by 26 I know how much I've got over the year.

 

[mmouse]

Not necessarily, Box 14 could include non-cash, but still taxable benefits. e.g., if you have a company car, attended conferences or training programs, received certain perquisites, etc.

I think that the benefits are supposed to be itemized separately in another box.

Thanks. So I'm pretty sure there are no taxable benefits. We have on health plan or any other benefits and I never travel. The total in box 14 does represent my gross annual income plus the bonus. In this case, my net salary should have been this minus the income tax, EI and CPP boxes on my T4?

I believe the employment standards act specifies that you must receive a pay stub itemizing certain details.

Make an anonymous call to the MInistry of Labour and ask yourself.

You are right - thanks for bringing this to my attention.
http://www.labour.gov.on.ca/english/es/guide/guide_3.html

 

[Anynym]

Canada Revenue Agency maintains a lot of useful information and tools online, including help for small employers in filling out a T4 form. They should be able to give a definitive answer fairly quickly.

 

[mmouse]

I think so - I need to double check my bank statements to be sure.

 

[tboy]

Thanks. So I'm pretty sure there are no taxable benefits. We have on health plan or any other benefits and I never travel. The total in box 14 does represent my gross annual income plus the bonus.

So you got your bonus?????

 

[K Douglas]

If there were any taxable benefits included in box 14 they would also appear at the bottom in box 40. However, it looks like your employer prepared the T4 himself/herself so there's a good chance it wasn't filled correctly.

To answer your question the answer is yes.

 

[mmouse]

So you got your bonus?????

I got about a 10% of what I'm supposed to get.

 

[Capital Amatuer]

Some useful sites

You can use the On-line Payroll to figure your paycheque and tax with holding here;
https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English

If you made more than $44,900 you hit the maximum annual contribution of $2,049.30 and your employer should have stopped deduction CPP for the balance of 2008 (your net pay should have increased, given the gross pay is the same every paycycle)
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/cpp-rpc/cnt-chrt-pf-eng.html

If you earned more than $41,100 you hit the annual maximum of $711.03 and again your employer should have stopped deducting EI premiums (again your net pay should have increased)
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ei/cnt-chrt-pf-eng.html

Most emplyers don't pay attention if they do payroll themselves. Best to have a payroll service that know the rules. If you did over-contribute, it'll be a refundable credit on your tax return. But no refund to the employer, unless he files a request for refund.

My $0.02 worth (less deductions)

CA

 

[mmouse]

Thanks for the info. Yes I have $2049.30 and and $711.03 in boxes 16 and 18 respectively. I should have hit those limits half way through the year, but my biweekly net pay never changed.

After looking at my bank statements the difference between my T4 net and actual net is only $30 or so. I have no idea what this clown was doing, but it doesn't look like he was stealing - unless he didn't remit everything to the CRA.

 

[Capital Amatuer]

Not to fuel the fire

but if you reached the maximum CPP & EI 1/2 way through the year, and your net pay stayed the same, your employer effective screwed you on about $2,700. Effectively he lowered your gross pay for the amount of the CPP & EI savings. Box 14 should be about $2,700 lower than what you think your annual salary is. Which I would hazzard to guess is about $88,000 - $92,000. With an artificially lower salary and taxes remaining the same, you overpaid the taxes. Not much but you did.
Link this to WSIB which now shares information with CRA and employers better learn how to do payroll correctly.