What is a T4 Slip and what should you expect to see included on a T4 slip?
A T4 slip, or a “Statement of Remuneration Paid”, is a tax document issued by employers to employees by the end of February each year. It shows the amount of gross pay received by the employee (including any wages, commissions, bonuses, honorariums, tips and taxable benefits) before deductions, as well as the amount of EI, CPP, and taxes withheld, for the preceding January to December tax year. Any students who worked for the University of Waterloo through campus jobs such as a teaching assistant, etc., may find their T4 in the Workday system. You will also receive a T4 slip for any co-op term you have worked. The income on this document must be included on your personal tax return to be filed by April 30.
What is a T2200 form and why might you need one?
A T2200 form, or a “Declaration of Conditions of Employment”, is a tax document provided by employers confirming the nature and amount of expenses an employee had to pay for work purposes. You may need a T2200 if your employment contract required you to pay expenses out-of-pocket for your job. If eligible per CRA guidelines, it may allow you to deduct employment expenses from income, which will then reduce your taxes payable. While eligible expenses may include vehicle, cell phone, and home office expenses for employees regularly working away from their employer, they do not include costs to travel to and from an office, or for personal items including most tools and clothing. You can find the T2200 form on the CRA website, which lists questions related to your employment expenses. The T2200 form does not have to be included in the tax return sent to the CRA, however, one should be kept on file for every tax year within the past six years should the CRA request it.
- Priya, Young Tax Professional