---
title: "What is t4?"
description: "T4 explained in plain English: definition, how it works, an example, and how it appears in QuickBooks and Xero."
url: https://ledgerbpo.com/glossary/t4/
updated: 2026-09-11
publisher: LedgerBPO (SS Support Network LLC)
language: en-US
---

# What is t4?

Glossary

A T4 is the Canadian slip employers issue to each employee showing total employment income, deductions and taxes withheld for the calendar year, used to file a Canadian personal income tax return. Employers must issue T4s to employees and file them with the CRA by the last day of February.

Updated September 2026

## How t4 works

Employers generate a T4 for every employee paid during the year, summarizing gross employment income, CPP and EI contributions withheld, income tax deducted, and other amounts such as pension adjustments. Payroll software produces the slip from the same data used for each pay run, so accuracy depends on payroll being coded correctly throughout the year.

T4s are given to employees, typically electronically through a payroll portal or by mail, and a summary is filed with the Canada Revenue Agency. Employers must meet the last-day-of-February deadline for both distributing slips and filing the CRA summary, and late filing can result in CRA penalties based on the number of slips involved. Employers correct errors discovered after a T4 has already been filed by submitting an amended slip to the CRA rather than simply reissuing a new original, since the CRA tracks amendments separately from initial filings.

## Example

An employee earned $62,000 in gross salary during the year, with $3,300 in CPP contributions, $850 in EI premiums and $9,400 in income tax withheld through payroll. Their employer issues a T4 showing these amounts in the corresponding boxes by the last day of February, and the employee uses it to file their personal tax return. If the employer later discovers a $500 taxable benefit was left off the original T4, it files an amended slip with the CRA reflecting the corrected income and deduction totals.

## T4 in QuickBooks Online vs Xero

Canadian payroll add-ons for QuickBooks Online and Xero both generate T4 slips directly from year-round payroll data and support electronic filing with the CRA. Wagepoint, a payroll platform commonly paired with either accounting system in Canada, also produces T4s automatically once the final pay run of the year is processed.

## Related terms

- [T4A](https://ledgerbpo.com/glossary/t4a/)
- [T5](https://ledgerbpo.com/glossary/t5/)
- [Payroll Liabilities](https://ledgerbpo.com/glossary/payroll-liabilities/)
- [All terms](https://ledgerbpo.com/glossary/)

## How LedgerBPO handles t4

We reconcile your payroll data throughout the year so T4 preparation at year end is a review step, not a scramble, then prepare slips for your CPA's review before filing. Only your CPA or a registered EFILE transmitter files on your behalf, since we provide preparation support, not tax filing itself.

[W-2, 1099, T4 and P60 data ready to file](https://ledgerbpo.com/services/year-end-slips/)

Next step

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Source: https://ledgerbpo.com/glossary/t4/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt