T4, T4A and ROE — Canadian payroll year-end
Year-end T4 slips, T4A for contractors, Record of Employment for terminations
Year-end payroll in Canada involves several key forms: T4 for employees (federal + provincial tax slips), T4A for contractors over $500/year, and Record of Employment (ROE) for terminations and interruptions of earnings. Each must be filed within specific deadlines with CRA and Service Canada. This guide covers the requirements, electronic filing, and common mistakes.
T4 slips — Statement of Remuneration Paid
T4 issued to every employee receiving employment income, including bonuses, commissions, vacation pay. Federal portion (boxes 14-26) + provincial portion (boxes 50-52 for Quebec, others). Due to CRA + employee by last day of February following the calendar year. Filing methods: paper for small employers (under 51 slips), XML web services for medium, automatic for large via certified software.
T4A slips — Statement of Pension, Retirement, Annuity, and Other Income
T4A for contractors paid $500+ in calendar year (box 048 fees for services), and for various pension/annuity income. Box 048 is the key one for contractors — it's the equivalent of T4 box 14 for paid contractors. Same February deadline as T4. Annual contractor totaling under $500: no T4A required.
Record of Employment (ROE)
ROE issued when an employee experiences an interruption of earnings (termination, layoff, leave). Required for EI claim. Must be issued within 5 business days of last day worked. Electronic filing via Service Canada ROE Web is fastest. Paper ROE accepted but slower. Wrong ROE info can delay employee's EI claim and trigger employer audit.
Quebec-specific: RL-1 and CSST
Quebec employees also get RL-1 (Relevé 1) from Revenu Québec — equivalent to T4 with Quebec-specific tax info. Submission to Revenu Québec separately. CSST/CNESST (Commission des normes, de l'équité, de la santé et de la sécurité du travail) premiums calculated separately from CRA payroll deductions.
Common mistakes and CRA audit triggers
Top mistakes: (1) Late ROE issuance — delays EI, triggers Service Canada audit. (2) Misclassifying employees as contractors (CRA factors test). (3) Forgetting provincial labour code variations (Quebec ESA vs Ontario ESA vs BC vs Alberta). (4) Wrong reason codes on ROE (e.g. K vs M for termination). (5) Not validating SIN before T4 generation.
How 4b2b helps
Frequently asked questions
When are T4s due?
Last day of February following the calendar year (so 2026 T4s due 28 Feb 2027). Late penalty: $100 to $7,500 depending on number of slips and lateness.
What's the difference between T4 and T4A?
T4 = employees (paid by salary/wages, subject to source deductions). T4A = contractors (paid for services without source deductions, over $500/year).
When must I issue an ROE?
Within 5 business days of an employee's last day worked due to interruption of earnings (termination, layoff, sick leave over 7 days, maternity/parental leave start, etc.).
Can I file T4s electronically?
Yes — XML web services via CRA Internet File Transfer for under 50 slips. Over 50 slips mandatory electronic. Most accounting software certified to generate compliant XML.
Quebec employees — RL-1 vs T4?
Both. T4 to CRA federally, RL-1 (Relevé 1) to Revenu Québec for the provincial portion. Quebec contributions (RQAP, QPP) handled separately from CPP.
Related solutions & industries
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