Income Tax Forms - Guidelines

Archived Financial Policies

For information on Archived Financial Policies or to locate a specific policy, please provide any applicable information regarding the nature of your request and send an email to NC-CFOB-Financial_Policy_Questions_Politique_Financière-GD. A member of the Financial Policy team will get back to you to provide assistance.

Date last revised: November, 2010

Please Note: This policy/document is currently under review and is being updated to reflect new procedures and terminology associated with the implementation of myEMS (SAP)

Please note that this policy will apply to both Service Canada and Human Resources and Social Development Canada (HRSDC) hereinafter referred to as the "Department" or "Departmental".

1. Objective

These guidelines will prescribe the requirements for the emission of T4, T4A, T4A-NR, T1204 and Relevé 1 forms in the Department pursuant to the Income Tax Act (ITA).

2.Statement

2.1. General

2.1.1 The Income Tax Act (ITA) prescribes that every person (or organization), who makes specific payments described in the Act, to file an information return in the form of T4, T4A, T4A-NR, T1204 and Relevé 1 by the last day of February following the year in which the payment was made.

2.1.2 With respect to the Department business, the payments which would require information returns to be filed with the Canada Customs and Revenue Agency (CCRA) pertain to salaries, wages and other remuneration or awards paid to employees, employee benefits pursuant to the Employment Insurance (EI) Act and corresponding Regulations as well as contractors providing services to the Department.

2.1.3 The emission of the information returns may take the form of conventional paper based forms or may be produced electronically on mainframes or by PC/Web based programs. Accordingly, the information returns pertaining to salaries and wages are generated automatically through Public Works and Government Services (PWGSC) facilities. The Department produces information returns for payments pursuant to the EI Act and other acts and legislation such as the Canada Pension Plan, the Old Age Security Act and the Labour Adjustment Benefit Act through its own mainframe processing facilities. In addition, information returns for employee allowances and awards are produced by PC/Web based systems in each Region and NHQ produces the required information returns for government services (contractors) on a national basis.

2.1.4 It is the responsibility of the National and Regional Financial Services to ensure compliance with the Federal ITA and the Quebec ITA and the emission of respective information returns in the required time frame. Accordingly, the Director General of Corporate Accounting and Reporting/CFOB in NHQ and the Regional Director General/Director shall be responsible for the recording and reporting of taxable income, other remuneration and benefits except amounts paid through the PWGSC Central Pay Offices.

2.1.5 Mainframe and PC/Web programs shall be modified as required (annually) to meet CRA specifications

2.1.6 The table below is a listing of payment types for which information returns (T4As) are frequently issued in the Department.

Payment type	Reference to Income Tax Bulletin
Moving expenses and Relocation benefits: -Non-accountable incidental relocation benefits in excess of $650 -All Other Relocation benefits	CRA Guide T4 produced by NHQ and Region
Employee's Fringe Benefits Moving Expenses	IT-470R IT-178R
Membership dues which have been reimbursed to employees: -Accounting Designation under FI collective agreement -All Other Membership (NHQ and Region)	IT-211R, IT-158R2
Tuition fees which have been reimbursed	IT-516R2
OIC Appointee’s remuneration (Board of Referees, honorarium)	IT-196R2, IT-196R2SR
Processing Responsibilities for Source Deductions from Board of Referee Per Diems	Memorandum
Personal use of departmental vehicles	IT-63R5
Awards for employees' suggestions and Inventions (excludes such items as plaques, trophies and other memorabilia)	IT-340R, IT-340RSR, IT-75R4
Government service contracts	T1204, IT-92R2

Notes:

1. Any GST/HST paid to contractors (Individuals, Partnerships, Corporation) should not be included in the T4A as it is not considered income. These taxes will be remitted to CRA by the contractor (Individuals, Partnerships, Corporation).

2. Foreign contractors may request tax exemption from the Department. The Department must request a CRA authorisation to do so. Otherwise T4A-NR and a NR4 in accordance to regulation 105 of the ITA must be completed for non-resident contractors

3. Further to the above table, the CRA published an Forms and publications listed by client group on their web site.

2.1.7 It is possible and indeed permissible to provide more than one T4/T4A to individuals for unrelated payments and from different sources.

2.2 Uses of the Information Returns

This section will describe the uses of the various information returns and its generic completion requirements. It should be noted that the completion requirements might be subject to annual revision based on the changes imposed by CRA.

2.2.1 Information requirements common to all forms

Each information return must show:

the name and address of the taxpayer
the taxpayers social insurance number
taxable amount (or benefit)
the amount of income taxes (federal and Quebec income tax) and/or other deductions withheld as applicable
payers name (description and/or registration number)
if applicable: exemption code for Canadian Pension Plan (CPP), Employment Insurance (EI) or Provincial Parental Insurance Plan (PPIP).

2.2.2 Types of forms and uses

T4 Statement of Remuneration Paid	To report salaries wages and other taxable benefits paid to an employee or OIC appointee. Furthermore the form is used to report deductions such as Canada Pension Plan premiums, Employment Insurance, superannuation premiums, union dues and other deductions if applicable
T4A Statement of Pension, Retirement, Annuity and Other Income	To report pension or superannuation income, lump sum payments, income from annuities, other income, self-employed commissions and charitable donations as well as income tax deducted. Essentially this form is a multipurpose form to allow reporting of income and corresponding taxes paid for items not covered by the T4.
T4A (OAS)-Statement of Old Age Security	This form is being utilized to report Old Age Security benefits received, taxes paid and other information specific to the OAS program.
T4A (P)-Statement of CPP Benefits	With this form CPP benefits and corresponding taxes deducted are reported.
T4E-Statement of Employment Insurance Benefits	This form is incorporated into the ‘Statement of Benefits Repaid’ form and is produced automatically by the Departmental Pay System
Relevé 1- Slip information	To report income from salaries, other benefits, commissions and other income as well as Quebec income tax withheld and other deductions. This is a form required by Revenue Quebec and is utilized for employees who report to work at the employer’s place of business located in the Province of Quebec.
T4A-NR - Statement of Fees, Commissions or Other Amounts Paid to Non-Residents for Services Rendered in Canada	Information slip for payers and agents on how to report on a statement fees, commissions, or other amounts paid to non-resident for services rendered in Canada.
NR4 – Statement of Amounts Paid or Credited to Non-Residents of Canada	Information for payers or agents who make payments to non-residents of Canada.
T1204 – Government Service Contract Payments	Information for the construction industry and federal departments, agencies, and Crown corporations who make contract payments.

2.3 Information Reporting Requirements

CRA and Revenue Quebec require that the information on the respective information returns be submitted in a format acceptable by CRA and Revenue Quebec.

For information regarding electronic filing please consult the following links:

a) CRA - Filing Information Returns electronically

b) Revenue du Quebec