T1 vs T4 in Canada: What Is the Difference?
A plain-language comparison of Canada's T1 income tax return and T4 employment slip, including who prepares each document and what business owners need to do.
Quick answer
What Calgary business owners should know
- A T1 is an individual's income tax and benefit return; a T4 is an information slip reporting employment remuneration and deductions.
- An individual files a T1 with the Canada Revenue Agency, while an employer prepares T4 slips and a T4 Summary for its employees and the CRA.
- The T4 supplies information that may be used on a T1, but the two documents are not interchangeable.
- Employers and individuals should confirm their current filing dates directly with the CRA because weekends, holidays, and individual facts can affect a deadline.
T1 and T4 compared side by side
The names sound similar, but the documents have different jobs. The T1 General is the form an individual uses to report income, claim applicable deductions and credits, and calculate income tax and benefits for a tax year. The CRA publishes a T1 income tax package for each province and territory because provincial and territorial calculations form part of the return.
A T4 Statement of Remuneration Paid is prepared by an employer. It reports employment income and amounts such as income tax, Canada Pension Plan contributions, and Employment Insurance premiums when applicable. The employer gives the employee a copy and files the related T4 information return with the CRA. The employee normally uses the T4 figures, together with any other relevant slips and records, when completing the T1.
| Question | T1 income tax return | T4 employment slip |
|---|---|---|
| What is it? | An individual's income tax and benefit return | An employer information slip for remuneration and deductions |
| Who prepares it? | The individual or an authorized tax preparer | The employer or its authorized payroll provider |
| Who receives it? | The CRA receives the filed return | The employee receives a copy and the CRA receives the information return |
| What period does it cover? | The individual's tax year | Employment remuneration for the calendar year shown on the slip |
| How are they connected? | The return can include amounts reported on T4 and other slips | The slip supplies information; it does not replace the T1 |
What an employer is responsible for
An employer needs accurate payroll records throughout the year. That includes gross pay, taxable benefits, pensionable and insurable earnings, deductions, remittances, and employee identification details. At year-end, the employer uses those records to prepare the applicable slips and summary. CRA guidance generally sets the T4 filing and distribution deadline at the last day of February following the calendar year being reported, subject to the CRA's current due-date rules.
A T4 is not a substitute for regular payroll remittances. Employer remittance deadlines depend on the remitter type assigned by the CRA, and late or incorrect amounts can create separate consequences. Before filing, reconcile the T4 totals to payroll registers, general-ledger payroll accounts, and CRA remittance records. Correct discrepancies before issuing slips where possible, and follow the CRA amendment process when a filed slip requires correction.
Practical checklist
- Reconcile annual gross pay, taxable benefits, deductions, and remittances.
- Verify employee names, addresses, and social insurance numbers are handled accurately and securely.
- File the T4 information return and distribute employee copies by the applicable CRA deadline.
- Retain supporting payroll records and use the CRA process for amendments or cancelled slips.
What an individual should do at tax time
An individual should gather every relevant information slip, not only a T4. Depending on the person's circumstances, that package may include slips for pensions, investments, benefits, self-employment records, registered plans, tuition, or other income and deductions. The T1 brings the applicable information together. If an expected T4 has not arrived, the CRA directs taxpayers to contact the employer and review available information in their CRA account rather than simply omitting the income.
The usual T1 filing date and the date a balance is due are not always the same for every taxpayer. For example, the CRA publishes a later filing date for certain self-employed individuals and their spouses or common-law partners, while generally keeping the balance-due date earlier. Estates, emigrants, deceased taxpayers, and other situations can have different rules. Use the CRA's current dates page and obtain advice based on the person's actual facts before relying on a general calendar date.
Official sources
This guide was prepared from the official sources below. Open them to verify the current rule and review exceptions relevant to your situation.
