Editor's note: This blog post was updated in January 2024 for accuracy and comprehensiveness.
Canadian Payroll Resources for Employees
When you have the right resources at the right time, your year-end goes a lot smoother. Every year, we make it our priority to gather all the essential up-to-date information we can find to ensure you have everything you need for an easier year-end.
In this post, you’ll find several sharable resources designed to help you, your managers, and your employees successfully file their income taxes for 2023, all while delivering a seamless payroll experience.
We hope these year-end tools will lighten the load for your hardworking payroll team and keep everyone on the same page.
What’s new with your first pay of 2024?
- CPP/QPP contributions, EI, and QPIP premiums are reset in the New Year
- Familiarize yourself with the new enhanced CPP (CPP/QPP, eCPP2/eQPP2) changes
- Employees should complete a new TD1 form and submit it to payroll if there's changes to their tax claim amounts or they want additional taxes deducted from their 2024 pay.
- Refer to our Payroll Year-End Guide for any Federal or Provincial tax changes you need to know about
- Stay up to date with any minimum wage changes for your province
- In most jurisdictions, the 2023 tax slip filing due date is February 29, 2024
Federal TD1 Changes for 2024
*The amount is indexed after 2023. For individuals whose net income is greater than the amount at which the 29% tax bracket begins ($150,473 for 2020), the increase in the basic personal amount gradually phases out so that the basic personal amount for individuals whose income is greater than the next tax bracket threshold ($214,368 for 2020), remains unchanged ($12,298 for 2020) and continues to be indexed.
Similar increases were announced for the maximum spouse or common-law partner amount and the maximum amount for an eligible dependant. The phase-out of the increase is based on the individual’s income rather than the income of the dependant.
Provincial TD1 Changes for 2024
**For 2024, employers are to use the maximum Nova Scotia basic personal amount (BPANS) of $11,481 for all employees unless the employee provides a new Form TD1. If the BPANS formula was previously implemented on your payroll system, you can continue to use it.
***For 2024, employers are to use the maximum Yukon basic personal amount (BPAYT) of $15,000 for all employees unless the employee provides a new Form TD1. If the BPAYT formula was previously implemented on your payroll system, you can continue to use it.
Minimum Wage Info
*Beginning April 1, 2024, the minimum wage rate will be adjusted with inflation plus an additional 1% annually.
**The minimum wage is adjusted annually using a formula based on the percentage change in the Consumer Price Index (CPI) for Yellowknife and the percentage change in the average hourly wage (AHW) in the NWT for the preceding calendar year.
†Special minimum wage rates for those under 18, homeworkers, and hunting/fishing/wilderness guides also increasing.
††Minimum wage increases every year on April 1. This annual increase is tied to inflation, calculated using the Consumer Price Index (CPI).
Employee communications for Canadian payroll year-end
Now that you’re in full swing of getting those tax slips issued before the end of February, your inbox might be starting to pile up with questions from employees. Questions like, “What does Box 40 mean on my T4?” or “When do I get my T4?” Don’t sweat it. To educate employees on what they can expect regarding payroll year-end, share the tax slip guides and communications templates provided below.
Interactive 2023 tax slip guides for Canadian employees
Frequently asked questions from employees for 2023 year-end
Sometimes internal communications get missed. If your employees don’t receive or see your communications regarding 2023 tax slip information or what they can expect from their first pay of 2024, we’ve put together a comprehensive FAQ of the most common questions employees ask their payroll team.
Employee tax slip FAQ for payroll year-end
1. Why do I have two T4 Slips?
If you have received more than one T4 from us, there are a few possible reasons:
- You worked at different locations and/or different divisions of the company which required us to produce a T4 for each business number you worked in
- You worked or earned income in different ways, for example, you were on contract for a period of time and then gained full-time employment with us
- You worked for the company in two different provinces during the year
If any of these apply, and you received the two slips together, make sure you include both slips in your tax return.
2. What is box 40 on my T4?
Box 40 includes Taxable Benefits you’ve received in the year as well as earnings and allowances. The company pays Taxable Benefits on your behalf and may include life insurance, wellness spending accounts, flat-rate car/cell phone allowances, etc.
Taxable Benefits are identified as such on your pay statements. When you add up the items identified as Taxable Benefits on your pay statements, you should arrive at the total in box 40. If your total is not the same as box 40, please contact your payroll team or manager.
For more information on how taxable benefits and allowances appear on your T4, go to the CRA’s Benefits and Allowances Chart.
3. Why does my income in box 14 on my T4 seem high?
Box 14 includes your gross income as well as all applicable taxable benefits that are shown in Box 40. The amount shown in Box 14 should be added to your gross year-to-date income from your final year-end pay statement. The total should equal the amount shown in Box 14. If this is not the case, please contact your payroll team.
If your company pay frequency is bi-weekly or weekly, there is an extra pay period so the amount in Box 14 may be slightly higher than you expected.
4. Why does my income in box 14 on my T4 seem low?
You may have received two or more T4s. The amount shown in Box 14 in each T4 should be totalled and equal to your final December pay statements year-to-date earnings, plus the total of taxable benefits recorded in Box 40 of each T4. If this is not the case please contact your payroll team or manager.
For more information on how taxable benefits and allowances appear on your T4 see the Benefits and Allowances Chart.
5. What is the difference between a T4 and a T4A?
The Canada Revenue Agency requires that different tax slips be used to report specific types of income.
- A T4 is a tax slip issued to report employment income, taxable benefits, and retiring allowances
- A T4A is a tax slip for income such as pension, lump sum payments, and other income as defined by the CRA
6. How can I get a reprint of my tax slip if I lose it?
You can print copies of your tax slips from the Avanti Self-Service Portal, if available. You can also access them from your personal CRA or RQ account; they’ll be available once they’ve had a chance to process the slips.
Otherwise, please contact your payroll team or manager and request another copy.
7. Do I need to print my online tax slips?
If you are filing your taxes electronically, printing the slip is entirely optional since you aren’t required to mail copies to the CRA or RQ. You can always have access to the slips through your Avanti Self-Service Portal should you need them now or in the future.
8. Will the Canada Revenue Agency (CRA) accept a self-printed/online tax slip?
T4/T4A/NR4 forms are submitted to the CRA by the employer on behalf of the employee.
In the case of a personal audit, the CRA accepts self-printed tax slips from the Employee Self-Service Portal. The form generated matches all specifications from CRA and will look identical to a printed T4 or T4A.
9. What if there is incorrect information on my T4/T4A?
If your Social Insurance Number is incorrect, or you believe the financial information on your tax receipt is incorrect, please contact your payroll team for them to review. If there is an issue, a new tax receipt may need to be issued. If your address is incorrect, simply enter the correct information on your tax return.
10. How do I arrange to make changes to my tax claim amounts or have additional taxes deducted from my pay in 2024?
You will need to complete a new Provincial and Federal TD1 for 2024, indicating the additional amount you’d like deducted. You can access the new TD1s through the CRA website. Once completed, please submit your TD1 forms to your payroll team.
11. Why are over half of my tax slip boxes empty?
Only the tax boxes relevant to you will be completed. But if you feel there is a box that should have a value in it please contact your payroll team.
12. Why is my income in box 14 greater than the CPP pensionable and EI insurable earnings?
Box 14 is the sum of all income you received which was subject to income tax. There is no limit on the amount of income subject to tax deductions.
13. Why can’t I find my 2023 T2200S?
The simplified T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19, is no longer in effect for the 2023 tax year. If you worked from home or incurred any other employment-related expenses during 2023, your payroll team may provide you with a standard T2200.
14. Who should I contact if I have a question?
If you have additional questions or concerns, please contact your payroll team.
To facilitate a response to your query, please have your T4 and/or T4A, as well as your final December 2023 pay stub available.
15. I need help filing my tax return.
The Canada Revenue Agency can help you if you're having a tough time filing your income tax return.
If you are a student, senior, person with a disability, a newcomer to Canada, or a low-income earner with a simple tax-filing situation, contact Community Volunteer Income Tax Program (CVITP) at 1-800-959-8281 to ask for help. CVITP volunteers work with members of local community organizations who can help you complete and file your return.
Frequently asked questions from employees 2024 first pay period
1. Why is my paycheque less in January than it was in December?
Check your December 2023 pay statement to see if you maxed out on your CPP and EI contributions in 2023. Remember that CPP and EI restart every January.
Additionally, CPP, QPP, EI, and QPIP have increased, which means more will be taken off each paycheque. The new employee annual maximum contributions for 2024 are:
- CPP: $3,867.50
- eCPP: $188
- QPP: $4,160
- eQPP: $188
- EI: $1,049.12
- Québec EI: $834.24
- QPIP: $464.36
2. I want to contribute to my RRSP in the first 60 days of the new year; what is the RRSP annual contribution limit for 2023?
The maximum RRSP annual contribution limit for 2023 is $30,780.
3. How much am I allowed to put into my TFSA during 2024?
The TFSA limit for 2024 is $7,000.
4. Will the minimum wage be changing in 2024, and if so, when and by how much?
Check out this guide to minimum wages and planned increases across Canada.
5. Why do I need to review my TD1s each year?
A new TD1 ensures that you inform us of any changes in your life that could impact your income tax calculations. This could include having a new dependent, becoming a caregiver, or recently enrolling in school. If changes are needed, sending new TD1s to your payroll team ensures your taxes will be calculated accurately at the source, your pay.
6. How do I prevent the additional tax from coming off my cheque this year?
If you were previously having additional tax deducted but want to change the amount, or no longer want additional tax deducted, then complete a new federal TD1 form and send it to your payroll team.
Additional payroll legislative updates and links
Here you’ll find provincial and federal information on payroll deductions, payroll year-end employer kits, and more.
Additional Payroll Year-End Reading Links
Everything you need for 2023 year-end
You’ve got a lot on your plate and staying organized is key. Don’t stress, we’re here to help you every step of the way. Use our updated year-end resources and checklists to successfully finish 2023 and easily process your first pay of 2024.
