T4, ROE, and Year-End Payroll: A Small-Employer Checklist

Prepared by Toronto Tax & Accounting Solutions Inc. This article provides general information and may not apply to every tax situation.

Short answer: before the year closes, small employers should confirm each employee’s legal name and home address, review year-to-date payroll totals, reconcile deductions to the remittances sent to the CRA, review any taxable benefits, make sure a Record of Employment (ROE) was issued for everyone who had an interruption of earnings, and keep the supporting records. The CRA’s general rule is that T4 slips go to employees and the T4 return is filed by the last day of February after the calendar year, or the next business day if that falls on a weekend or CRA-recognized public holiday. What you need depends on your staff and pay practices.

This checklist is designed to be worked through in November and December, before your final pay run, so January is about filing rather than fixing. For the basics of source deductions and remittance schedules, see our guide to payroll in Canada.

1. Employee information

Errors in names and addresses are easy to prevent now and tedious to correct later.

• ☐ Legal names: confirm each employee’s last name, first name and initials match their legal name. The CRA asks for names without titles such as “Mr.” or “Director.”
• ☐ Home addresses: confirm a current home address, including province and postal code, for every current and former employee who was paid this year.
• ☐ Province of employment: confirm which province each employee reports to. Employees who worked in more than one province or territory need a separate T4 slip for each.
• ☐ SIN on file: confirm you have a Social Insurance Number recorded for each employee. If an employee never provided one, the CRA still requires you to file their T4 on time, and you should be able to show you made a reasonable effort to get it.
• ☐ Former employees: make sure you have a mailing address or other way to deliver slips to people who left during the year.

Collect or update this information in person or through a secure method. Do not ask employees to email their SIN.

2. Payroll totals

• ☐ Year-to-date gross pay for each employee agrees with your payroll register.
• ☐ Bonuses, vacation pay, commissions and tips you control are included where they belong.
• ☐ Timing: income is reported on the T4 for the year it was paid, not the year it was earned. A January payday for December work belongs on next year’s T4.
• ☐ Pensionable and insurable earnings are tracked for each employee. The T4 requires amounts in these boxes even when they match employment income.
• ☐ Manual cheques and off-cycle payments made outside your usual payroll run have been entered.

3. Reconcile deductions to remittances

This is the check that catches most year-end surprises.

• ☐ Add up the CPP contributions, EI premiums and income tax you deducted from employees for the year, plus your employer share of CPP and EI.
• ☐ Compare the total to what you actually remitted to the CRA for the same calendar year, using your remittance confirmations and CRA statements of account.
• ☐ Investigate any difference before filing. A missed remittance, a payment applied to the wrong period, or a manual cheque that never reached payroll are common causes.
• ☐ Remember that the T4 Summary compares total deductions with remittances, and a mismatch shows up as a balance due or an overpayment.

Our year-end bookkeeping checklist explains how this payroll reconciliation fits into closing your books.

4. Taxable benefits and other slip details, where relevant

Not every employer has these, but if you do, they need to be reported correctly.

• ☐ Taxable benefits and allowances: personal use of a company vehicle, board and lodging, low-interest or interest-free loans, employer-paid RRSP or FHSA contributions, gifts and other perks may be taxable. Use the CRA’s taxable benefits chart to check each one.
• ☐ Dental benefits (box 45): for calendar year 2023 and later, the CRA requires employers to indicate whether each employee or their family members were eligible, on December 31, for dental coverage you offered.
• ☐ Union dues, pension contributions or payroll donations deducted from pay are recorded for the right boxes.
• ☐ Other slips: some payments do not go on a T4 at all. Certain amounts belong on a T4A, and businesses whose main income is construction report payments to subcontractors on a T5018. Sort these out now rather than in February.

5. Records of Employment (ROEs)

An ROE is issued when an employee has an interruption of earnings, including when employment ends, and when an employee goes on leave because of pregnancy, illness, injury or adoption, is laid off, takes leave without pay, or is dismissed.

• ☐ List everyone who left or had an interruption of earnings this year, and confirm an ROE was issued for each.
• ☐ Check that insurable hours and earnings on each ROE agree with your payroll records.
• ☐ Keep copies with the employee’s file.

Timing depends on how you issue ROEs and how often you pay. For electronic ROEs with weekly, biweekly or semi-monthly pay periods, the general rule is no later than five calendar days after the end of the pay period in which the interruption occurs. Monthly pay periods and paper ROEs have different rules. Confirm the timing for your situation in Service Canada’s guide to completing the ROE and the CRA’s ROE page.

An employee leaving does not change the T4 due date. The CRA suggests giving departing employees a T4 for the year to date and including it in your T4 return.

6. Filing and giving out T4 slips

• ☐ Know the due date. The CRA’s general rule is that you give employees their T4 slips and file the T4 return on or before the last day of February following the calendar year. If that date falls on a Saturday, Sunday or CRA-recognized public holiday, the return is due the next business day. Confirm the exact date for the year on the CRA’s T4 employers’ guide (RC4120) before filing.
• ☐ Filing method: if you file more than five information slips of a type for the year, the CRA requires electronic filing.
• ☐ Delivery to employees: you need an employee’s written consent before sending a T4 by email. On paper, employees receive two copies. Do not print your payroll account number (box 54) on employee copies.
• ☐ Late filing: penalties can apply for filing late or for not giving slips to employees on time, so build in time for corrections.

7. Keep your records

• ☐ Keep payroll registers, timesheets, TD1 forms, remittance confirmations, ROEs, and copies of T4 slips and the T4 Summary.
• ☐ Store them so you can find them years from now. The CRA generally requires business records to be kept for at least six years from the end of the last tax year they relate to. See the CRA’s guidance on keeping records.

The checklist at a glance

Related resources

• Payroll New Client Setup Checklist (PDF)
• Payroll New Client Information Sheet (XLSX)

Frequently asked questions

When are T4 slips due?

The CRA’s general rule is that you give employees their T4 slips and file your T4 return on or before the last day of February following the calendar year. If that day falls on a Saturday, Sunday or CRA-recognized public holiday, the return is due the next business day. Check the CRA’s T4 guide for the exact date each year.

Do I need to issue an ROE when an employee quits?

Yes. An ROE is issued when an employee has an interruption of earnings, which includes when employment ends. It also applies to situations such as layoffs, dismissals, leave without pay, and leaves for pregnancy, illness, injury or adoption.

What if my payroll deductions do not match what I remitted to the CRA?

Find the difference before you file. Compare deductions and your employer share with remittance confirmations for each period. The T4 Summary compares total deductions with remittances, so an unresolved mismatch appears as a balance due or an overpayment.

Can I email T4 slips to my employees?

Only with the employee’s written consent. Otherwise, you can give paper slips, two copies per employee, or make them available through a secure electronic portal, and provide paper copies if an employee asks.

An employee never gave me their SIN. Can I still file their T4?

Yes. The CRA says you still have to file the T4 slip on time without the SIN. You should be able to show you made a reasonable effort to get it, because a penalty can apply otherwise.

Are T4s and ROEs extra in your payroll package?

No. T4 and ROE preparation are included in the Toronto Tax & Accounting Solutions payroll package, which starts at $100 before HST. Final pricing is confirmed in writing.

Official sources

• Canada Revenue Agency: RC4120, Employers’ Guide – Filing the T4 Slip and Summary
• Canada Revenue Agency: Record of Employment (ROE)
• Employment and Social Development Canada / Service Canada: How to complete the Record of Employment form
• Canada Revenue Agency: Determine if a benefit is taxable
• Canada Revenue Agency: Keeping records

Information checked against the sources above on September 29, 2026. Confirm the current T4 due date and ROE timing on the official pages at the time of filing.