What Are the Difference Between T4, T4A and T5 Slips?

Tax season can be confusing, but understanding the different tax slips you receive can make filing your taxes much easier. If you live and work in Canada, you may receive a T4, T4A, or T5 slip, depending on the type of income you earned during the year. Each slip serves a different purpose and helps the Canada Revenue Agency (CRA) track income and deductions. In this guide, we will explain what these slips are, who gets them, and how to use them when filing your taxes for 2025.

What Are Tax Slips?

Tax slips are official documents that report your income and deductions for a specific tax year. Employers, financial institutions, and other organizations provide these slips to individuals and the CRA to ensure that income is reported accurately. The information on these slips helps you complete your tax return correctly and ensures that you pay the right amount of tax.

The three most common tax slips in Canada are:

T4 Slip – Statement of Remuneration Paid
T4A Slip – Statement of Pension, Retirement, Annuity, and Other Income
T5 Slip – Statement of Investment Income

Each of these slips reports different types of income, so let’s take a closer look at what they mean and how they affect your tax filing.

T4 Slip: Statement of Remuneration Paid

What Is a T4 Slip?

The T4 slip is a tax form issued by employers to employees. It reports the income you earned from your job and any deductions taken from your paycheck. Employers must give T4 slips to employees by the end of February each year.

Who Receives a T4 Slip?

If you worked for an employer and earned a salary or wages, you should receive a T4 slip. This includes full-time, part-time, and seasonal employees.

What Information Does a T4 Slip Include?

A T4 slip contains several important details:

• Employment income: The total amount you earned from your job.
• Income tax deducted: The amount of tax your employer deducted from your paychecks.
• Canada Pension Plan (CPP) contributions: The amount you contributed to CPP.
• Employment Insurance (EI) premiums: The amount deducted for EI.
• Other deductions and benefits: This can include union dues, pension contributions, or taxable benefits like health insurance.

How to Use a T4 Slip for Filing Taxes

When you file your taxes, you will use the information on your T4 slip to report your income and deductions. If you had multiple jobs during the year, you may receive more than one T4 slip. Make sure to include all T4 slips when filing your taxes to avoid mistakes.

T4A Slip: Statement of Pension, Retirement, Annuity, and Other Income

What Is a T4A Slip?

The T4A slip reports various types of income that are not from regular employment. This includes pension payments, self-employment income, scholarships, and other sources.

Who Receives a T4A Slip?

You may receive a T4A slip if you earned money from:

• A pension or retirement plan
• Self-employment commissions
• Scholarships or bursaries
• Certain insurance payments
• Research grants

What Information Does a T4A Slip Include?

A T4A slip contains different types of income and may include:

• Pension or superannuation: Retirement income from a pension plan.
• Self-employed commissions: If you earned commissions as an independent contractor.
• Scholarships and bursaries: Taxable financial aid received for education.
• Other income: Research grants, RESP withdrawals, or fees paid for services.

How to Use a T4A Slip for Filing Taxes

If you receive a T4A slip, you must report the income on your tax return. Some types of income on a T4A slip may be taxable, while others may be tax-free. For example, scholarships may not be taxable if they are used for tuition and other educational expenses. Make sure to check with the CRA or a tax professional if you are unsure about your T4A income.

T5 Slip: Statement of Investment Income

What Is a T5 Slip?

The T5 slip reports investment income earned during the year. This includes interest, dividends, and some other types of investment earnings.

Who Receives a T5 Slip?

You may receive a T5 slip if you earned investment income from:

• Interest on savings accounts, term deposits, or GICs
• Dividends from Canadian corporations
• Certain royalty payments

What Information Does a T5 Slip Include?

A T5 slip includes details such as:

• Interest income: Interest earned from bank accounts or other investments.
• Dividend income: Payments received from investments in Canadian corporations.
• Foreign income: If you earned interest or dividends from foreign investments, it may be included.

How to Use a T5 Slip for Filing Taxes

Investment income reported on a T5 slip must be included in your tax return. Some investment income, like Canadian dividends, may qualify for special tax credits. If you have multiple investments, you may receive several T5 slips.

Key Filing Deadlines for 2025

For the 2024 tax year, the deadline to file your taxes is April 30, 2025. If you are self-employed, you have until June 15, 2025, but any taxes owed must still be paid by April 30, 2025.
Employers, financial institutions, and other organizations must send T4, T4A, and T5 slips to individuals and the CRA by February 28, 2025.

What Happens If You Don’t Receive a Tax Slip?

If you do not receive a tax slip by early March, you should:

Check online: Many tax slips are available in your CRA My Account.
Contact the issuer: Reach out to your employer, pension provider, or financial institution.
Use your pay stubs or financial statements: If you can’t get the slip, you may estimate your income using these documents.

Failing to report income from a missing tax slip could result in penalties, so it’s important to follow up if you don’t receive one.

How to File Your Taxes in 2025

You can file your taxes in three main ways:

1. Online using tax software: Most Canadians file taxes using CRA-approved tax software, such as TurboTax or Wealthsimple Tax.
2. By paper: You can fill out a paper tax return and mail it to the CRA.
3. Through a tax professional: An accountant or tax preparer can help you file your taxes correctly.

The CRA also offers NETFILE, a secure online filing system that allows you to submit your tax return directly to the CRA.

Get Expert Help with Global FPO

Understanding your T4, T4A, and T5 slips is essential for accurate tax filing. These slips report different types of income and ensure that you pay the correct amount of tax. Keeping track of all tax slips and filing on time can help you avoid penalties and reduce tax season stress.
If you need professional assistance, Global FPO offers expert tax services to help individuals and businesses navigate the filing process with ease. Whether you need guidance on missing slips, deductions, or complex tax situations, their team of professionals can simplify your tax filing experience.
Stay organized, file on time, and consider expert support for a smooth tax season in 2025!

FAQs

1. What should I do if I don’t receive my T4, T4A, or T5 slip?
If you don’t receive your tax slip by early March, check your CRA My Account, contact the issuer (employer, pension provider, or financial institution), or use your financial records to estimate your income.

2. Can I receive more than one T4 slip?
Yes, if you worked for multiple employers in a year, you will receive a T4 slip from each one. Make sure to include all your T4 slips when filing your tax return.

3. Is all income on a T4A slip taxable?
Not necessarily. Some amounts, like scholarships, may be tax-exempt if they are used for tuition and education-related expenses. Always review your slip carefully and consult a tax professional if unsure.

4. What types of income are reported on a T5 slip?
A T5 slip reports investment income such as interest from savings accounts, dividends from Canadian corporations, and certain royalty payments.

5. How can Global FPO help with tax filing?
Global FPO offers professional tax services to assist individuals and businesses in understanding their tax slips, maximizing deductions, and ensuring accurate and timely tax filing.