T4, T4A, and T5 Slips Explained: Your Updated Guide for 2025 Filing
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Tax season is here again, and for business owners, that means it's time to issue T-slips to employees, contractors, and investors. Whether you’re filing yourself or working with an accounting partner like us, understanding the differences between T4, T4A, and T5 slips will help you stay compliant and avoid errors that could lead to CRA penalties.
This updated guide breaks down each slip, when to use them, and what business owners need to know for the 2025 tax filing season.
T4 vs. T4A vs. T5: What’s the Difference?
Breaking It Down
T4 Slip – For Employees
The T4 slip (Statement of Remuneration Paid) is typically issued to employees - i.e. anyone on payroll. Employees receive a separate T4 slip from every employer they worked for during the calendar year.
Beyond the basics like your name, address, and SIN, here are the key boxes to pay attention to:
T4A Slip – For Contractors and Certain Payments
A T4A slip is typically issued to contractors, freelancers, and others who received non-employment income. If you paid someone $500 or more for services (and they’re not on payroll), you may need to issue a T4A instead of a T4.
T5 – For Investment Income
A T5 slip (Statement of Investment Income) is typically issued to investors and shareholders who earned dividends, interest, or other investment income. If you received more than $50 in interest or dividends from a Canadian source, expect a T5 slip.
How to File T-Slips
Business owners have several options for filing T4, T4A, and T5 slips:
Use CRA’s Online Services – You can submit T-slips electronically via CRA’s My Business Account or the Web Forms application. This is useful for small businesses with a few employees.
Accounting Software – Many payroll and bookkeeping platforms integrate T-slip generation and e-filing.
Hire an Accountant (like us!) – We take care of T-slip filings, payroll, and compliance so you can focus on running your business.
While businesses have the option to file T-slips on their own, many prefer to work with accountants to avoid costly errors, penalties, and compliance headaches.
Avoid These Common T-Slip Mistakes
Issuing the Wrong Slip – Misclassifying an employee as a contractor can trigger CRA penalties.
Late Filing – T4, T4A, and T5 slips must be filed by February 28, 2025 to avoid fines.
Incorrect Amounts – Ensure earnings, deductions, and taxable benefits are correctly reported.
Forgetting to File – Even if there’s no tax due, businesses must still file T-slips if income was paid out.
Need Help?
Filing T4, T4A, and T5 slips correctly is crucial for compliance and avoiding costly penalties. We help businesses handle payroll, T-slip filings, and tax compliance so they don’t have to. Connect with us today!
