T4 Slip Boxes 24 and 26

I've been asked whether the same number in box 14 needs to be entered into box 24 (EI insurable earnings) and box 26 (CPP/QPP Pensionable earnings) or can they be left blank when preparing the T4 slip.

CRA introduced new rules for completing a T4 slip as a result of the changes to CPP. Boxes 24 and 26 must ALWAYS be completed now. Prior to 2012, it was acceptable and normal to have T4 slip boxes 24 and 26 blank when they matched box 14. That is no longer an acceptable practice due to the changes in CPP that came into effect in 2012.

These days, for each box, you need to enter the total amount up to the maximums for the year OR zero if exempt. If there are no insurable and/or pensionable earnings, you need to enter "0" in the field.

Examples of amounts to exclude in Box 24 - EI insurable earnings, "Do not report in box 24 amounts paid to your employee for employment, benefits, or other payments that should not have EI premiums deducted ... or the unpaid portion of any earnings from insurable employment that you did not pay because of your bankruptcy, receivership, or non-payment of remuneration for which the employee has filed a complaint with the federal, provincial, or territorial labour authorities."

For more details on how to complete Box 24 google "CRA Filling Out The T4 Slip".

Box 26 Examples - CPP pensionable earnings, "If you provide pensionable taxable benefits (non-cash) and no other remuneration is paid in a tax year (for example, an employee is on an unpaid leave of absence and the employer continues to provide benefits during the leave), enter "0" in box 26. For security option benefits, report the amount of the benefit in box 26 at all times. Do not code the slip CPP-exempt in box 28, since the employee may want to elect to pay CPP on the amount."

See the next question for excluded amounts for CPP purposes.

The CRA website details the types of box 14 employment income that must be subtracted and not included in box 26. In many cases, box 14 and 26 will be the same.

For more details on how to complete Box 26 google "CRA Filling Out The T4 Slip".

There is also a bit more information about T4 slip boxes 24 and 26 in the next Q&A.

As a general rule, if you are overriding any calculations in your tax program ... you are doing it wrong.

Tax software has generally paid computer programmers to code in all the tax rules. When an override is necessary ... the deduction is usually optional or an advanced tax calculation.

Box 24 represents the amount of insurable earnings subject to the maximum limit used to calculate the employee's EI premiums. This means it is box 14 less any earnings that are not subject to EI premiums. (See above for exclusion examples.)

There is no age limit to deducting EI premiums. However, the following employment is not insurable:

• casual employment - see the definition here
• non-arm's length employment - i.e. related people

Box 26 represents the pensionable earnings subject to the maximum limit. This means it is box 14 less any earnings that are not subject to CPP contributions.

So what are some of the exceptions? Some examples for CPP contributions when the income is not pensionable are:

• an employee is under 18 or over 70 years of age;
• an employee is between 65 and 70 years of age and elected to stop CPP contributions by submitting Form CPT 30 with parts A, B and C completed; prior to 2012, the exception was the employee received a CPP retirement pension
• an employee is between 65 and 70 years of age and elected to restart CPP contributions by submitting Form CPT 30 with parts A, B and D completed; prior to 2012, the exception was the employee received a CPP retirement pension
• the employee received CPP disability pension;
• any income or benefits listed in CRA's publication RC4120 chapter 2 of Employer's Guide - Payroll Deductions and Remittances.

For most people, T4 slip boxes 24 and 26 will match box 14. Prior to 2012, if the amounts did match box 14, they were generally left blank. That is no longer an acceptable practice due to the changes in CPP that came into effect in 2012.

Box 24 is an information box. It does not go anywhere on your tax return. The T4 slip shows a line number on where to report a box on your income tax return. If there is no line number provided, then it does not get reported on your tax return.

If you look at your T4 slip, you should notice that most of the boxes have a line reference except boxes 24 and 26. CRA's publication Employers' Guide Filing the T4 slip and Summary says they use T4 boxes 24 and 26 information for "pensionable and insurable earnings review (PIER) reports to check your T4 slips for CPP and EI deficiencies."

I believe box 14 should be blank if there is an employment code in box 29 of :

11 - Placement or employment agency workers
12 - Taxi-drivers or drivers of other passenger-carrying vehicles
13 - Barbers or hairdressers
17 - Fishers - Self-employed

These tax individuals are special situations with separate rules. Check out CRA's site at Businesses> Payroll> Completing Returns> T4> Special situations.

You should see your gross earnings listed under other information with the appropriate code for your industry. These industries get to claim additional deductions if they received Form T2200 Declaration of Conditions of Employment from their employer.

Your best bet is to contact your employer and/or payroll department and ask them how it was calculated. It is likely the amount is from a taxable benefit you received from your employer.

First thing I would do is sign onto your CRA My Account. Check to see if your T4 information has been shared with CRA yet by looking at the tax slip information section. Employers are fined by CRA if they have not submitted their T4 information to CRA by the end of February.

If it's not there, you have two other options.

(1) Phone your Payroll Department (or talk to your boss)  ... or whoever handles payroll in your company ... to see if they can give you a time estimate as to when you will be receiving your T4.

• If your company is still mailing the T4 slips out, you need to check to see if they have your correct address on file. If they don't, it is possible that your T4 went to your old address. 
• If your company is sending the T4 slips electronically, then make sure you check that they have your correct email address. It's even possible it's sitting in your junk mail if they are using a payroll service.

(2) If neither of those work options work, you can still file your tax return using the information from your last year-to-date pay stub from the previous year (currently 2023). Most of the information on your last pay stub for the year will match the T4 slip that will be issued. The only amounts that may not be right will likely be related to employee taxable benefits.  

While it is stressful to have not received your T4 yet ... and it is really great that you are actually following up ... don't stress out too much yet. There is still time. Remember you have until April 30 to file your income tax return.

I hope this response helps you out.

When the owner of a business dies, it is classified as a special situation with regards T4 and T4A slips.

The payroll information return(s) must be filed within 90 days of the death if the owner of the business dies.

Don't forget that you will have to close all CRA accounts after all final returns have been processed and paid.

When the owner of a business declares bankruptcy, it is classified as a special situation with regards T4 and T4A slips.

The payroll information return(s) must be filed within 30 days from the date the business ceases to operate.

Note: Payroll source deductions must be remitted within 7 days from the date the business ceases.