T4 & T5 Slip Reporting – STEPS TO FOLLOW

 

What Is T Slip Reporting?

As accountants, we throw around the term “T slip” a lot!  We will explain it so you can throw the term around too…you know…out socializing, talkin’ business, lookin’ cool, etc.

In simple terms, when a person gets taxable compensation in some form (wages, dividends, contractor payments),  the income to that person needs to be reported to Canada Revenue Agency so the government knows who to tax.  For this, information slips need to be prepared.  There are many different types of taxable income slips beyond what we will focus on. For a list, click HERE

Three of the most common types of slips issued for businesses however, are the T4, T5 and T5018.   

When you have employees or contractors, it’s fairly straight forward – you add up what you paid them, including any benefits, and report all that to the government.  Simple right?

But clients tend to get a bit confused when it comes to themselves as owners of their own company.  What we hear a lot of is, “My company IS my income?  I don’t get it Lisa!”  So below, we will try to explain.

2 thoughts on “T4 & T5 Slip Reporting – STEPS TO FOLLOW”

    1. Brian, we are so happy that it helps you to understand!
      We strive to make things as simple as possible for clients by not overwhelming them with complicated accounting terms….leaving the more complicated terms and procedures for us to handle.

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