T4 and T5 Season: The Last-Day-of-February Checklist
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T4 and T5 slips and their summaries must be filed with the CRA on or before the last day of February following the calendar year they cover, with copies delivered to employees and recipients by the same date. Late filing draws a graduated penalty by slip count and days late, so firms lock data collection into January.
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The last-day-of-February rule
One date governs two obligations: filing with the CRA and distributing copies to recipients. Where the date falls on a weekend or public holiday, the next business day applies — compute it against the actual calendar each year.
What T4s need from December payroll
Taxable benefits, automobile standby charges, year-end bonuses and any adjustments must be settled before the payroll year closes. January is for reconciliation, not for discovering that a benefit was never processed.
T5s: dividends and the directors' resolution trail
A T5 reporting a private-company dividend should follow a directors' resolution declaring it. Reconstructing that paperwork a year later is unpleasant and occasionally impossible, so the resolution belongs on the file at the time.
Electronic filing thresholds
The CRA requires electronic filing above a specified number of information returns, and that threshold has been reduced in recent years. Confirm the current figure before slip season, because paper-filing above the threshold carries its own penalty.
The penalty structure
A graduated penalty based on the number of slips and days late, with a minimum of $100 and a maximum of $7,500 — not a flat per-slip amount. The tiers rise steeply enough that a firm with several payroll clients cannot treat February as soft.
A January-to-February working checklist
Reconcile payroll to the ledger, confirm benefits and standby charges, verify recipient addresses, prepare slips, review against the summary, file electronically, distribute copies, and store the confirmation on each client record.
Amended slips without panic
Amending is routine. An incorrect slip left in place will be matched against the recipient's return and surface later at worse timing. Amend, document what changed, and keep the original alongside it.
Frequently asked questions
When are T4 slips due?
By the last day of February following the calendar year they cover, for both filing with the CRA and giving copies to employees. Where that date falls on a weekend or public holiday, a submission on the next business day is treated as on time.
Are T5 slips due at the same time as T4s?
Yes. T4, T4A and T5 information returns share the last-day-of-February deadline for filing with the CRA and distributing copies to recipients.
What is the penalty for filing T4s late?
A graduated penalty based on the number of slips and how many days late the return is, with a $100 minimum and a $7,500 maximum. It is calculated on a rising per-day scale by slip-count tier, not as a flat amount per slip.
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