2023 T4 Income Tax and CPP Remittance

By January 8, 2024News, Newsletters

In the course of preparing the 2023 financial statements for your organization, you may recall that it was necessary to declare management salaries in addition to any salaries or wages you may have paid to regular employees.

If you have not made any payroll remittances for 2023 for your management salaries, please contact Ryan Lore or Marnina Nattrass at the email addresses or phone numbers listed below.  If required, we recommend a nominal payment be made to The Receiver General of Canada by January 10, 2024. The remittances should be made to your company’s payroll “RP” account.  They will be incorporated into your 2023 T4 slips.

If you plan to remit only a nominal amount of income tax, you should be aware that CRA now places a heightened emphasis on assessing interest on the difference between the tax actually paid and the theoretical amount to be remitted according to the Canada Revenue Agency’s published withholding guides.  Consequently, in today’s tax environment, it is preferable to make regular monthly remittances throughout the year, rather than a single payment once a year (whether nominal or otherwise).  Please contact us if you require further assistance on this matter.

Please note that there is one change that will affect the 2023 T4 filing. As part of the federal budget for 2023, the Canadian Dental Care Plan (CDCP) was developed to provide coverage for uninsured Canadians. To help with eligibility, employers and payors must report on the dental coverage they offer to their employees as of December 31, 2023. This will be reflected on the tax slips as one of five codes, dependent on the type of coverage available to individuals, regardless of which option is selected. We will require confirmation of what type of coverage is available as a part of the payroll information provided to us. Please contact us if you have any questions regarding dental codes.

In order for Lohn Caulder LLP to prepare your 2023 T4s, we will require the necessary information by no later than the end of January 2024.  This information would include a summary of your calendar-year payroll records.  The filing deadline for T4s is February 29, 2024 and it is your responsibility to ensure that this filing deadline is met to avoid penalties.

Electronic filing of T4s is now mandatory. Therefore, once we have received and processed your information, we will electronically file the T4 Information Returns to the CRA. The copies which you later receive from us will be strictly for your own files, and your employees if applicable.

There is also a change for the 2024 payroll year onwards to be made aware of with regards to the Canada Pension Plan. A CPP enhancement was introduced which adds an additional maximum pensionable earnings amount above the original limit, and a second withholding rate and requirement in between the two limits. We encourage you to educate yourself further on this matter and are happy to answer any questions.

Mr. Ryan Lore and Ms. Marnina Nattrass of our office are in charge of T4s – please contact them if you have any questions.  Ryan’s email is rlore@lohncaulder.com, and his direct dial telephone is 604-408-3079. Marnina’s email is mnattrass@lohncaulder.com, and her direct dial telephone is 604-408-3013.

Thank you in advance for your assistance and co-operation.

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