Late T4 and T5 slips: what the CRA charges and how to fix it
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The penalty grows for each day the slips are late and depends on how many slips you filed late. The minimum is CAD 100.
When the slips are due
T4 and T5 slips, with their summaries, are due on the last day of February for the calendar year before. The CRA’s page on when to file information returns lists the dates for other slip types.
What a late filing costs
- T4 slips: the penalty is never less than CAD 100, and otherwise depends on how many slips were filed late. For 1 to 50 slips it is CAD 10 a day, up to CAD 1,000. For 51 to 500 it is CAD 15 a day, up to CAD 1,500. For 501 to 2,500 it is CAD 25 a day, up to CAD 2,500. For 2,501 to 10,000 it is CAD 50 a day, up to CAD 5,000. For 10,001 or more it is CAD 75 a day, up to CAD 7,500.
- T5 information return: the CRA states a minimum penalty of CAD 100 and a maximum of CAD 7,500. Its T5 penalties page has the detail.
A fictional example for T4 slips: 12 slips filed 20 days late. At CAD 10 a day that is CAD 200, which is above the CAD 100 minimum and below the CAD 1,000 maximum for that range. The figures are invented.
What to do when you missed it
- File the slips and the summary now. The penalty grows for each day they are late, up to the maximum.
- Check the figures against the payroll records or the dividend resolutions before you file, so the slip does not need correcting later.
- If you did not file because the books were behind, finish the books first. The slips come from them.
If you had a reason
The CRA can cancel or waive penalties and interest in some circumstances beyond your control, such as illness, a disaster or financial hardship. You apply on Form RC4288, with supporting documents, and the CRA decides each request.
When are T4 and T5 slips due?
The last day of February for the previous calendar year.
What is the penalty for filing T4 slips late?
At least CAD 100. For 1 to 50 slips it is CAD 10 for each day late, up to CAD 1,000, and the daily amount and the maximum rise with the number of slips, to CAD 75 a day and CAD 7,500 for 10,001 or more.
What about T5 slips?
The CRA states a minimum penalty of CAD 100 and a maximum of CAD 7,500 for the T5 information return. Its T5 penalties page has the detail.
Is the penalty per slip?
No. It is set by how many slips were filed late. The daily amount and the maximum rise with the size of the batch.
Can the penalty be cancelled?
In some circumstances beyond your control, yes. You apply on Form RC4288 and the CRA decides.
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