Generally, if an employer has paid its employees throughout the tax year, it is legally responsible for preparing and issuing T4s to the employees at the end of the tax year. Humi Payroll streamlines the process by automatically preparing the T4, T619, and T4 Summary records once the last payroll of the year has been processed. As part of year end activity, these tax forms must be reviewed and issued to the employees, as well as submitted to the CRA prior to the issuance or filing deadlines.
Humi Payroll provides three types of tax information for review and filing needs:
Employee T4: T4 slips are summaries of employment earnings and deductions for the year for individual employees. Humi will produce T4s for active and terminated employees, as long as the employees have been paid through Humi Payroll in the past.
T4 Summary: T4 Summary contains the totals of the amounts reported on the related T4 slips. This is view only and cannot be downloaded.
T619s: T619, is an electronic transmittal record of T4 and T4 Summary. This is to be downloaded and filed with CRA. In addition, the T619 can also be downloaded and viewed as a text file.
For companies that have implemented payroll during the year, the year-to-date (YTD) earnings and deductions that were imported to the Humi system will be included in the T4 for the entire year. It is recommended that you follow up with your previous payroll provider to confirm they do not file T4s as this will overstate actual earnings and will require reconciliation.
This guide will focus on how to best use the tax form features in Humi Payroll.
1. Navigate to the Payroll page by clicking Payroll from the menu column. Click on the Records tab and select the Tax Forms option.
2. You'll now have the option to generate your year-end tax package by clicking "Generate T4s". If you have already generated the tax package, proceed to the next step.
Make sure all of your employee data and payroll data such as records and benefits are up to date before generating your employer package.Benefits can be configured by going to Payroll > Benefits > "Select benefit type > Scroll down to T4 Box and select the box(s) from the drop down.
3. Once you have generated your T4s, an item named 2020 Annual T4 Return will be listed as an "Open" tax package ready for review. Click into the tax package in order to review individual tax documents.
4. You'll now see all employee T4s listed in the year end tax package with the option to view and edit each one individually. If you continue scrolling you'll see the T4 summary listing the summations for the each T4 box for the 2020 tax year.
1. To review and edit a T4, simply click into an employee's name in the tax package.
At the top of the page, you'll then see all the employee details such as name and address and towards the bottom, you'll see all T4 boxes autofilled based on your payroll setup configurations.
Payroll Benefits are automatically populated based on the T4 box you've selected along with the tax toggles that you set up in Payroll > Benefits. Income types are automatically populated based on the preset taxation method and preset additional T4 boxes.
If you've implemented Humi before March 15th, T4s will automatically populate codes 57-60 to accommodate CRA's new COVID-19 reporting period. If you've implemented Humi payroll after March 15th, you'll have access to the boxes below to manually edit to ensure your T4s are accurate and compliant.
2. After you've reviewed and made any necessary edits to the T4, you can select "Preview and Review" at the top right corner of the screen. In case you've made any mistakes, you can always revert your employees T4 back to its original version by clicking "Revert to Original".
By clicking "Preview and Review" Humi will display the PDF version of the T4 and run an automatic PIER analysis listing any discrepancies in Insurable and Pensionable earnings.
It's important to note discrepancies can occur due to rounding methods or implementation errors. Any overages will be settled by the CRA at year end while deficiencies can be rectified as outlined in the Verify Statutory Deductions Amounts section in our Year End guide.
3. After all reviews and edits have been made, go back to your list of employees and click "Finalize T4s".
4. At this point Humi will prompt you with 3 items to check off before proceeding:
Once you've verified and checked off each item, click "Save" and your T4s will now lock and change their status from "Open" to "Finalized".
Repeat this process starting from step 1 to review and finalize each employee T4 slip. In addition, review the T4 Summary regularly to ensure the sum of reported T4 amounts are consistent with your reporting expectations.
5. Once all employee T4 slips have been reviewed and finalized, click "Email All T4s" to send a secure PDF T4 file to each employee's email address based on their contact information on file with Humi.
After you've finalized your T4s, you'll need to download and upload the T619 file onto the CRA's online portal, Internet File Transfer Option.
1. Select the "Download T619 & T4s" option. Two items will be downloaded:
Note: The T619 is downloaded as an XML file, which is the required format to upload on to the CRA's website. You may have trouble opening this file on your computer to view its contents. If you'd like to view its contents, you can view this information on the T4 Summary in Humi.
2. Click on the “Internet File Transfer Option” link at top of your screen, and we'll Direct you to the CRA's website. Learn more about submitting T619 in our Year End guide.
If you've submitted your T619 file to the CRA and you need to make a correction, the CRA requires that you create and submit an Amended T4, along with uploading a new T619 on the CRA's website. Before doing so, you can create and review T4 amendments through Humi Payroll.
1. On the tax package page, click "Create Amendment" at the top right corner of your screen
2. A new T4 package will be generated along with an "Open" status icon
3. Click "Add Amended T4" and select the employee(s) you'd like to create amendments for and click "Save".
4. You'll now see the employee listed below. You can click into the employee to view their current T4 and make any edits or changes.
Repeat this process starting from step 1 to review and finalize each amended employee T4 slip. In addition, review the T4 Summary regularly to ensure the sum of reported T4 amounts are consistent with your reporting expectations.
5. Once you've confirmed the new amended T4 information is accurate, you can select "Finalize T4s" and check off the listed items before proceeding:
6. Click "Email All T4s" to send the amended T4(s) to your employees.
7. Your Amended 2020 Annual T4 Return will now change its status from "Open" to "Finalized". You can now download the Amended T4s in PDF and the Amended T619 file in order to upload onto the CRA's website. See above to learn more about how to upload your T619 to the CRAs online portal.