Chp 3 - Year-End - Federal Flashcards
What do you need to do before completing the T4s & T4As?
Reconcile the accounts for source deductions.
True or false, the PD7A form has a credit balance throughout the year?
True
True or false, as payments are remitted to the CRA during the year, your source deductions account is credited?
True
True or false, when the T4 & T4A slips are filed at year-end, the source deduction accounts are debited?
True
When are taxable benefits subject to source deductions?
As they are received or enjoyed by the employee.
What is a pension adjustment?
The measure of the benefit an individual earns in a year in a regular RPP or DPSP.
True or false, the pension adjustment reduces the amount an individual can contribute to their RRSP in the following year?
True
What is benefit entitlement?
The portion of a member’s pension that is considered to have accrued during the year.
What is a forfeited amount?
The amount a member ceased to have rights to in a deferred profit sharing pension plan.
What is a pension credit?
The value of the benefit the member earns
True or false, the pension adjustment formula is used to calculate a pension credit for a defined benefit pension plan?
True
Pension adjustment formula for defined benefit pension plan
Pension adj = (Benefit entitlement x9) - 600
Pension adjustment formula for defined contribution pension plan
Employer contributions + employee contributions + reallocated forfeitures + additional voluntary contributions
Pension adjustment formula for deferred profit sharing pension plan
Employer contributions + reallocated forfeitures
Pension adjustment formula for combination plans
Total of all pension credits for each component
In what order do you complete T4s?
Alphabetical by surname
True or false, the pension adjustment is only reported in whole dollars?
True
If the CRA copies of the T4 are filed electronically do you submit the summary form?
No
What is the T4A?
Statement of Pension, Retirement, Annuity & Other Income
What does the T4A report?
- pension or superannuation
- lump-sum pymts
- self-employed commission
- patronage allocations
- RESP pymts
- other income (research grants, death benefits, wage-loss replacement)
- fees or other service amounts
What does PIER stand for?
Pensionable & Insurable Earnings Review
How can T4 & T4As be filed for 1-50 slips?
- paper filing
- T4 web forms
- electronic filing
How can T4 & T4As be filed for 51-100 slips?
- T4 web forms
- electronic filing
What is the only filing method for T4 & T4As if you have over 101 slips?
Electronic filing
When amending a T4 slip do you need to complete an amended T4 Summary?
No
