Canadian payroll breaks down into several distinct tax slips. For employees, you file a T4 per employee per year and, in Quebec, an RL-1 as well. For certain payments to self-employed individuals, it's a T4A. When an employee has an interruption of earnings — layoff, resignation, termination — you must issue a Record of Employment (ROE) for Service Canada. Each document has its own rules, deadlines and penalties. This guide is informational: 4invoices is invoicing software and does not handle payroll or these slips — use payroll software or your accountant.
The T4 and its Quebec counterpart, the RL-1
For each employee, you file a T4 for the calendar year, no later than the last day of February of the following year. For employees in Quebec, you also file an RL-1 (Relevé 1) with Revenu Québec, presenting similar information under Quebec rules. Both slips must be consistent with your payroll records and remittances.
The Record of Employment (ROE) on termination
When an employee has an interruption of earnings — layoff, resignation, end of contract, maternity or sick leave — you must issue an ROE. Filed electronically, it's generally due within 5 calendar days after the end of the pay period in which the interruption occurs. The ROE shows the reason code, insurable hours and insurable earnings; Service Canada uses it to determine EI eligibility.
T4A for self-employed individuals
Certain payments to self-employed individuals (for example fees over $500 in the year, or payments from which you withheld tax) must be reported on a T4A. For services rendered in Canada by non-residents, a 15% withholding (Regulation 105) generally applies, reported on a T4A-NR. On the invoicing side, your contractors can bill you with 4invoices — but slip filing is outside the product.
Canadian payroll, the big picture
Payroll in Canada involves several source deductions each pay period: federal income tax, provincial income tax, Canada Pension Plan (CPP) or Quebec Pension Plan (QPP), Employment Insurance (EI) and, in Quebec, the Quebec Parental Insurance Plan (QPIP). Rates and maximums change every year; the CRA and Revenu Québec publish the new withholding tables at year-end for the following year.
Quebec has its own specifics: employees working in Quebec contribute to QPP rather than CPP — two distinct plans with different rates. They also contribute to QPIP, which partly replaces EI parental benefits. The CNESST contribution (formerly CSST) is paid by the employer, based on payroll, and doesn't appear on the T4.
Year-end is the moment of truth. By the last day of February, you give T4/T4A slips to employees and contractors, file the information return (slips + summary) with the CRA and, for Quebec, the RL-1s with Revenu Québec. Late filing triggers a penalty that depends on the number of slips ($100 to $7,500). Consistency between slips, wages paid and deductions remitted is one of the first things checked in an audit.
Frequently asked
I just hired my first employee. Where do I start?
Open a payroll program (RP) account with the CRA, register as an employer with Revenu Québec and CNESST if you're in Quebec, have the new employee complete a TD1 (and TP-1015.3 in Quebec), calculate deductions using the current tables and remit them on time — for most small employers, by the 15th of the following month. 4invoices doesn't do payroll: payroll software or your accountant handles it.
My employee asks — CPP or QPP? How does that get decided?
Generally it's the province of employment that decides — the province of the employer's establishment where the employee reports for work — not the province of residence. An employee reporting to an establishment in Quebec contributes to QPP; one reporting to an establishment in Ontario contributes to CPP. Special cases (remote work, several provinces) are worth checking with the CRA or Revenu Québec.
How soon after the last day of work must the ROE be issued?
For an electronic ROE, generally within 5 calendar days after the end of the pay period in which the interruption of earnings occurs. A late ROE can lead to a fine (up to $2,000) and delay the employee's EI benefits. This is done in your payroll software or in Service Canada's ROE Web, not in 4invoices.
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