T4, T5, and T4A Slips: What Business Owners Need to File by February 28
Understanding your February filing obligations – and how to avoid penalties
February is a critical month for Canadian business owners. In addition to preparing for year-end tax filings, many businesses must meet an important Canada Revenue Agency (CRA) deadline: February 28.
If your business paid employees, contractors, or shareholders during the year, you may be required to file T4, T5, and/or T4A information slips. These filings are mandatory even when no tax was withheld or no balance is owing. Missing the deadline – or filing incorrectly – can result in penalties and increased CRA scrutiny.
For businesses across Canada, understanding which slips apply and how to file them correctly is essential to staying compliant and avoiding unnecessary costs during tax season.
What Is the February 28 Deadline?
By February 28, businesses must complete two key requirements:
File all required information slips with the CRA
Provide copies of those slips to employees, contractors, or other recipients
This deadline applies regardless of your business size or whether your business had taxable income for the year. Information slips are used by the CRA to match income reported by individuals and corporations, making accuracy and timeliness especially important.
More information on payroll and information return requirements is available through the CRA’s payroll guidance.
T4 Slips – Reporting Employment Income
T4 slips are used to report employment income paid to employees, including:
Salaries and wages
Bonuses and commissions
Taxable benefits and allowances
Source deductions such as CPP, EI, and income tax
In addition to issuing individual T4 slips to employees, employers must also file a T4 Summary, which totals all employment income and deductions reported for the year.
Even if an employee worked only part of the year or earned a small amount, a T4 slip may still be required. The CRA’s T4 guide provides detailed instructions on reporting requirements and common errors to avoid.
T5 Slips – Dividends and Investment Income
T5 slips report certain types of investment income, most commonly dividends paid to shareholders.
Owner-managed corporations are frequently required to issue T5 slips when dividends are paid to shareholders instead of salaries. This includes dividends paid to family members who are shareholders of the corporation.
T5 slips must be filed even if the recipient is related to the business owner and even if tax was not withheld at source. Proper dividend reporting is critical, as the CRA closely reviews shareholder remuneration arrangements.
Additional guidance on T5 slips is available in the CRA’s T5 information return guide.
T4A Slips – Payments to Contractors and Other Recipients
T4A slips are used to report payments made to independent contractors, professionals, and other service providers, including:
Self-employed contractors
Consultants and freelancers
Professional fees (legal, accounting, etc.)
A common misconception is that T4A slips are only required when tax is withheld. In reality, T4A slips must still be filed even when no tax was deducted.
Proper worker classification is essential. Misclassifying an employee as a contractor can lead to penalties, reassessments, and retroactive payroll obligations. The CRA’s T4A guide outlines when these slips are required and how payments should be reported.
Filing Options and Electronic Filing Requirements
Information slips can be filed using several methods:
Payroll or accounting software
Paper filing (only permitted for five slips or fewer of the same type)
Through your CPA or authorized representative
When more than five slips of the same type are required, electronic filing is mandatory. Filing on paper when electronic filing is required can result in additional penalties, even if the slips are otherwise accurate and on time.
Penalties for Late, Incorrect, or Improperly Filed Slips
The CRA may impose penalties when slips are:
Filed late
Filed with errors or omissions
Filed in paper format when electronic filing is required
Late-Filing Penalties
Late-filing penalties depend on how many slips are affected and how late they are filed:
1-3 days late: $10 per slip (maximum $1,000)
4-5 days late: $15 per slip (maximum $1,500)
6-7 days late: $25 per slip (maximum $2,500)
8 or more days late: $50 per slip (maximum $2,500)
Example: Filing 10 slips 10 days late would result in a $500 penalty.
Failure to File Electronically
When electronic filing is required but not used, penalties are based on the number of slips:
6-50 slips: $125
51-250 slips: $250
251-500 slips: $500
501-2,500 slips: $1,500
2,501 or more slips: $2,500
These penalties apply even if the slips are otherwise accurate.
One-Page February Filing Checklist
To help stay on track, business owners should complete the following before February 28:
Confirm worker classification (employee vs. contractor)
Review payroll and payment records
Prepare required T4, T5, and T4A slips
Confirm whether electronic filing is required
File slips with the CRA by February 28
Provide slips to recipients
Retain copies and filing confirmations
Final Thoughts
Meeting the February 28 information slip deadline – and filing in the correct format – helps businesses avoid penalties, delays, and unnecessary CRA follow-up. With multiple slip types and evolving filing requirements, it can be easy to overlook an obligation or make an avoidable error.
If you are unsure which slips apply to your business, whether electronic filing is required, or how to properly classify workers, seeking professional guidance can provide clarity and peace of mind.
At Miles T. Sweeney Limited, we help Nova Scotia businesses stay compliant and confident throughout tax season by ensuring information returns are prepared accurately and filed on time.
Book a call: 902-468-5500
Email us: info@msweeney.com
Note: The information provided in this article is for general informational purposes only and should not be considered tax advice.