T4 with Box 24 and 26

by Celik
(Burlington)

T4 slip - NEW RULES effective January 2012 for boxes 24 and 26

T4 slip - NEW RULES effective January 2012 for boxes 24 and 26

NEW RULES effective January 2012 for boxes 24 and 26.

Please note that CRA introduced new rules as a result of the changes to CPP. Boxes 24 and 26 must ALWAYS be completed now.

Enter the total amount up to the maximums for the year OR zero if exempt.

For Box 24 - EI insurable earnings, "do not include the unpaid portion of any earnings from insurable employment that you did not pay because of your bankruptcy, receivership, or non-payment of remuneration for which the employee has filed a complaint with the federal, provincial, or territorial labour authorities."

For more details on how to complete Box 24 - See Businesses> Payroll> Completing returns> T4> Completing the T4 slip> Box 24 EI insurable earnings.

For Box 26 - CPP pensionable earnings, "If you provide pensionable taxable benefits (non-cash) and no other remuneration is paid in a tax year (for example, an employee is on an unpaid leave of absence and the employer continues to provide benefits during the leave), enter "0" in box 26. For security option benefits, report the amount of the benefit in box 26 at all times. Do not code the slip CPP-exempt in box 28, since the employee may want to elect to pay CPP on the amount."

The CRA website details the types of box 14 employment income that must be subtracted and not included in box 26. In most cases, box 14 and 26 will be the same.

See Businesses> Payroll> Completing returns> T4> Completing the T4 slip> Box 26 CPP pensionable earnings for more details.

The following question and answer was from 2011, prior to the new rules coming into effect. Prior to January 2012, it was acceptable and normal to have boxes 24 and 26 on the T4 slip blank. The rest of the information in this post is still relevant.

I have my T4. However, box 24( EI insurable earnings) and 26 (CPP/QPP Pensianable earnings) have no numbers in them. It automatically comes up with the Box 14 figures when I enter it into the tax program.

Do I need to enter the same numbers as Box 14 or leave it empty when I am doing the tax return?

Please help me! Thanks



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Hi Celik,

If boxes 24 and 26 are blank it is because their values match box 14. In this instance, just enter whatever numbers are on your T4 slip and let the tax program calculate how to populate the figures on your tax schedules.










P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

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T4 with Box 24 and 26

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Apr 27, 2011
Rating
starstarstarstarstar 		T4 with Box 24 and 26
by: Anonymous

Hi Bookeeping Essentials,

If I override and remove the number on box 24 and 26 that comes up automatically on the tax return, I get a larger refund. Could you please explain to me why this happen? Is that way acceptable?

Thanks
Apr 28, 2011
Rating
starstarstarstarstar 		If you are overriding, you are doing it wrong
by: Lake

As a general rule, if you are overriding any calculations in your tax program ... you are doing it wrong.

Tax software has generally paid computer programmers to code in all the tax rules. When an override is necessary ... the deduction is usually optional or an advance tax calculation.

Box 24 represents the amount of insurable earnings subject to the maximum limit used to calculate the employee's EI premiums. This means it is box 14 less any earnings that are not subject to EI premiums.

Box 26 represents the pensionable earnings subject to the maximum limit. This means it is box 14 less any earnings that are not subject to CPP contributions.

For most people, boxes 24 and 26 will match box 14. If the amounts do match box 14, they are generally left blank.

So what are some of the exceptions? Some examples for CPP contributions when the income is not pensionable are:

  • an employee is under 18 or over 70 years of age;

  • the employee receives a CPP retirement pension ... however this will be changing in 2012;

  • the employee received CPP disability pension;

  • any income or benefits listed in CRA's publication RC4120 chapter 2 of Employer's Guide - Payroll Deductions and Remittances.
Feb 18, 2012
Rating
starstarstarstarstar 		HELP
by: Anonymous

I'm trying to do my T4's for the employees.

Box 24 is it the same as box 14?
And should 14 & 26 be the same?

I don't get the same from my simply accounting package (its a piece of poop!..I hate this software). My numbers are all squirrelly. I have to double check the calculations.

If I have an income of $14201.16 for Box 14

Box 24 is $ ??
Box 26 is $ ??

So frustrating. I appreciate your help!

Sandy



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Check out this link on the CRA website.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/rtrns/t4/slps/cmpltng-eng.html

It explains what goes in each box. The boxes usually are the same ... but not necessarily.


For example, it says that in box 24, "Do not include the unpaid portion of any earnings from insurable employment that you did not pay because of your bankruptcy, receivership, or non-payment of remuneration for which the employee has filed a complaint with the federal, provincial, or territorial labour authorities."


Check out box 26 instructions for the types of remuneration that could be in box 14 but not in box 26.

What makes you think that Simply Accounting is calculating the T4 slips incorrectly? Normally, if you use the software package properly, you should get the correct answer.
Feb 19, 2012
Rating
starstarstarstarstar 		Box 14 Blank
by: Anonymous

What if my employer put an amount on BOX 24 and 26 and left BOX 14 blank? Can I assume that it's the same?

Thanks.



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I believe box 14 should be blank if there is an employment code (box 29) of :

11 - Placement or employment agency workers
12 - Taxi-drivers or drivers of other passenger-carrying vehicles
13 - Barbers or hairdressers
17 - Fishers - Self-employed
Feb 25, 2012
Rating
starstarstarstarstar 		Box 26 higher than Box 14
by: Anonymous

My box 26 is about $20 higher than what I actually earned and is written in box 14.

What does this mean exactly, and what would I do.



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Contact your employer and/or payroll department and ask them how it was calculated.
Feb 22, 2013
Rating
starstarstarstarstar 		Box 26
by: Arlene

You say "The CRA website details the types of box 14 employment income that must be subtracted and not included in box 26. In most cases, box 14 and 26 will be the same."

Shouldn't Box 26 always be lower than Box 14? Because you have to take off the biweekly exemption before calculating CPP on someone's cheque, shouldn't Box 26 only include all of Box 14 minus the biweekly exemptions?

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