Payroll Updates
2024 T4s
MUST Check Box 45 – Employer-offered dental benefits
For T4 slips filed for calendar year 2024 and after, enter the appropriate code using box 45 if you provided access to any dental care insurance or for coverage of dental services of any kind to an employee.
Code Access
Not eligible to access any dental care insurance or coverage of dental services of any kind
Payee only
Payee, spouse, and dependent children
Payee and their spouse
Payee and their dependent children
Do not use box 45 before January 2024 if you are filing electronically.
Reporting this code determines if your child is eligible for the Canada Dental Benefit.
Optional Code 85 – Employee-Paid Premiums For Private Health Services Plans
An employee can claim premiums they paid to a private health services plan (PHSP) as a qualifying medical expense (including the applicable GST/HST or PST). The use of code 85 is optional. However, if you do not use this code, the CRA may ask the employee to provide supporting documents.
2024 T4As
For T4A slips filed for calendar year 2024 and after, enter the appropriate code using box 015 if you provided access to any dental care insurance or for coverage of dental services of any kind. This box is mandatory if an amount is reported in Box 016, Pension or Superannuation. The box will otherwise be optional.
For the 2024 tax year (and those that will follow), there are additional reporting requirements on employees' T4 tax forms: The base and first enhanced CPP/ QPP contributions are still to be reported in Box 16/17. The second CPP contributions are to be reported in Box 16A.
As of January 2024, businesses that file six or more information returns (slips) are required to file them electronically to avoid penalties. Information returns include forms like the T3, T4, T4A, and T5.
Regulations for employee termination
Effective February 1st, 2024, an employer who terminates an employee who has completed a minimum of three years of employment must either provide the employee with written notice equivalent to at least one week per completed year of employment, up to a maximum of 8 weeks of notice, or pay the employee their regular wages in lieu of notice.
Employers are also required to provide employees with a statement of benefits at the time of termination that details their vacation benefits, wages, severance pay, and any other benefits and pay arising from their employment.
To learn more about federal labour standards around termination, layoff or dismissal, visit the Government of Canada website.
2024 CPP and EI Deductions
CPP
There are now two CPP maximum earnings amounts. The 2024 CPP1 maximum earnings is $68,500 and the 2024 CPP2 maximum earnings is $73,200. The CPP contribution on $68,500 is $3,867.50 ($68,500 -$3,500 = $65,000 x 5.95% = $3,867.50). The CPP contribution on $73,200 is $4,055.50 ($73,200-$68,500 =$6,600 x 4% = $264.00. $3,867.50+ $264.00 = $4,055.50).
The Enhanced CPP affects the calculation of employee tax deductions in 2024
The changes in how CPP is treated on a personal tax return mean that of the $3,867.50 of normal max contribution, $631.00 will be deductible on the T1 (rather than being a tax credit). The 4.95% rate that was in place in 2018 is still applicable as a credit, and the excess is deductible.
Additionally, as of 2024, there is a “CPP2” rate of 4% applied on the amount of earnings above the CPP1 maximum earnings and below the CPP2 maximum earnings. The CPP2 contributions by an employee are deductible, rather than being a credit – so someone with over $73,200 of earnings will contribute $4,055.50, of which a total of $838.00 will be deductible.
The employer contribution continues to match the employee contribution amount.
A self-employed individual will contribute $7,735.00 or $$8,111.00 if their pensionable earnings are $68,500 or $73,200 or more respectively.
EI
The 2024 maximum EI contribution is $1049.12 based on maximum insurable earnings of $63,200 x 1.66%. The employer's maximum EI contribution is 1.4 times the employee contribution or $1468.77.
