Late T4 return: what penalty applies and what should an employer do next?

Identify what is actually late

A T4 information return, employee copies and periodic payroll remittances are different tasks. Before estimating a penalty, establish which action is outstanding and which reporting calendar year it concerns. A payroll bank transfer does not establish that the T4 return was filed.

CRA publishes late-filing penalty tables for information returns. The applicable calculation depends on the type of return and number of slips, with minimum and maximum amounts. Do not use a GST/HST percentage calculation for a late T4.

Check submission evidence

• Find the filing acknowledgement or rejection from the filing system.
• Confirm the year and employer account.
• Ask the payroll provider whether a submission was completed or only prepared.
• Review employee-copy distribution separately.

If a return was rejected, coordinate the correction with the preparer. Avoid submitting another copy merely because a draft or receipt cannot immediately be found.

Review any assessment before assuming the amount

Compare the notice with the filing facts and discuss discrepancies with the appropriate adviser or CRA. A hypothetical example cannot determine the assessment. If circumstances may support a relief request, review the separate CRA relief process; approval is not automatic.

Prepare the next reporting cycle earlier

Keep the annual T4 task and periodic remittances visible in Compliance Calendar. Use the checklist for reconciliation and save a confirmation reference once filed. The product helps organize the evidence; it does not submit slips, classify employment payments or decide penalties.