In: Accounting
Employees in Québec receive both a T4 and a RL-1 information slip. Explain five differences between the two slips.
Ans : Differences between the two slips are as follows :
* A federal T4 slip will be automatically generated for every employee, however a RL-1 slip will only be displayed if the province of employment is Quebec.
* Data entered for the federal T4 slip will be used to calculate the Quebec RL-1 amounts.
* The RL-1 slip is used mainly for reporting salaries or wages, and any other remuneration that an employee receives but it is not the case with T4 slip.
* The salary or wages or other remuneration must be reported on the RL-1 slip at the time the amount is paid to the individual where as in T4 it does not happen.
* The T4, also known as the Statement of Remuneration Paid, is an information slip that shows how much money an employee earned and how much was withheld and remitted to the Canada Revenue Agency (CRA). It is also the form that your employees use to file their income taxes each year. Where as it is not the case with RL-1 information slip.