GROUP SAVINGS AND RETIREMENT
RESOURCE CENTRE FOR PLAN SPONSORS
You’ve got questions? We’ve got answers!
Offering your employees or organization members a group retirement savings plan is a great way to help them optimize their financial future. But for you as the plan sponsor, we know that this does involve a few daily administrative tasks. That’s why we’ve put together this information-packed resource to help make your life easier.
Frequently asked questions
Tax receipts and completing T4 slips
When do members receive a tax receipt?
A tax receipt will be issued for RRSPs and VRSPs only, capturing all contributions that have been deposited in the member’s account.
Tax receipts are issued to members twice a year by iA Financial Group. They are first made available online, and then mailed out in the following days:
- In January, for contributions made from March to December of the previous year
- In March, for contributions made during the first 60 days of the current year
How do I complete the T4 slip?
Employer contributions that are made to your employees’ RRSPs are generally paid in cash and are pensionable and insurable. However, employer contributions are considered non-cash benefits and are not insurable if your employees cannot withdraw the amounts from a group RRSP (except for withdrawals under the Home Buyers' Plan or Lifelong Learning Plan) before they retire or cease to be employed.
Although the benefit is taxable and has to be reported on the T4 slip, you do not have to deduct income tax at source on the employer contributions you make to an employee’s RRSP if you have reasonable grounds to believe that the employee can deduct the contribution for the year.
Report the taxable amount in box 14, "Employment income", and in the "Other information" area under code 40 at the bottom of the T4 slip. For more information, see these two pages on the Government of Canada website:
You must report the pension adjustment (PA) on a T4 slip and issue this slip by February 28 of each year. The PA must be entered in box 52 of the T4 slip. Leave box 52 blank if the PA calculated is negative or nil, or if the employee died during the year. The plan registration number must be entered in box 50 of the T4 slip, unless the member’s PA is equal to zero.
As an employer, you must declare the PA on the T4 slip (Canada) and produce this slip, along with a Relevé 1 (Quebec), if applicable, by February 28 of each year. The PA must be entered in box 52 of the T4. Leave box 52 blank if the PA calculated is negative or nil, or if the employee died during the year.
You must also enter in box 20 of the T4 slip, and in box D of the Relevé 1, the amount of employee contributions (salary and voluntary). If the employee has not contributed to the plan, leave the boxes blank. The RPP’s CRA registration number must be entered in box 50 of the T4 slip. The employee will be able to deduct the RPP contributions indicated in box 20 of the T4 slip on line 207 of the federal tax return and will have to indicate the PA on line 206 of the return.
For a Quebec return, the employee will be able to deduct the RPP contributions indicated in box D of the Relevé 1 in line 205 of the return.