Canada Revenue Agency (CRA) recently released its 2024 T4A Publication (RC 4157 Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary). There are several updates of note:
· The CRA will waive the requirement to file T4A for payers who are individuals and who contract the payee in a personal capacity (ex. maintenance of personal residence).
· A note has been added for payers of wage-loss replacement plans (Code 107). Taxpayers must withhold income tax from all wage loss retirement plan benefits. If the taxpayer also deducts for Canada Pension Plan (CPP) and Employment Insurance (EI), the taxpayer must report the income and deductions on a T4. If the taxpayer does not deduct CPP and EI, the taxpayer must report the income and deductions on a T4A.
· The instructions for Box 15 (Payer-Offered Dental Benefits) have been updated to clarify that the field is mandatory if an amount is reported in Box 16 (Pension or superannuation) for calendar year 2023 and after.
· The instructions for Box 134 have been updated. Box 134 must now be used to report First Home Savings Account (FHSA) distributions. The field will continue to also be used to report Tax-Free Savings Account (TFSA) payments.
· Code 205 (One-Time Payment for Older Seniors) has been removed from the guide and should no longer be used on the form.
· Electronic filing for tax year 2024 will be available on January 13, 2025.
· As of January 1, 2024, filers with 5 or more of the same information return type must file those returns electronically.
· The guide has been edited to clarify that there is a fee for making payments to CRA using a QR code at the Canada Post.
The 2024 T4A Publication can be found here.
